As the year comes to an end, potential investors are racing to discover which cannabis stocks to buy in 2020. The marijuana industry is always expanding, growing, and becoming more profitable. Since the value and demand for weed is skyrocketing, pot stocks can be an incredible investment. Cannabis sales are predicted to increase dramatically over the next few years across the entire globe. If you love smoking weed and making money, investing in the marijuana industry may be the perfect opportunity for you.
Which Cannabis Companies Are Good Investments?
The first step of buying cannabis stock is deciding which company to invest in and support. When researching companies, pay close attention to their ethics, business strategy, projections, and product line. Decide if you want to invest in THC, CBD, hemp, or lesser known cannabinoids like CBN.
Some marijuana companies focus on producing and distributing flower while others create secondary products like extracts and concentrations. Also, there are ancillary companies that focus on aspects of the industry like packaging, software, distribution, administration, and more. Your interests, goals, and personal preferences will determine which company you should invest in.
Cannabis Companies To Consider For Investment
If you want to invest in the cannabis industry, the following companies are good opportunities. Although this guide is a decent starting point, you should always do your own research or consult with trusted advisors before making financial decisions. This list of cannabis companies is presented in no particular order.
Auxly Cannabis Group Inc. (OTCMKTS: CBWTF)
Auxly Cannabis Group Inc. is an industry leader with a 3173% year over year growth, beginning from a small base in 2019. Recently, Auxly has opened a flagship retail location in Saskatchewan and has started producing CBD products. This company is predicted to have some of the fastest growing cannabis stock in 2020. Auxly is expanding rapidly and exciting investors with royalty deals and joint venture initiatives.
Aphria Inc. (NYSE: APHA)
Aphria Inc. produces cannabis products and strains for the medical marijuana community. Their products help patients manage a wide range of symptoms, including pain, inflammation, depression, anxiety, appetite disorders, sleep conditions, and more. Aphria Inc. produces their own cannabis flower, extracts, and oils. This company is interesting to potential investors who want to be involved with the medical aspect of the weed industry. Aphria Inc. anticipates that in 2020, they’ll see $708 million in sales and a 232% year on year growth.
Canopy Growth (NYSE: CGC)
Canopy Growth is one of the most successful marijuana companies in the world, with sales expected to grow quickly next year. Overall, a 234% year over year growth is expected. Canopy Growth is well known in the cannabis community for its celebrity and professional endorsements.
Influencers like Snoop Dogg, Seth Rogen, and Martha Stewart have all partnered with Canopy Growth. They’ve also paired up with Constellation Brands, the company responsible for beers like Corona and Modelo. Together, they plan on releasing cannabis-infused drinks.
HEXO Corp. (NYSE: HEXO)
HEXO Corp. is an award-winning cannabis company with a projected forecast of 425% year on year growth and $400 million in sales in 2020. This company is becoming well know in both the medical and recreational sectors of the marijuana market. HEXO Corp. produces strains of cannabis flower as well as creates extracts like oils, powders, and concentrates.
Aurora Cannabis (NYSE: ACB)
Aurora Cannabis is predicted to be one of the fastest growing cannabis stocks of 2020, with an estimated 171% year on year sales growth. This company has the potential to expand rapidly, since they distribute their products on a global scale. Aurora currently serve 22 different countries, and this number is expected to rise as legalization sweeps the globe. Aurora Cannabis leads the way with a variety of cannabis products, including flower, extracts, CBD, and marijuana accessories. Investors love Aurora Cannabis since they have been known to pay dividends to shareholders.
KushCo (NASDAQOTH: KSHB)
KushCo is a company that specializes in packaging cannabis products for the United States market. Buying stock in this company is a fantastic way for investors to get involved in the industry without directly interacting with marijuana plant material. KushCo manufactures and distributes a wide range of products, including tincture bottles, vape cartridges, and other containment packaging. Additionally, investors can consider their subsidiary company KushCo Energy, which sells CBD products.
Other Cannabis Stocks to Buy
These marijuana companies are making big moves in the industry and catching the attention of investors. Check out these companies if you want to buy weed stocks and make promising investments.
- Flowr Corp uses genetics to pinpoint premium products and protect itself from price pressures. The Wall Street predicts a 469% year over year sales growth.
- The Green Organic Dutchman has recently signed a massive extraction deal with Neptune Wellness. This company has an expected year on year growth of 517%.
- MedMen Enterprises plans on opening 30 retail stores in Florida for medical marijuana products. Their year over year growth is predicted to be 178%.
- Cronos Group is known for producing dried flower and cannabinoid extracts. This company expects sales to triple in 2020. A 223% year on year sales growth is the expectation.
- Cresco Labs has pending acquisitions with other distributors and more than 500 dispensaries across California. The expected year on year outcome is 161% for sales growth.
- Tinley Beverage produces cannabis-infused beverages focused on the Californian market.
- Origin House and Helix TCS are separate branding and distribution companies for cannabis products.
- Enwave is a Canadian company developing dehydration technology that can be used for foods, cannabis, and pharmaceuticals.
Are Cannabis Stocks Worth the Risks?
The cannabis industry is a profitable, exciting market with a huge potential for growth. Buying stocks may be risky, but the results can be incredible. In the end, investing in marijuana is a choice you have to make for yourself. Pot stocks have the potential to be extremely lucrative, or a disappointing failure. Always do ample research and use your best judgement when making financial decisions.
This article is not an endorsement of these companies or their stocks. Use this guide as a starting point to affordable stock options within the cannabis industry, but always do your own research. Please invest responsibly. This article does not represent the opinions of Dank or the author Philip on whether to buy, sell, or hold shares of a particular stock.