What Marijuana Stocks to Invest in 2021
If you’re looking to make money with the cannabis industry, it may be time to consider investing in what marijuana stocks to buy in 2021. This sector is growing at a rapid pace and is set to double in value by 2025, creating a tremendous opportunity for new and existing companies. However, like any other industry, there are many risks to consider. Listed below are the best marijuana stocks to buy now and in the future. medical marijuana card fee erie county ny
Most marijuana stocks fall into the micro-cap and small-cap categories, with a market cap of less than $250 million. The companies with the largest market caps are the marijuana giants, but it’s still difficult to find profitable marijuana stocks. Because marijuana stocks are traded over the counter, investors don’t have to wait for a company to be listed on a major exchange to invest. Therefore, there are a number of penny stocks to consider, including those that trade at a discount.
Cannabis stocks shouldn’t comprise the bulk of your portfolio. Diversification is the key to long-term investing success. In general, you shouldn’t allocate more than 10% of your portfolio to marijuana companies, and concentrate on investing through low-cost index funds. However, if you’re looking to make money in marijuana stocks, consider investing in these companies through an ETF. You’ll be rewarded for your patience and careful analysis.
While cannabis stocks are becoming more widely popular in the United States, they still carry a number of risks. The political and legal uncertainty in the industry can wreak havoc on the stocks of marijuana companies. The Trump Administration has frequently seemed to want to roll back some of the gains made by the Obama Administration. This uncertainty has made marijuana stocks expensive and risky, but their valuations remain high. Even if the industry does reach profitability, too much production may sabotage their growth potential.
Curaleaf, for instance, is the largest U.S. cannabis company and its shares have recently traded within a narrow range of $13 to $18 per share. Its operations span over 20 states and boast more than 100 dispensaries, 20 cultivation sites, and thirty processing facilities. The company recently reported that its 2020 revenue is projected to be $626.6 million, nearly triple its revenue in the previous year.
Tilray is another marijuana stock to consider. Its focus on the cultivation, processing, and distribution of medical marijuana has helped it gain a global presence. The company is also the biggest marijuana company in Europe, and its deal with Hexo could eventually make it a major player in the U.S. cannabis retail space. However, some analysts have questioned Tilray’s approach. However, investors should be aware that there are risks with this stock, and it is important to know that your capital is at risk.
GW Pharmaceuticals is a biotechnology company with two decades of experience in the pharmaceutical industry. Its drug Sativex is already approved in 25 countries outside of the U.S. While the company is not profitable, it has a substantial amount of cash on hand. Its growth potential is so strong that the company is unlikely to fail in the near future. This is an excellent opportunity for investors to buy into the cannabis market at an early stage.