With so many options for investing in marijuana stocks, only a few have shown real potential. These companies have a mixture of solid financials and a solid plan for the future. But, there are a large range of cannabis stocks that do fit into these categories in one way or another. The easiest way to find a pot stock to watch is through research. When searching through indexes of cannabis stocks, we first have to look into a company’s financials. This is where we can find everything from debt amounts to free cash and more.
With this information, we can begin to make educated assumptions about where a pot stock could be headed in the near future. And although the future is more uncertain than it has been in a long time, we do know that the cannabis industry is growing. How fast and how much it will grow is only a projection at this point in time, but growth usually occurs swiftly in the cannabis industry. With this in mind, here are two interesting marijuana stocks to watch for the near future.The Biggest Marijuana Stock In The Industry
Canopy Growth Corp. (NYSE:CGC) is widely regarded as being the largest marijuana stock in the cannabis industry. Although CGC stock has had some issues, it still remains a pot stock with a great deal of potential. Investors often compare CGC stock to other major pot stocks like Aphria Inc. (NYSE:APHA) and Tilray Inc. (NASDAQ:TLRY), but it is quite a different company. Because of its size, CGC stock offers investors a wide breadth of market coverage. The company participates in many different areas of the cannabis industry.
But, it’s main business is still growing cannabis flower. In the past year or so, Canopy Growth has undergone a great deal of changes. This includes changes to leadership as well as its business model. But, with a $4 billion backing investment from Constellation Brands Inc. (NYSE:STZ), Canopy has sustained constant growth. In addition, this investment has helped to make investors more comfortable with the future of Canopy. Because the company has all of the funds it needs to grow, it has been able to do so quite easily. Investors should keep in mind that CGC stock is quite volatile, but it does remain a marijuana stock to watch.Another Cannabis Industry Leader
Aurora Cannabis Inc. (NYSE:ACB) is another one of the largest marijuana stocks in the industry. Similar to Canopy Growth, ACB stock has been known to be quite volatile. Recently, ACB stock saw a great deal of bullish momentum after reporting better than expected earnings. Because of its cost saving measures in combination with increased market demand, ACB stock was able to shoot up by quite a large percentage. Currently, ACB stock is trading at around the $10 mark. This makes it quite a cheap pot stock to watch with a great deal of potential.
In addition, Aurora Cannabis has proven that it has the wit to match demand with production. This means that investors have become more comfortable with the future of ACB stock. But as stated before, because it is a large marijuana stock, it is subject to quite a lot of volatility. This volatility can be a good thing for some investors, but for others it can mean short term instability. Regardless, Aurora Cannabis remains an interesting marijuana stock to watch for the near and long term.