With so much going on inthe cannabis industry, it can be hard at times to keep up. But, as prudent investors, we must always be watching the news and researching given marijuana stocks to watch. Although companies like Canopy Growth Corp., Tilray Inc., and Cronos Group may be the most obvious choices for a pot stock to watch, there are plenty of options. The cannabis industry is extremely broad.
Within the industry, there are pot stocks to support every type of investor. This means that no matter what one’s investing style is, there may be a right pot stock for that person. On the other hand, finding the right marijuana stock to buy is a process that can take some time. Investors need to figure out several factors about a given company before investing. This means finding out what a company is doing to secure its future in the cannabis industry.
That could be future plans as well as any major developments that could lead to long term success. On the other hand, investors also need to know what a companies fundamentals are. This means researching its financials to find out debt, revenue, profits, and more. With these pieces of information, investors can begin to make educated decisions about which pot stocks may be right for then. All things considered, here are two marijuana stocks that are shifting investor’s expectations.
A Pot Stock With a New Future
HEXO Corp. is a major marijuana producer that has had a bumpy past few years. The company has several key aspects to its brand however, that could lead to potential future success. These include high quality cannabis, as well as low price marijuana. Both of these meet different needs in the market, and both could lead to long term success. In the past, we have seen that there has been room for both high and low priced cannabis. But, HEXO seems to be working on both fronts to gain as much revenue as possible. In Quebec, HEXO reportedly has more than a third of the entire market share.
Given that Quebec is the second largest province in Canada by population size, this is quite a good factor. In addition, HEXO has been showing some major growth in the past few months. So far in 2020, HEXO stock has been able to post revenue of around CA$74 million compared to last years CA$38 million in the same period. The company also has the capability to produce three times as much cannabis as it currently is which would be around 90,000 kilograms per year. In the past, HEXO stock has seen some bearish trading due to the company’s miscalculation of marijuana demand.
Despite this, it has managed to climb back in a big way over the past year or so. With around $27 million in debt, it looks like HEXO stock could begin to post some interesting results in the near future. The company stated that it expects to generate a positive operating income within the next 8 months or so. This would be a major step forward for HEXO stock, and is one of the main reasons that it continues to be a pot stock to watch.
An MSO Marijuana Stock With a Potentially Bright Future
Green Thumb Industries Inc. is one of the most consistent marijuana stocks in terms of performance and meeting expectations. Recently, GTBIF stock reported a positively adjusted EBITDA with 170% year over year revenue growth. This represents a dollar amount of around $120 million. In the second quarter of this year, the company also reported roughly 40% in EBITDA growth which is quite substantial. In its latest quarter, the company reported that it had around $83 million in cash on hand.
This is quite substantial and is around $11 million more than it had in the previous quarter. What this means is that the company has a lot of cash flow to impart big future changes. And with any cannabis business, changes are what keep the business afloat. Currently, GTBIF stock has benefitted from the company’s presence in 12 states around the U.S. Recently, it announced the opening of its 48th store located in Las Vegas, Nevada. In addition, the company has its products in almost 100 stores around the country, giving it an extremely broad market scope. For this reason, investors continue to believe in GTBIF stock as a pot stock to watch.
What This Means For the Future of The Cannabis Industry
The cannabis industry looks like it is in a good place to continue growing as of the past few months. With so much growth occurring from the increased cannabis demand, it appears as though many marijuana stocks are faring quite well. The hopes are that the momentum of major marijuana stocks can continue to increase into the next few years and beyond. Of course, with an election coming up anything could change. But for now, things continue to be looking good.