Marijuana businesses are among some of the most popular and exciting publicly traded stocks on the market. Last year, the North American marijuana market sold $6.7 billion in product, an incredible 30% increase from the prior year. With Canada planning for the full legalization of marijuana next year, and the United States increasingly relaxing the country’s marijuana laws—even under the Trump administration—the marijuana industry’s trajectory seems to have but one direction: up.
But when it comes to stock trading, the trajectory of an industry alone isn’t enough to ensure profits. Even if you invest in a thriving industry, like wind energy, if the company in question is poorly managed and goes bankrupt, you could still lose money.
The stock market is notoriously difficult to predict, and nothing is guaranteed. But if you’re interested in investing, here are some of the top marijuana stocks currently on the market.
1. Canopy Growth Corp.
Canopy, which trades under the name WEED, has long been a favorite among marijuana investors. The Canadian company, based out of Ontario, is currently positioned to become the world’s leading marijuana business. Last year, the company was evaluated at an approximate 2 billion dollars. Constellation Brands, the parent company of Corona beer, also recently sunk $200 million into Canopy to acquire a 9.9 percent stake.
If Constellation is willing to gamble a couple hundred million dollars on Canopy, it’s probably not a bad idea to invest some money in the company yourself. And as far as marijuana stocks go, Canadian companies—thanks to the country’s pro-marijuana laws—are a relatively safe bet.
2. The Scott’s Miracle-Gro Company.
Scotts is not a marijuana company, per say, but it is one of the most committed marijuana-auxiliary companies in the United States. Scott’s describe themselves as “the world’s largest marketer of branded consumer lawn and garden products.” And the company’s CEO, Jim Hagedorn, has spoken at length about his company’s reorientation to capitalize on the nascent marijuana industry. As he says in an interview with Forbes, Hagedorn intends to “[i]nvest, like, half a billion in the pot business,” which he calls the “biggest thing I’ve ever seen in lawn and garden.”
Scott’s is currently the leading lobbyist on behalf of the marijuana industry, sinking $350,000 into the effort so far this year alone.
Scott’s is a company with a proven track record of success in the lawn and garden industry, and it is currently laser-focused on aligning themselves with the unprecedented growth of the marijuana industry. Therefore, if you’re looking to invest in marijuana stocks without putting money directly into a marijuana business, Scott’s is a good choice.
However, the company saw a downtick in revenues and income last quarter. Therefore, this is more of a long-term investment or company to keep a close eye on for now.
3. Constellation Brands
Like Scott’s, Constellation isn’t a direct marijuana stock so much as a marijuana-auxiliary stock. Constellation is a Fortune 500 alcohol company, most known for producing the beer Corona. The company’s stock price has seen a steady increase for the past five years, with a major spike after announcing its $200 million purchase of 9.9 percent of Canopy Growth Corp in late October.
Constellation has consistently played its cards right in the alcohol industry, and it’s now positioned to make some serious profit from its share in Canopy, which is soon to become the world’s leading marijuana corporation. So gambling on them twice, by investing in Constellation as well, could yield high profits.
Constellation is also planning to be the first major alcohol company to produce commercial marijuana-based beverages. This gives the company, as its CEO Rob Sands calls it, a “first-mover advantage.”