Today, few things seem surer than an investment in cannabis stocks. As legal barriers to cannabis fall in markets around the globe, tremendous opportunities are emerging for the knowledgeable investor. The cannabis sector’s legal and economic landscapes are rapidly shifting, making keeping up to date with the latest moves of the market a must. But the increasing popularity of investments in the cannabis industry means accurate and reliable information about the best cannabis stocks to watch can be hard to come by. So before you decide which weed stocks to buy, here are five top pot stocks to watch in 2018.
Understanding Which Cannabis Stocks To Watch
Understanding the cannabis stock market isn’t as easy as many might like to think. Complex legal and regulatory frameworks, the undeniable influence of the black market and the often unpredictable nature of the cultivation and production process have created instability in the legal weed market. In short, the cannabis industry, especially in the U.S., is vulnerable in ways no other industry is.
And that makes investors vulnerable as well. Pump and dump schemes are still too common in the industry. Investor pages are full of press releases hyping companies above their real value.
Due diligence is critical when researching potential top pot stocks to watch. And it’s at the basis of this list of five excellent cannabis stocks to watch this year. Since Canada’s federal market is now fully legal, we start with a pair of Canadian marijuana stocks to buy now. Then, we list our top pot stocks to watch in the U.S. in 2018, as more cannabis companies go public.
The Canadian Weed Stocks To Buy Now
Last month, Canada made history by becoming the second country in the world to federally legalize cannabis for adults. And the nation’s federal medical cannabis program has been thriving for years.
But contrary to popular opinion, some of Canada’s cannabis giants are suffering from slow growth. Sure, goliaths like Canopy Growth and Aurora Cannabis are worth investing in, but right now it can pay to look elsewhere.
CannTrust Holdings Inc. (TSX: TRST)
Here’s why it pays to know your markets. In Canada, the specific rules governing legal non-medical cannabis companies have been set by each individual province. In many provinces, government-run liquor boards are controlling the entire operation. And that means companies that secure provincial contracts will have exclusive access to the market.
CannTrust Holdings Inc. has secured three such contracts. Its cannabis will be sold in British Colombia, Alberta and Manitoba, each under their own brand. The company is set to produce over 37,000 pounds of cannabis each year.
The company’s success surprised even its owners and makes CannTrust Holdings one of the top weed stocks to buy in the rapidly expanding Canadian market.
Eve & Co Incorporated (TSX-V: EVE)
Across the cannabis industry, companies and customers are demanding diversity. Women have always been at the heart of cannabis culture, as growers, caregivers and innovators. Today, they’re also making their mark as business owners, making sure the cannabis industry doesn’t turn into a boys’ club.
Eve & Co Incorporated is one of our top cannabis stocks to watch in 2018. The company’s wholly-owned subsidiary, Natural Med Company, is the first-ever female-founded cannabis producer. And it’s also one of the companies the British Columbia Liquor Distribution Branch chose to supply the province with cannabis.
The company is also developing an additional 780,000 square feet of greenhouse space on top of the 220,000 it currently operates.
The Top Pot Stocks To Watch In The U.S.
In the United States, many of the most exciting opportunities are found in what investors call the “ancillary market”. These are companies that don’t touch the plant but are nonetheless vital to the industry’s functioning.
As legalization expands, so do the markets for these ancillary businesses, making them great weed stocks to buy. And because they don’t touch the plant, they’re much less at risk of breaking federal regulations.
Kush Bottles (NASDAQOTH: KSHB)
When the closing bell rang on July 12, Kush Bottles reported its 3Q operating results. They aren’t perfect, but they’re extremely exciting for investors seeking a company with sales growing at an exceptional rate.
Kush Bottles sales grew 173 percent on a year-over-year basis, going from $4.7 million a year ago to $12.9 million now. And that growth is organic. Vaporizer and cartridge products performed especially well. Kush Bottles, a marketing, packaging, branding and products company in the medical and adult-use cannabis sectors also acquired Summit Innovations in a deal that closed on May 3.
MedMen (CNSX: MMEN)
In the atmosphere of uncertainty surrounding legal cannabis in the United States, companies that can handle economic fluctuations make for sound investments. Attracting a very high level of attention for this very reason is MedMen.
MedMen recently became the largest U.S.-based cannabis stock ever to list in Canada. It has assets and operations in four states, including production and cultivation facilities.
MedMen has also garnered a reputation as a high-end retail dispensary, offering premium products and an up-scale consumer experience.
Furthermore, MedMen just went public on the Canadian stock exchange in a reverse takeover deal with Ladera Ventures. Trading under the stock ticker MMEN, the company has an implied enterprise valuation of $1.65 billion thanks to its latest funding drive of $110 million.
Maybe that valuation is a little lofty. Maybe it isn’t. But that’s exactly why this is one of the biggest cannabis stocks to watch this year.
Based On Performance This Year, These Are The Cannabis Stocks To Watch
The best weed stocks to buy half-way through the year are those that have put down impressive gains. Several companies have seen their stock skyrocket over the preceding months, and the best are directing their winnings toward expanding their facilities and moving into emerging markets.
MariMed (NASDAQOTH: MRMD)
Based on it’s incredible growth, MariMed is one of the most exciting pot stocks to watch right now. Just this year, MariMed stock has increased at an eye-catching 240 percent. 180 percent of those gains, however, came in the last quarter alone.
MariMed, a leading professional management company in the emerging U.S. cannabis market, also specializes in cannabis products and edibles. The company recently announced revenue of over $2 million, representing an 81 percent year-over-year increase.
MariMed is also moving into medical markets in Massachusetts and Maryland. The company will add a 68,000 square foot production facility in Massachusetts to its cultivation and production facility in Maryland.