Cannabis is a fast-growing plant with the potential to bring you lots of joy. Similarly, the cannabis industry is a fast-growing sector with the potential to make you loads of money. Even if you know a lot about weed, it can seem impossible to find the right investments. Do not worry: Where to start investing is a pervasive problem in all sectors. Nobody wants to feel like they are betting on their financial security. This list of cannabis stocks will start making marijuana work for you.
This list of marijuana companies includes tried investments and companies piquing the interest of experienced investors. Light up a joint, peruse this list, and become financially savvy. Now, while you are enjoying the literal fruits of the cannabis industry, you can also get a slice of the sector’s unprecedented profitability. Even if you do not plan on investing, this stock selection will help you learn about what is happening in the industry. These are the top cannabis stocks to buy for 2021.
Columbia Care (CCHWF)
Columbia Care is a brand of weed products and dispensaries formed in 2012. Its headquarters is in New York, NY. Columbia Care has dispensaries in at least 13 locations across the U.S., giving it a piece of many markets. Columbia Care has locations in states with new legal cannabis markets as well. Being ready to open shop in states with newly legalized weed gives them an advantage as a company. Columbia Care is set to see growth this year.
Columbia Care has a model of vertical integration, which is great to see in any industry. This means it controls quality from seed to sale. It does this by having a hand in cultivation, product creation, and dispensaries. It has also made stunning moves as a company recently, including the acquisition of The Green Solution. Before the purchase, The Green Solution was the chief vertically integrated cannabis company in Colorado.
Columbia Care has been around for eight years, which means it is a tested brand. Eight years is a long time in a market as fresh as cannabis. Columbia Care does not seem to be going anywhere. Professional investors believe that it might double its sales in the coming year. This means that it is a solid company to invest in.
Cresco Labs (CRLBF)
Cresco Labs is a Chicago-based company formed in 2013. Involved in cannabis cultivation, production, and distribution, Cresco has a vertically integrated business model. Its reliability in the industry makes it a good investment as well.
Cresco specializes in recreational and medical cannabis products for consumer use. Cresco offers an array of products, like prerolled joints and oil cartridges. It also has 29 retail locations in six U.S. states called Sunnyside. Cresco’s ability to grow in small markets and control every aspect of production has come from keen marketing and business moves. This company was making moves before it was known that its home state would legalize marijuana. With a keen eye for innovation, Cresco has been busy making money this past year.
Cresco saw massive increases in revenue last year. It has more than tripled its revenue growth. This is a likely explanation for the fast growth exhibited by its stock. With so much potential, this investment appears to be sound. It should be expected that Cresco will continue to grow and expand as a company and continue to make stockholders happy.
Curaleaf Holdings, Inc. (CURLF)
Curaleaf Holdings, Inc. is a behemoth of a cannabis company, to put it lightly. It has been in the industry since 2010 and has its headquarters in Wakefield, Massachusetts. In the 10 years since its inception, Curaleaf has grown to become a massive holding company that operates through many acquired subsidiaries. Curaleaf is clearly a stock to follow.
Curaleaf does it all on an impressive scale. As of July 2020, when it acquired rival company Grassroots Cannabis, Curaleaf operates 135 dispensaries. It also has 30 facilities for turning marijuana into consumer products and 23 growing operations. Curaleaf is growing on a total of 1.6 million square feet. This is a tight operation that delivers weed in more than 20 regional markets.
Curaleaf appears to have doubled its revenue in 2020, which might interest potential investors. The choice to invest in Curaleaf is a choice to invest in a company with 10 years of experience and lots of assets to put that knowledge to work. It is a company that seems unable to quit growing. There is no reason to doubt that trend will continue.
Green Thumb Industries (GTBIF)
Green Thumb Industries is a marijuana industry titan. Based in Illinois, this company has been in operation since 2002. In this time, it has become a staple in the cannabis production field and the cannabis retail market. Green Thumb Industries has developed trusted brands and lines of high-quality cannabis. It has a vertical integration business model, which means it exists in the growing and cultivating side of cannabis.
Green Thumb Industries has five different retail operation brands and even more brands of cannabis products. This gives it coverage in most U.S. states where there is a market for legalized marijuana. It also has brands of pre-rolled joints, vape pens, balms and topicals, edibles, and pretty much any form of cannabis you can imagine. This means that when customers enter a Green Thumb store, they are likely buying a Green Thumbs Industries brand.
Green Thumb’s strong revenue growth in 2020 translated into strong stock growth. As one of the largest cannabis brands, it stands to benefit from the U.S. federal legalization, which experts think could happen soon. It is also one of the big U.S. weed brands predicted to post a profit in 2021. This company definitely seems like a rock-steady investment.
GrowGeneration Corp. (GRWG)
GrowGeneration is a company to keep your eye on in 2021. Founded in 2008, this Denver-based company sells agricultural devices for home growers and retailers alike. Besides helping customers grow the dankest bud, GrowGeneration is a fast-growing business itself. It has made recent acquisitions that lend it an increased capacity to earn and grow.
