With a great deal of hype surrounding cannabis stocks, news like legalization can provide the booster jab to the industry. Although the marijuana sector can be a bit tough to invest in. That’s considering how volatile it is, it can play out in one’s favor if we stick and familiarize ourselves with the industry. Some traders like to flip top marijuana stocks because their price movement is rather volatile. Therefore, it could create many opportunities for traders and investors…
Investors are putting up a list of the best cannabis stocks to buy as the marijuana space is benefiting from steps towards legalization. For the uninitiated, March seems like a good time to profit from the pot industry. This comes as more states are planning to launch their recreational marijuana markets. Following this, it’s likely that major federal cannabis reform could take place as well.
With all this in mind, buying pot stocks right now could provide investors an opportunity to potentially score big gains. According to research company BDSA, the global legal cannabis market will be worth $55.9 billion by 2026. To reach that size between now and then, it will have to grow at a compound annual rate of more than 17%. As things continue to progress with the pot industry, some analysts feel the industry could be seeing a strong rebound. Amongst them, Tilray (NASDAQ: TLRY) and Cresco Labs (OTCMKTS: CRLBF) appear to be among the top cannabis stocks to watch in March and beyond. But the question here is, which is the better bet?
Tilray is a pharmaceutical and cannabis company that is incorporated in the U.S. with primary operations headquartered in Ontario. The company was the first licensed producer of medical cannabis in the world to receive a Good Manufacturing Practices (GMP) certified in accordance with European Medicine Agency standards.
For those unfamiliar, it is one of the top marijuana companies in the world. And once its merger with Aphria (NASDAQ: APHA) completes later this year, Tilray could become a more exciting stock to have.
The company may have made some investors very rich back in 2018. That was when TLRY stock skyrocketed from below $25 to above $200. But the hype was short-lived for the company and the broader marijuana industry. After languishing in the single digits for pretty much all of 2020, TLRY stock has begun to show signs of life. It has shown a year-to-date gain of nearly 240%. That is even after the stock lost over half its value since its peak early last month.
Here’s How Tilray Could Potentially Bring Big Gains To Investors
Both Tilray and Aphria currently have a significant presence in the European market. Tilray’s low-cost cultivation and manufacturing facilities in Portugal are a strong point for the company. By growing and processing its cannabis in an EU country, Tilray could avoid tariffs that apply to imported products. On top of that, the merger could lead to the creation of the largest adult-use marijuana company globally in terms of revenue.
Source: TD Ameritrade TOS
More importantly, as Tilray’s brand recognition becomes stronger over time and consumers become more loyal, it won’t necessarily need to fight for a larger market share. Considering the positive synergy effect from the merger, the combined entity would not only achieve improved operating efficiency. What’s more, it will also have more cash to penetrate into new markets or develop new products compared to other industry players. All of the above would go a long way toward supporting earnings growth.
Cresco Labs (CRLBF)
A vertically integrated marijuana company, Cresco Labs is one of the largest multistate operators in the U.S. The company tops the rank as the largest wholesaler of branded marijuana products.
From medicinal marijuana to premium cannabis products for the discerning botanical enthusiasts, you name it, they have it. The past year has seen an amazing ride for CRLBF stock.
The company posted great third-quarter numbers through September 30. The company saw a…
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