When investors think of marijuana stocks, they often only consider the top two or three companies by market cap. This mindset can have advantages, but it does deny the potential of other pot stocks to watch. Within the cannabis industry, we can rate pot stocks by their involvement in the industry. At the top, we have pure-play marijuana stocks. These companies are arguably the most involved, and for that reason, they have the most exposure to the market.
At the bottom, we have big institutional investors in the cannabis industry such as Altria Group Inc. (NYSE:MO) and Constellation Brands Inc. (NYSE:STZ). These companies are less involved, but they can still be considered marijuana stocks. In the middle of that, we have a lot of marijuana stocks to watch that have interesting business models and futures. Although not all pot stocks are valuable long term buys, some can be considered that with some avid research and dedication to finding out information about a given company. With that in mind, here are two marijuana stocks with limited involvement in the cannabis industry.A Biotech Marijuana Stock Working With Canna-Pharmaceuticals
AbbVie Inc. (NYSE:ABBV) is one of the leading biotech pot stocks to watch. ABBV stock has benefitted from the company’s creation of several groundbreakings, cannabis-utilizing drugs. AbbVie’s main cannabis pharmaceutical, Marinol, was created to help those suffering from intense nausea such as cancer or AIDS patients. And in only a few years, ABBV stock has seen a lot of attention from this drug. In addition to making cannabis pharmaceutical, AbbVie also works in several other fields such as oncology, virology and more.
This makes it a perfect candidate for investment in today’s world. With Covid on the rise, more and more investors are looking to take advantage of the investment opportunities that come with it. In addition, ABBV stock can be considered a safer choice at times due to the company’s size. Currently, ABBV stock has a market cap north of $140 billion which makes it a major stock in the cannabis industry. Although it is quite diversified in regard to its participation in cannabis, it remains a leading pot stock to watch.Another Leader In The Cannabis Industry
Constellation Brands Inc. (NYSE:STZ), is a major marijuana stock with little involvement in the actual cannabis industry. For those who don’t know, STZ stock has seen growth due to its leadership in the alcohol industry. But a few years ago, STZ stock became a marijuana stock after the company invested more than $4 billion into Canopy Growth Corp. (NYSE:CGC). With this, it has been able to help Canopy grow, as well as provide security for investors. Although it did take a while for Canopy to begin using these funds responsibly, soon enough it got its act together.
In the past few months, Canopy has shown itself to be a leader in the cannabis industry, due greatly to STZ stocks involvement in the company. For investors who may be scared of finding a marijuana stock to buy, STZ stock could provide some assurance in that regard. Because it is mainly an alcohol company, Constellation Brands is somewhat insulated from the cannabis industry and its volatility. With this in mind, STZ stock remains a marijuana stock to watch moving forward.