In the last few years, cannabis when from completely frowned upon to an industry that is worth billions of dollars. In fact, from 2014 to 2018, there were various companies that went public in the stock market exchange and they managed to attract billions of investments that allowed the industry to grow.
However, if you’re thinking about investing in a cannabis company, you’re probably feeling completely overwhelmed and confused, which is why you might be wondering – what are the top 5 cannabis companies to invest in the stock market? Luckily, this is exactly what we’ll discuss in the article below, so let’s take a look:
1. “Innovative Industrial Properties Inc.”
First on our list – and a favorite to a lot of people – is the “Innovative Industrial Properties Inc.”. In the last year, a lot of people opted for investing their money into buying shares from this company, and when you think about the fact that their combined value of funds went to $235 million from $185 million, it seems quite logical why a lot of individuals chose this company to invest in.
At the beginning of 2023, it has managed to double in value and the people behind the organization decided to only pay in dividends, mostly because they are a Real Estate Investment Trust. Now, they aren’t only a REIT, but they are the only REIT out there that legally works and operates in the cannabis industry.
It’s quite simple to understand how they work – basically, they’ll purchase properties through a sale-lease program, meaning that organizations that grow, process, and distribute cannabis can easily sell the to the REIT, and then, they simply enter a long-term agreement that they’ll use the property while the REIT owns it.
By doing this, businesses can obtain more liquidity, and in some situations, they can obtain extra capital for upgrading or improving the facilities. In the last few months, the company has continued purchasing properties, including six properties in Kings Garden and another 63 located in sixteen states.
2. “Gw Pharmaceutical PLC-ADR”
The first thing that you should know about this organization is that it’s based in the United Kingdom and there is a pretty good reason why it has been referred to as one of the best cannabis stock companies out there, even before the increased popularity and demand for cannabis-derived products.
This is due to the fact that this organization has been partnering with CBD and vaping companies such as VapeElevate and other organizations all in the hopes of creating a treatment product for multiple sclerosis. At the end of last year and as confirmed by Cara from Vape Elevate, the company has announced their launch of “Phase III” where they’ll test their product for treating MS-associated damages.
3. “Cronos Group Inc.”
The third most popular organization for investing in cannabis stocks is Cronos Group. In September 2023, the company disclosed its financial results, and a lot of individuals were surprised to learn that their revenue doubled over the last year, and it totaled $11.35 million, which was a better result than what people anticipated.
Now, you should know, the EPS of $0.19 was also better than all the expectations by $0.25. This has caused hundreds of investors to be pleased with their results, and it has also caused the stocks to go up by 36% over three days of the company disclosing their financial reports and earnings.
4. “Aurora Cannabis Inc.”
Although a lot of investors disclosed long and unchanged positions in September last year, it’s worth mentioning that the company’s aggregated holdings when from $42 million to $9 million. Although a lot of people chose to unload their positions, the fall in the total funds can be attributed to an over 60 percent drop in the stocks seen in July, as well as September.
To deal with their financial problems, the company has started reconstructing it bit by bit in the summer of 2023. They announced cuts in various departments and it also decided to start operating in their manufacturing facilities in Canada as it would allow them to scale down on the production.
Keep in mind, they’re also planning on increasing their manufacturing processes in their facility in Europe in order to supply the growing European need and demand, however, it might also close some of the facilities in order to reduce the number of staff and processes within the organization.
5. “Canopy Growth Corp.”
This is, perhaps, one of the biggest cannabis organizations on Earth, and since all of their processes are extremely diverse and don’t only cover recreational and medicinal marijuana flower categories. Instead, they also cover beverages infused with cannabis, CBD, hemp, edibles, as well as vapes.
Besides their diverse business segments, the organization has also started partnering with some really famous individuals including Seth Rogen and Snoop Dogg. Additionally, they have also worked with Martha Stewart and they launched her branded Cannabidiol gummy bears, as well as her CBD oil and gel in America. However, they have started extending to European markets as well.
Before we conclude this article, it’s worth mentioning that you must ensure that you research the company you’re thinking about investing in completely and thoroughly. After all, you’ll be investing a lot of your funds, which is why you’ll want to do the research, and more importantly, keep an eye on an organization’s stocks for some time before choosing to invest.
By doing so, you’ll ensure that the business has steady growth over a specific period of time, meaning that you’ll rest assured that you won’t invest more than you can actually afford to. Keep in mind, stocks are completely versatile and they’re unpredictable, hence, researching everything can lead to strong results.
As you can see from the list above, there are various companies that you could choose to purchase cannabis stock from. Of course, the ones from the list above are only five or hundreds of companies out there, hence, you might want to do a bit more digging on the entire cannabis stock exchange market.
So, now that you’re aware of what companies you can choose to invest your money into, you might not want to lose any more of your time. Instead, you should open up your browser and start researching all of the options that you have and that you could choose to invest in.