Posted on

cbd oil stocks

Agrify is a pick-and-shovel investment that has been trading on the Nasdaq since Jan. 28. The company could be integral in helping cannabis businesses grow their operations since it provides indoor growing solutions. The company’s vertical farming units (VFUs) hold much of the promise; the company boasts that they are significantly more efficient than traditional cultivation and can deliver six times the yield. Plus, they can increase potency by approximately 29%. Agrify also has software that can help growers manage their crops and stay on top of planting schedules.

At a nearly $2 billion market cap, Ascend isn’t a small company, but there is potential for it to get much bigger. Investors can buy the stock over the counter and also on the Canadian Securities Exchange — where it first began trading on May 4. The company operates 16 stores and has the capacity to produce 38,000 pounds of cannabis annually.

Not only can Agrify potentially help companies scale their businesses, but the added efficiency could also improve a cultivator’s prospects at profitability. And some producers are taking notice. In July, the company announced a research and development deal with top multi-state operator Curaleaf Holdings that centers around the company’s VFUs and software platform. Getting an endorsement from Curaleaf could be what sends Agrify’s stock soaring.

1. Ascend Wellness

Are you looking for what could be the next big pot stock to invest in? As the industry grows in size and more markets open up, there are always new companies going public. For investors, it creates an opportunity to get in early on some potentially hot investments.

Today, the business operates in five states: Illinois, Michigan, Ohio, Massachusetts, and New Jersey. Of that list, Ohio is the only state that hasn’t legalized marijuana for recreational use yet. And in May, the company announced that it opened a second location in New Jersey, in an area that it estimates sees 100,000 vehicles each day. With just 13 medical dispensaries in the Garden State, Ascend Wellness is already making early moves to secure what could end up being some valuable real estate for the cannabis industry.

The growth from the New Jersey market will help make its already impressive numbers look even better. For the period ending March 31, Ascend Wellness reported sales of $66.1 million, which grew by a staggering 193% from the prior-year period. The company credits the growth to more store openings and increasing its production and cultivation. But what’s equally important is that on that revenue, it reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $15.8 million, for a margin of 24%. For the full year, the company estimates that its top line will come in between $320 million and $340 million — more than double the $144 million it reported in 2020.

What I like about the company is that its focus is on markets with significant opportunities where there isn’t much saturation. On its homepage, Ascend Wellness states that it “focuses on limited license states east of the Rockies, with flagship locations in desirable retail corridors serving key medical and adult-use markets.” I’m a big believer in keeping things simple and not trying to be overly aggressive in expansion, as that can drive costs up significantly and make profitability a long shot.

• GrowGeneration Corp (GRWG). Back in the day, hearing “hydroponics” made you instantly think of someone growing weed in their basement. Today, hydroponics is one of the top cultivation methods for the legal cannabis industry, and GrowGeneration stands as the leading supplier of hydroponic equipment in the U.S. Offering over 50 retail centers throughout the U.S., this young company (founded in 2014) is growing by leaps and bounds. No dividends as of yet, but a P/E ratio of 90.27 says that growth-oriented investors might find what they’re looking for.

• Global X Cannabis ETF (POTX). With the lowest expense ratio amongst the ETFs noted in this article (0.51%), this ETF also posts respectable returns in excess of 47% YTD early May 2021. This passively managed fund outperforms many of the actively managed funds above, making the combination of a lower expense ratio, better performance and a rare dividend yield of roughly • Amplify Seymour Cannabis ETF (CNBS). At the end of Q1 2021, this strictly cannabis ETF posted year-over-year returns of (gasp) 233%, but like most of this sector’s ETFs, it’s short on history—inception date: 2019—which gives investors little to go on for historical performance. However, with a low NAV in the $20 per share range, inventors can get a taste for the industry without risking a positive drug test at the workplace. Like other ETFs in the cannabis sector, the expense ratio is high (0.75%), but it does offer a rare dividend, currently • ETFMG Alternative Harvest ETF (MJ). Providing a YTD return of 45% as of early May 2020, this ETF that tracks the Alternative Harvest Index is no slouch. With an at-present highly accessible cost-per-share under $30, investors wanting to try the cannabis industry on for size can do so at a low price of entry. Shares come with a steep expense ratio for a passively managed ETF, though: 0.75%..101 per share..14 per share, as of writing, an attractive prospect for those looking to tap into cannabis sector growth.

Best Online Brokers 2021

Join over 8 million people and start investing your spare change for the future.

Choosing the right online broker is one of the most challenging decisions you’ll make as an investor. We spent six months testing 21 of the leading online brokers to identify the best of the best.

• Cara Therapeutics (CARA). How can you ignore a cannabis company posting quarter-over-quarter sales up a whopping 2,384%? No, there’s no decimal missing in that. This biotech company’s goal is better pain management, offering a quality of cannabis and CBD that advocates swear by. Cara has the smallest market cap of the stocks profiled in this article, and it boasts the largest returns. Investors might find a bargain buy here as shares currently trade near a 52-week low in the $12 per share range, down from the April 5, 2021, high of over $28 per share after news came out that one of its leading offerings showed poorer results in testing than expected.

On March 31, 2021, New York passed a law legalizing recreational cannabis, expanding medical use, and decriminalizing possession of small amounts of marijuana, among other measures. Not all of these provisions will go into effect immediately and there is no timeline yet on when all these measures will be fully implemented.

These are the marijuana stocks with the highest year-over-year (YOY) sales growth for the most recent quarter. Rising sales can help investors identify companies that are able to grow revenue organically or through other means, and find growing companies that have not yet reached profitability. In addition, earnings per share can be significantly influenced by accounting factors that may not reflect the overall strength of the business. However, sales growth can also be potentially misleading about the strength of a business, because growing sales on money-losing businesses can be harmful if the company has no plan to reach profitability.

Best Value Marijuana Stocks

These are the marijuana stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For companies in the early stages of development or industries suffering from major shocks, this can be substituted as a rough measure of a business’s value. A business with higher sales could eventually produce more profit when it achieves, or returns to, profitability. The P/S ratio shows how much you’re paying for the stock for each dollar of sales generated.

Here are the top 5 marijuana stocks with the best value, the fastest growth, and the most momentum.

The marijuana industry is made up of companies that either support or are engaged in the research, development, distribution, and sale of medical and recreational marijuana. Cannabis has begun to gain wider acceptance and has been legalized in a growing number of nations, states, and other jurisdictions for recreational, medicinal, and other uses. Some of the biggest companies in the marijuana industry include Canopy Growth Corp. (CGC), Cronos Group Inc. (CRON), and Tilray Inc. (TLRY). Many big marijuana companies have continued to post sizable net losses as they focus on investing in equipment to speed up revenue growth, which remained strong despite the economic disruption caused by the global pandemic.