GrowGeneration sells everything needed to grow marijuana. It offers lights, fans, filters, monitors, and just about anything hydroponic. It also sells soil and harvesting equipment. GrowGeneration is truly a one-stop shop for all things weed growing. It operates retail locations in more than five U.S. states, making it recognizable and accessible to consumers. The breadth of products and foothold in both the online and brick-and-mortar retail markets make GrowGeneration quite a powerful company.
GrowGeneration marked 2020 with financial success. It posted the highest return for a cannabis stock in the year, seeing more than 800% 12-month trailing total return. It also acquired seven assets to improve its operations. In November, GrowGeneration bought the retail chain GrowBiz. In December, it acquired Grassroots Hydroponics. These are similar horticulture retail chains that focus on cannabis growing. Acquisitions like these paired with stellar returns make GrowGeneration a sought-after investment.
Hexo is a producer of cannabis products formed in 2013. Hexo has its headquarters in Ottawa. It has a hand in growing weed and distributing dried flowers, oil, hash, and most derivatives of cannabis. It is a company to watch as a prudent investor. It also should pique the interest of people who follow innovations in cannabis. Hexo is no stranger to novel cannabis commodities, which might be why its stock performs well.
Hexo performed exceedingly well in the past three months. To investors, this upswing seems to be just starting. Hexo has experienced unprecedented growth in its short life. It is the largest supplier of hash in Canada and the largest weed grower in Quebec. In the past year, Hexo has become the leader in cannabis-beverages in Canada. In conjunction with Molson Coors Brewing, Hexo developed cannabis-infused drinks under the name Truss Beverages.
Hexo’s ability to innovate and grow each year is what makes it a safe investment for 2021. It dominates at what it does and shows no signs of slowing down. Each new year brings growth in sales and a reduction in costs. Improvements at Hexo mean more money for shareholders.
Jushi Holdings Inc. (JUSHF)
Jushi is a brand in the United States that seems to do it all. Jushi has a national retail operation. It also has a personal line of cannabis brands and deals with growing and cultivating cannabis. Its vertically integrated model is simplistic. It provides a breath of fresh air in the industry.
The reason Jushi is the stock to watch in 2021 is its choice of where to operate. Its primary operations are in Illinois, Virginia, and Pennsylvania, where it benefits from little competition and fast growth. Its foothold in these U.S. states means it sees growth as they do. For Pennsylvania and Illinois, where weed has been legal for a few years, Jushi has developed a growing clientele. With Virginia’s new market for marijuana retail, Jushi’s future in the state looks promising. It already has retail locations in the state and is looking to open several more this year.
Wall Street investors have good reason to believe that Jushi will be the fastest grower of 2021. This two-year-old company has wowed investors and industry followers so far. Jushi and its shareholders have a bright future ahead of them.
Tilray is a Canadian medical cannabis company with global operations. Tilray took form in 2013. It has headquarters in Toronto and operates in the United States, New Zealand, Europe, and Latin America. Its stock soared this past quarter, and its plans for 2021 make it an asset to invest in now.
A planned merger with Aphria (APHA), Canada’s highest-revenue producing pot grower, will be a boon for shareholders of either company. Aphria-Tilray will continue to trade as Tilray. The merger will create the largest weed company worldwide. The combined revenue for both companies in 2020 was C$874 million. They announced this merger in December 2020, and it will occur in 2021.
This stock is considered a sound investment for other reasons as well. After the merger, Tilray will hold the largest market share of weed in Canada. That share includes products like flowers, oils, pre-rolled joints, edibles, and beverages. Aphria even acquired SweetWater Brewing recently. There are talks that the company might produce weed-infused beer.
In all, Tilray is a company to watch this year. It continues to grow in the global medical marijuana and recreational marijuana markets simultaneously. If you only invest in one marijuana company, it might have to be this one.
Village Farms International Inc. (VFF.TO)
Village Farms International is a unique member of this list. It is a Canada-based agricultural company formed in 1989. It has spent most of its existence producing fruits and veggies, like tomatoes and cucumbers. Recently, Village Farms has expanded into the cannabis production business and is being lauded as a company to watch in 2021.
Village Farms International’s ability to transition to cannabis production from traditional farming was because it did not farm traditionally. Its line of produce is greenhouse-grown. This translates well to producing the more finicky cannabis plant. Village Farms is likely to do big things in the world of cannabis growing.
Village Farms acquired Pure Sunfarms Corporation from Emerald Health Therapeutics. Pure Sunfarms is an extremely successful Canadian cannabis company that brought Village Farms into the cannabis industry with a bang. This acquisition was completed in November 2020 and has put Village Farms in a great position to be one of Canada’s primary cannabis producers.
Investors consider Village Farms International to be a high-value investment. It has a 3.4 price to sale ratio (P/S). This means investors are willing to pay about three times what they expect the revenue per share will be, roughly speaking. This makes it a stock that has a lot of investor interest. P/S ratio is a necessary measurement for companies in their early growth periods. Village Farms International might not be a typical cannabis company, but it should still make a smart investment.