The future looks bright for a number of marijuana stocks as public perception continues to shift, more U.S. states legalize medical marijuana, and demand for medical cannabis rises. Most noteworthy, Canada is a month and a half away from legalizing recreational marijuana.
With new cannabis growers and companies racing to join the sector, investors need discernment when choosing the best marijuana stocks to invest in. Here are some of the most current top picks among cannabis stocks:
#1 Marijuana stock: AmeriCann Inc (ACAN)
AmeriCann Inc (OTCMKTS:ACAN) is a good place for investors to turn for advice when seeking to get a handle on an industry that is unprecedented. This company primarily deals in real estate and servicing facilities, offering both administrative and logistical support for cannabis entrepreneurs. AmeriCann also offers the lucrative service of a division that specializes in cannabis license procurement for clients.
Under the current U.S. administration, AmeriCann has experienced the same waves as many of the top stocks in the marijuana industry. However, the company has gained momentum since April – with stock rising 61% – as key administration members seem to be shifting their hard stance toward marijuana legislation.
#2 Cannabis Stock: Aurora Cannabis Inc (ACBFF)
Canadian cannabis stock, Aurora Cannabis Inc (OTCMKTS:ACBFF), has a strong standing in the medical marijuana market. The company specializes in making medical-grade marijuana products accessible to patients for reasonable prices. In keeping with this corporate value of affordable access, Aurora offers free domestic shipping and flat-rate pricing that is deemed “compassionate.” The company complements this ethos with provision of a thorough network of medical doctors that are pro-cannabis for patients to contact.
Along with numerous other marijuana stocks, 2018 started off rocky for Aurora. The bad news is that the company’s year-to-date shares are 28% down. However, there is good news as well. Aurora stock has been stabilizing since the beginning of April.
#3 Marijuana Stock: American Cannabis Company Inc (AMMJ)
The genius of the lesser-discussed American Cannabis Company Inc (OTCMKTS:AMMJ) is the consulting service it provides to new marijuana-related businesses, helping to make the daunting journey of starting out in the industry more manageable. The company essentially acts as one-stop shopping for new cannabis entrepreneurs.
Leveraging its years of industry experience, American Cannabis Company steps in to help entrepreneurs through all phases of startup, beginning with license applications, market establishment and setup of a cultivation facility. More intermediate services include branding, marketing, and solutions for staffing.
From an investment standpoint, AMMJ leans more on the industry’s speculative side; however, company shares have seen relative stabilization since the beginning of February. Investors looking for marijuana stocks to buy may consider the risk worthwhile in light of the increase in positive industry, company shifts and sentiments.
#4 Cannabis Stock: Aphria Inc (APHQF)
Every so often, a marijuana stock comes around that isn’t a train wreck, fiscally speaking. Aphria Inc (OTCMKTS:APHQF) is an example of this kind of industry anomaly. The company’s specialty is medical marijuana, grown in a greenhouse, and this is a substantive generator of Aphria’s revenue growth. In three years, Aphria’s sales have inflated beyond 3,200%. Beyond that, the company has managed to produce positive net income in the past two years.
Where Aphria encounters speculation is with regards to market performance. On the basis of YTD performance, the company lost around 44%. However, Aphria’s financial performance promises far more good things to come. It may be worthwhile for investors to look past the company’s volatility, and purchase Aphria stock when it’s cheap.
#5 Marijuana Stock: General Cannabis Corp (CANN)
Certain advantages come with being a holding company in an industry that is still fairly young, such as the cannabis industry. With a number of subsidiaries, holding company General Cannabis Corp (OTCMKTS:CANN) can offer as many specialties as subsidiaries. Such a structure allows General Cannabis to diversify, all the while maintaining stability in its balance sheet.
According to the data, this structure appears to be paying off. In the recent four years, the company’s top-line sales have risen almost 1,400%; the recent quarter reported a revenue margin increase of 27% compared to the same quarter last year. Of equal importance, General Cannabis managed to minimize debt in its financing of operations.
Less impressive was General Cannabis’ market performance, which had shown a loss of nearly 46% on a YTD basis. As with other marijuana stocks in similar positions, however, the price action of the company’s stock began stabilizing in April.
#6 Cannabis Stock: CV Sciences Inc (CVSI)
CV Sciences Inc (OTCMKTS:CVSI), unlike the previous marijuana stocks, is a pharmaceutical company with a specialty in medical-grade CBD-based products. The company currently has alternative therapies awaiting regulatory approval.
CV Sciences’ purely medical approach is not only a refreshing alternative in a sector filled with unique concoctions, but its stock is turning investor heads for all the best reasons. Year-to-date statistics show the company’s shares up a healthy 14.4%, placing CVSI near the top of cannabis stocks to watch. Most of this increase came in the first half of last month, with potential for a great deal more upside.
In four years, CV Sciences has managed the feat of exceeding double its revenues. Furthermore, its latest quarterly report confirmed the company’s success, highlighted in the 125% increase in its top-line sales. In close connection, the company reported being in the black, finally, for quarterly net income.
CV Sciences stands out as not only having potential, but already demonstrating its ability to deliver.
#7 Marijuana Stock: Cara Therapeutics Inc (CARA)
Stability is not only uncommon among marijuana stocks; it is exceedingly rare among biotechnology firms. Cara Therapeutics Inc (NASDAQ:CARA) has somehow managed to achieve this delicate feat as both a marijuana stock, and a biotechnology firm.
CARA’s shares are currently down only 2.3% YTD, which is a win when investors consider the overall volatility of the sector so far this year. Even more, the company’s reduction of losses includes a recent dip of 7%.
For investors with longer-term interests, CARA may have valuable offerings. The biotech currently has research in the pipeline for a drug to suppress pain via cannabinoid receptors. Also to the credit of CARA’s management team, the biotech has a balance sheet that is both relatively clean, and boasts zero debt.
(For more marijuana stock recommendations, read A Quick Review of 7 Cannabis Stocks Cultivating An Unbelievable Amount of Green)