3 Hot Cannabis Stocks That Should be on Your Watchlist

In recent times, most cannabis stocks slipped, with major manufacturers like Jushi Holdings and Curaleaf Holdings tanking 23.8% and 9.9%, respectively, in the past three-month period. Meanwhile, the broader S&P 500 has risen more than 5%. However…

it’s also true that the cannabis industry witnessed strong momentum prior to mid-February 2021. But now since cannabis companies haven’t been able to report earnings results as per expectations, their share prices took a beating and several marijuana investors are going through a rough patch at the moment. This has left many such investors speculating the fate of the cannabis industry in the near future.

With a degree of certainty, cannabis stocks won’t stay down for long.  In fact, historically, whenever cannabis stocks have lost drastically, it didn’t take much time to bounce back to stupendous heights. Thus, this trend implies that now is the time to keep an eye on cannabis stocks that are well-poised to gain momentum in the near term. Furthermore, such stocks are surely trading at a discounted price right now, which undoubtedly should excite investors.

And why won’t cannabis stocks gain momentum? In the United States, a series of regulatory updates proved quite helpful for the cannabis industry. Notable among these is the cannabis legalization draft released in summer by Senate Majority Leader Chuck Schumer that aims to get rid of the federal government’s ban on marijuana. The cannabis legalization bill, no doubt, has to go through a lot many bottlenecks but the sheer speculation that marijuana is going to be legalized will help cannabis stocks chug along in the near term and the pot industry should unquestionably fare well through this year.

The legalization of cannabis, by the way, is a long process as there are several issues that need to be addressed by marijuana companies as well as trade associations. However, since the majority of the population in the United States is in favor of legalizing marijuana in the form of medical or recreational usage, it is just a matter of time that there will be momentous reform in the cannabis industry. Some analysts, in the meantime, argue that simply passing a banking reform for the cannabis industry would have helped cannabis companies. But whatever may be the opinion, Congress in all likelihood will legalize the cannabis industry, and that’s certainly good news for cannabis stocks.

Let us also admit that the improvement in coronavirus-led expansion in delivery mechanisms and more curbside pickups will boost sales and revenues of cannabis companies in the days to come. Additionally, cannabis companies are entering a consolidation phase and are looking for product innovation, all of which bodes well for the marijuana industry.

Thus, as mentioned above, here’re three promising cannabis stocks that are worth a watch right now.

Tilray, Inc. TLRY is a pharmaceutical company. It develops cannabis-based medicines, drugs, drops and oil products. Tilray is a Canadian company, which intends to operate in the United States once the federal government legalizes marijuana. The company currently has a Zacks Rank #3 (Hold). The company’s expected earnings growth rate for the current and next year is 71.7% and 92.3%, respectively. Shares of Tilray have plunged 36.4% over the past three months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Innovative Industrial Properties, Inc. IIPR is a real estate investment trust. It is focused on the acquisition, ownership and management of specialized industrial properties leased to experienced, state-licensed operators for medical-use cannabis facilities. In this process, Innovative Industrial Properties is reaping rental income. The company currently has a Zacks Rank…

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