These days, a lot of people are looking for a sure bet when it comes to investing in stocks. One of the best industries showing historic levels of growth is the legal marijuana industry.
As legal cannabis use continues to gain popularity in the United States and Canada, as well as other countries around the globe, marijuana stocks are a good bet for a green investor… or even an experienced one.
As the use of legal weed has grown over the past decade, investors, stakeholders, and producers involved in this industry have tried to get their piece of the edible.
You should not let this opportunity pass you by.
Legalization in Canada is huge for cannabis stocks
The New York Times published an article in November 2017 regarding Canada’s upcoming legalization of recreational marijuana, scheduled for July 1, 2018. This means that, if you are willing to play the stock market, investing in pot stocks might be a great way for you to earn money.
In this article, we will discuss 7 hot pot stocks.
Cream of the Crop: 7 of the best cannabis stocks to invest in 2018
Constellation Brands, Inc. (NYSE:STZ)
Constellation Brands announced on October 30 that it had taken a 9.9% stake in Canopy Growth Corp (OTCMKTS:TWMJF) for a whopping CAD$245 million, including the option to grow that stake by exercising warrants in the future. Constellation Brands has a strong, tested leadership team that understands the emerging legal, regulatory, and economic landscape that promises to shape the future of weed stocks. Buying Constellation Brands stock is a great way to get started with cannabis stocks.
Scotts Miracle-Gro Co (NYSE:SMG)
Scotts Miracle-Gro is another great stock to consider. This Ohio based company has a future with the legal weed industry. Scotts Miracle-Gro Co contains a successful hydroponics business, which promises to grow even more as marijuana legalization increases in the United States and Canada.
Cree, Inc. (NASDAQ:CREE)
Cree is another great weed stock to consider. Cree, Inc., produces indoor and outdoor LED lighting. According to Mother Jones, one-third of marijuana in America is grown indoors using electricity equivalent to the power generated by 1.7 million homes.
Traditionally, a marijuana grow-op uses high-pressure sodium lights to grow the crop. These lights are less expensive than LED lights, but they use a lot more electricity, generate far more heat than their LED equivalent, and don’t last nearly as long.
As marijuana grows more mainstream, and the companies involved in the industry have become more financially stable. Both the concern over the environment and the lower ongoing costs has led to an interest in using LED lights. As this push continues, Cree, Inc., is likely to continue making money.
GW Pharmaceuticals PLC (NASDAQ:GWPH)
GWP a UK-based company, developed Epidiolex, which is a potential drug that uses purified cannabidiol (CBD) to treat rare child-onset epilepsy disorders. In 2017, GW Pharma filed is New Drug Application with the Food and Drug Administration, beginning the process of getting Epidiolex approved for sale in the United States.
Epidiolex has already been given the Fast Track designation from the FDA, but the drug must still be categorized by the Drug Enforcement Agency. GW Pharma remains cautiously optimistic about Epidiolex’s future, although bringing new drugs to market is not an easy process, and cannabinoid-based drugs receive even greater scrutiny.
Canopy Growth (TSE:WEED)
Canopy Growth is another hot pot stock. Canopy Growth, the world’s largest publicly traded cannabis company and the largest producer of medical marijuana in Canada, promises to see its revenue increase over the next few years if the legal cannabis market continues to grow. Canopy Growth is the major beneficiary of Constellation Brands’ diversification efforts, and Canopy Growth’s stock is up significantly.
Aphria Inc (OTCMKTS:APHQF)
Aphria is also a big player in the Canadian cannabis market, and it promises to expand beyond mmj stocks as Canada legalizes recreational marijuana. Aphria is profitable, which is uncommon in the medical marijuana industry, and indicates the success the company might have after Canada legalizes pot.
Aphria’s reputation as a low-cost producer of cannabis promises to help provincial governments meet public demand for legal marijuana while discouraging black market pot suppliers.
Horizons Marijuana Life Sciences Index ETF (TSX:HMMJ)
Horizons Marijuana is another good weed stock to consider buying, if you want to get into the cannabis stock market while it’s young. Horizons ETF’s top ten holdings include four of the pot stock companies discussed earlier in this article: Canopy Growth, Aphria, Scotts Miracle-Gro, and GW Pharma.
However, Horizons Marijuana Life Sciences Index can only be purchased through the Toronto Stock Exchange, which means that if you live outside of Canada, you will have to purchase the stocks with the help of a broker who can carry out trades on the Toronto Stock Exchange
If you want to spark a financial revolution in your portfolio, consider cannabis stocks for 2018!