Looking to make an overnight fortune in Marijuana stocks? I have selected the top marijuana stocks to buy in 2018 based on their market cap and share prices.
Before looking at which marijuana stocks to invest in/the best right time to buy a stock, let’s take a brief look at the market growth of marijuana over the years.
In the past few years, marijuana stocks have continued to skyrocket. Every year, numerous legislations are passed to give people access to both medical and recreational use of Marijuana and Cannabis-related products.
According to a cannabis research agency – ArcView, the sales of legal marijuana is expected to reach $24.5bn by 2021.
It’s no longer a secret that smart investors want to take advantage of the coming boom of this industry. With that being said, here are the best marijuana stocks in 2018 that have the potential to yield significant gains.
Top Marijuana Stocks
Said to be the first cannabis company to receive a license in Quebec and so far have been deep-rooted in the national capital region. Quebec is known for being more isolationist than, most, if not all other provinces. To that effect, there’s the belief that Quebec will put up a big fight to protect Hydropothecary against competition with its people ultimately obtaining brand loyalty to its largest grower.
The company was established in August 2013 by Sébastien St-Louis and Adam Miron. Currently, the company produces 3,600 kg of cannabis per year in a 50,000 sq. Ft. facility.
By December 2018, they will have close to 1.3 million square ft. of greenhouses, and we will be capable of producing a massive 108,000 kg of cannabis per year. Also, they have cut their production costs for each gram down to half – placing them firmly below a projected 1$ mark.
Hydropothecary has done a great job in branding their products for suitability and acceptance in the luxury market. They are more focused on non-smokables which include products like THC tablets and elixir sprays.
Figure 1: Hydropothecary stock chart since 2013 | Market Cap $745.18M
GW Pharmaceuticals PLC (GWPH)
GW is a pharmaceutical company based in the United Kingdom. The company is known to engage in the development of cannabinoid therapeutics. They developed the world’s first prescription medicine, derived from the cannabis plant, Sativex®.
The drug is on the verge of approval for remedying spasticity caused by multiple sclerosis in more than 30 countries outside of the U.S.
Furthermore, the company’s chief product Epidiolex – a cannabidiol – is being examined for rare and severe drug-resistant epilepsy syndromes.
It is worthy to note that GW Pharmaceuticals shares rose 18.13 percent last year.
Figure 2: GW market growth in the last 5 years. | Market cap $3.80B
AbbVie Inc. (ABBV)
Another pharmaceutical company which appears to be ahead of its counterparts. Only because it already has a marijuana-based medication on the market. Food and Drug Administration (FDA) has already approved Marinol, a drug that prevents or alleviate nausea and vomiting in chemotherapy patients. The drug is said to also help patients with AIDS who have lost their appetite to eat.
It is worthy to note that Marinol isn’t the flagship drug of AbbVie. In fact, the drug isn’t even the company’s biggest seller. The FDA has already approved a drug that helps alleviate vomiting and nausea in chemotherapy patients. The drug also helps patients with AIDS who have lost their appetite to eat. It is worthy to note that Marinol isn’t the flagship drug of AbbVie. In fact, the drug isn’t even the company’s biggest seller.
AbbVie Inc has reported increased revenue growth in the last four years. In 2017, AbbVie recorded revenue of 28.22 billion USD. Additionally, there has been a steady improvement in the company’s operating income.
However, the risk of owning AbbVie is the fact that it is based almost entirely in U.S. markets, while other pharmaceutical companies market worldwide. Investors believe that the stock could see a drop in value if the domestic market experiences a drop. Moreover, for investors, this risk in cost due to depreciation is offset by the dividend.
Figure 3 AbbVie stock chart since 2013 | Market Cap : $148.66B | Average Volume: 7,176,521| EPS (TTM): $3.30 | Dividend and Yield: $4.84 (4.18%)
Canopy Growth (TWMJF)
This company is expected to gain from medical and recreational marijuana in the U.S. and Canada. According to a January 3 press release from the company, Canopy Growth formerly Tweed Marijuana Inc, has about 5.6 million square ft. of different cannabis-growing operations.
If you’re looking for another positive catalyst, look no further as Constellation Brands picked up a 9.9 percent stake in Canopy not long ago. The company is made up of other subsidiaries like Tweed Farms, Bedrocan Cannabis Corp, Mettrum Health Corp, Vert. Medical, Annabis Medical among others. Constellation Brand is working with the aim of bringing a cannabis-based drink to the market.
