It does not matter what your own opinion is about the pending legalization of cannabis. The truth is that many companies selling the product have opened up across the United States and in other parts of the world. This means that there is a new stream of customers coming into the marketplace each year. When a company legally enters this particular industry, they find that the field is wide open for them. There is not a great deal of competition, leaving the door open for quite a few companies to do quite well. This is why you might want to consider investing in cannabis stocks in the coming year. It does matter what companies you look to, however, as not all are equally positioned to generate the kind of returns that could interest you. To help guide you, we have put together the following list of 10 cannabis stocks that you may want to consider purchasing in 2020.
10. Aleafia Health
This is a company that operates in Canada. They make it their business to cultivate cannabis and they also do a great deal of research, along with providing products to a number of medical clinics across the region. They have seen the sales of their product increase by 43 percent in the recent quarter. The use of cannabis among adults in the areas that they serve has also gone up by about 53 percent. This makes the company well positioned for growth a good stock to consider in the coming year.
9. 1933 industries
Here is a company that is based in Vancouver. It is about to move into a brand new facility that will increase its size roughly 10 times over. They are also about to enter the cannabis market in California. This is going to increase their revenue substantially and that makes it an attractive investment in 2020.
8. One World Pharma
One World Pharma is licensed in Las Vegas. They actually grow their product in Colombia, which makes them rather unique among the other companies on this list. They have a leg in the Latin American market in addition to the grown North American market. This allows them to work both sides of the hemisphere is a way that not many other cannabis companies today are able to do.
7. ETFMG Alternative Harvest ETF
This is an exchange traded fund that is doing quite well. It has a very low expense ratio. Its objective is to invest in more than 30 different cannabis companies around the world. This type of balanced portfolio has served them extremely well, making them a most attractive stock to consider purchasing in 2020.
6. The Cannabis ETF
Here is another exchanged traded fund that you will want to consider investing in. It has an even lower expense ration that ETFMG Alternative Harvest. It currently holds a position in 37 different cannabis stocks. The fund looks toward companies that are able to demonstrate a history of returning value to their shareholders. This fund should continue to do well in the coming years as it keeps it portfolio well diversified.
5. Origin House
You will find that this is a major cannabis distributor doing business in the state of California. They have been able to assemble a product line that is well over 50. They are licensed by 70 percent of the approved dispensaries in the state. This has enabled them to achieve a $7.7 billion revenue goal in the next three years. As such, they are a great investment to make at the current time. They sell their own brands, which includes their profit margin. This means bigger returns for its investors.
4. Liberty Health Sciences
This company currently has a small presence in the cannabis market. As such, you might wonder why it is so high on this list. The reason is that they are about to enter the market in a big time way. Right now, they are producers of medical cannabis. They service the state of Florida, which looks to be the third largest consumer base in North America in the coming years. They are slated to have a 25 percent share of the market by 2022.
3. KushCo Holdings
This is a firm that has become the biggest supplier of cannabis related packing equipment and supplies in the United States. They have assembled quite the product line in recent years. This includes vaporizers, bottle pop tops, tubes, and much more. These items are specifically geared for the growing cannabis industry. Since they are one of the few players in the field, they are slated to continue to grow. This is particularly true as they entire the marketplace in Europe.
2. Innovative Industrial Properties
This company actually made a name for itself by creating a series of REIT’s. It has since diversified to enter the cannabis industry, and they are already doing extremely well. They aim to have more than $1 billion invested in the field by the year 2022. With the growth that they are already experiencing, this is a stock worth buying into now.
1. Constellation Brands
This is a company has long been in the adult beverage market, so entering the cannabis market was a natural addition. As such, they are number one on our list. They recently acquired a 38 percent stake in Canopy Growth. This has already positioned them to become the biggest producer of Cannabis in Canada.
These are ten companies that are positioned well for noticeable gains in the coming years. It is important to do your own research and determine your own level of risk when it comes to investing in this sector. At the end of the day, it would be helpful to look through the trends that are occurring in this sector of the economy and then determine the extent to which you want to develop your portfolio in this area. This information should at least get you started on the path to making a reasoned and rational decision moving forward.