This past year has been one to forget for many cannabis stocks, and the bad news for many marijuana companies is that the worst may not be over yet. But these two stocks could see a lot of growth in 2020, and that could make these companies great buys heading into the new year…
1. Aphria
Aphria (NYSE:APHA) has been one of the few bright spots in the industry this year, as it has posted profits for two straight quarters. It’s been slowly making a name for itself as one of the safer buys in the industry. Despite sales growing by nearly 850% in its most recent earnings report, Aphria still recorded an operating profit, which is a rarity among pot stocks.
And the good news for investors is that there’s a lot more growth expected for the company, as Aphria recently obtained a cultivation license that will let it double its production capacity. If Aphria can continue growing at a high rate while also staying in the black, the stock could be destined for great results.
While Aphria’s stock has soundly outperformed the cannabis industry this year, it’s still fallen 8% year to date. That’s significantly better than the 36% losses that Horizons Marijuana Life Sciences incurred over the same period, but it’s still not a positive return for investors. But that can change in 2020, as the industry has the opportunity to start fresh with lower market caps to start the year. There’s also the potential for some more bullishness in the industry, as legalization could continue to progress in the U.S. while the cannabis market evolves in Canada and strengthens with more retailers.
Nearly a year ago, Aphria’s then-CEO Vic Neufeld stepped down from his position. Despite the uncertainty and question marks that followed, the company made a lot of progress since then as it looks to be in good control under interim CEO Irwin Simon. And as long as Aphria stays the course and keeps performing well, it may only be a matter of time before the stock starts to pick up some momentum.
2. Trulieve
Trulieve Cannabis (OTC:TCNNF) has also been an anomaly in the cannabis industry. With profits in each of the past four quarters, the company has…
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