Also, in 2017, their stock was up about 247 percent and recorded a revenue of 31 million USD in the same year.
Figure 4: Canopy stock chart since 2014 | Market Cap: $5.62B
This company has already made headway by going into partnerships with two of the big names in the Cannabis industry – Aurora Cannabis and Emerald Health Botanicals.
These companies mainly focus on b2b sales and from what it seems, they will be an asset to bigger companies for the amount of supply that will be needed when marijuana legalization comes into effect.
Unlike other companies, they have decided to place themselves in the unique position of being b2b sales instead of b2c sales which give them a strategic advantage over their competitors.
With a price value of 5.5, this company is still very much undervalued. With the purchase of a share, investors will get a substantial amount of equity. When it comes to working capital and converting debt and investment to value generating assets. Supreme Pharmaceuticals has been stellar. Between 2016 and 2017, they went from having 5M in holdings to 60M – taking little debt during that period.
Figure 5: Supreme Pharmaceuticals stock chart | Market Cap: $423.21M
INSYS Therapeutics, Inc. (INSY)
Even though this company markets a lot of non-cannabis drugs. It has started the process of developing a synthetic cannabis drug capable of treating childhood epilepsy.
The company is also working on a spray technology that will deliver pharmaceutical cannabinoids.
In the past three years, INSYS has had to combat with flat revenues, but its operating income indicated a sharp drop at the end of 2016 because the company spent more time and resources in conducting research studies.
However, gross profit is higher now than it was three years ago.
Throughout October of last year, the stock fell sharply below prior support levels ($9 per share) and then started moving sideways at only $5 per share. The stock had an upturn in fortunes in
December and into the New Year (value of over $13). But, it’s now under $6.
This company’s stocks have been volatile, and most investors wouldn’t want to see this.
But, the action is acceptable because this is a biotech stock.
Figure 6: Insys stock chart since 1997 | Market Cap: 527.90M | Average Volume: 1,426,372 EPS (TTM): -$3.16 | Dividend and Yield: N/A (N/A)
Medreleaf Corp. (MEDFF)
Voted Top Licensed Producer at the Lift Canadian Cannabis Awards, 2017. This company has since been on an undeniable expansion spree. In January of this year, Medreleaf Corp. disclosed a collaboration with CANACCORD Genuity and GMP Securities. It will place 3.8 million units of the company at a price of $26.50 for each group – with the aim of raising gross proceeds to $100.7 million.
They plan to use the net proceeds to support the purchase and establishment of additional cannabis production and manufacturing equipment and facilities. They also hope to create new sales and marketing initiatives.
With its low production costs, increased capacity and a focus on high-quality cannabis, the company are well placed to remain a convincing opportunity to profit from any boom in the marijuana industry.
The company’s shares were also up a staggering 149 percent in 2017. No doubt, this is a marijuana stock to buy as the market growth looks promising.
Figure 7: MedReleaf stock chart | Market Cap $2.01B
Cronos Group Inc. (CRON)
In February this year, Canada-based Cronos Group became the paramount cannabis “plant-touching” company to be listed on NASDAQ. Also, the company produces and distributes medical marijuana to different countries, i.e. Germany, Australia and Israel.
Cronos Group’s decision to move to NASDAQ from the OTC market – where their shares traded as American Depository Receipts – saw its stock rise more than 20%. Unlike its operation in other countries, Cronos’ big challenge is that marijuana is still illegal in the United States at the federal level. For a company that is devoid of active operations in the country and that operates in a sector with the probability of tighter regulations, it might be a close spot for investors.
However, their continued rise in other countries should ease this fear. In Figure 8 below, the market growth shows how promising this marijuana stock is. CRON is recorded to have an
Average Volume of 4,239,321 and EPS (TTM): $0.01
Although there is no information for now as per Dividend and Yield.
Figure 8: Cronos stock chart from 2015-2018 | Market Cap: $1.061 billion.
So why are these the top marijuana stocks considered the best to buy in 2018?. Simply put, the net income of these companies have had steady growth over the years. In other words, the stock prices and the market cap are most likely to increase as a result.
To be on the right side of it all, you have to filter out those that are performing below par. Also, as the laws on marijuana becomes extricated soon. You’ll need to make your own interpretation and judgment, then decide which of these stocks will thrive overtime.
For people looking to profit from the pot business,this is the time to buy stocks. There are other ventures identified with the pot business that are worth looking into. But at the moment, marijuana stocks are very promising penny stocks. that are growing and will soon go up in smoke once marijuana becomes legalized.