Looking To Invest In Cannabis? The Top Marijuana Stock Picks For 2023
Medical and recreational use of cannabis has been legalized in 37 states. There are many ways to invest in cannabis stock. Although cannabis is legal in many states, it is still illegal in some
More states have legalized cannabis for recreational use.
There is money to be made, with an estimated market size of $16.7 billion. The top marijuana stocks to look into and significant risks investors need to be aware of are listed here.
People seek relief from stress through cigarettes and alcohol. Even though they're legal, these two substances can harm the body. Cannabis is thought to be less harmful than alcohol and cigarettes because it has a variety of ingestion methods.
Users of cannabis want to keep their health up but can't check it out for a while. Compared to cigarettes and alcohol, consuming cannabis is associated with a lower risk of cancer and other diseases.
Cannabis has been found to reduce the side effects of drugs, help cancer patients with nausea, and increase the food intake of patients with HIV. Marijuana legalization and impact.
Marijuana was legalized for medical use in California in 1996. Both Colorado and Washington state legalized recreational marijuana in the same year. Medical use has been legalized in 37 states, and recreational use has been legalized in 21 states. Non-legal states have reduced their punishments for possessing small amounts of marijuana.
States that have legalized medical and recreational marijuana have seen a tax windfall. Marijuana money is now being earned by these states instead of being spent on other things. The taxes collected on the sales of recreational marijuana have helped many social services.
Colorado has brought in more than $2 billion of marijuana-related tax revenue in the last four years.
Weed tourism helps generate income for the state as people living in illegal states travel to a legal state to partake in cannabis.
Marijuana stocks are an excellent place to invest. Here are some things to consider when starting a position in a cannabis stock
The stock of Curaleaf is traded on the OTC market under the ticker symbol CURLF. There are 147 dispensaries and 29 cultivation sites for Curaleaf. It has strains and in-house products with different levels of cannabinoids. Over 6,000 team members work for it in the legal and medical marijuana industries. Whenever an opportunity arises, the company is looking to expand.
Its stock price can be volatile, with periods of high and low. The stock price went from a high of $8.90 to a low of $4 in less than two years. Curaleaf will have a power position to supply its product to the retail marketplace once the legal marijuana industry stabilizes. There is a company called Green Thumb Industries Inc.
Green Thumb makes and distributes packaged goods to cannabis retailers.
Through the use of cannabis, it seeks to improve the user's well-being and give back to the communities it serves. The company has retail stores in all 50 states. There are 77 retail locations and 18 manufacturing facilities in the United States. Green Thumb's revenue increased by 3% over the previous quarter and 12% over the year-ago quarter. It may be worth buying after a dip.
The products of Cresco Labs are sold through its wholesale and dispensary channels. The company has 21 grow facilities, 56 retail licenses, and 56 dispensaries. Cannabis products are sold alongside other natural non-cannabis health and wellbeing products at its retail stores.
While not as volatile, the stock of Cresco has been on a steady decline since the beginning of the year, falling from $8.25 in January to $2 at the beginning of the year. The outlook for the stock depends on the ability of the company to compete with larger operations. It may be possible to draw in a larger audience for its products.
Innovative Industrial Properties is a publicly traded company.
Innovative Industrial Properties focuses on buying, owning, and managing property leased to state-licensed cannabis operators.
The company owned more than 8 million square feet of rentable space. In 19 states, it has 2 million square feet under development. In terms of performance, the company's underlying purpose has been tried and true. Marijuana is still vulnerable to legal issues in its early stages. Three of its tenants are in default on their loan payments, which has brought its total rent collection to 92 percent.
Finding a replacement tenant with a narrow focus on the REIT is more challenging. Innovative lost its stock value when it warned about tenants who were not paying their rent. The company's stock value will be lost if more tenants default.
Scotts Miracle-Gro is a manufacturer of lawn and garden products. Jim Hagedorn, the CEO of Scotts, believes marijuana will be legalized in the United States. Even though growers know Miracle-Gro produces high-quality plants, the company was not allowed to market to them. Scotts bought companies that made products for the Hydroponics industry.
The outlook for Scotts Miracle-Gro is positive as more barriers to the growth of marijuana are broken down. The company has a broad demand for its products because it can be used for other purposes as well. There will always be a market for the cannabis elements needed to grow the plant if people want to develop their own. The stock price of Scotts is well positioned for future growth after a drop-off in 2022.
The growing and selling of cannabis is not something that Akerna is involved in.
Software solutions for inventory management are provided by it. Software revenue increased in the third quarter of the year, and total revenue increased as well. Transactions increased by 10% in the third quarter. After reaching a high of $30.40, the stock has declined. Most of the decline has come from a weak stock market and the diminishing hope that the Biden administration would make marijuana legal in the US. The stock trended south when this didn't come true.
There is a risk of investing in cannabis stock.
Marijuana is still illegal on the federal level, even though a few states have legalized it. There are obstacles for businesses in the cannabis industry. There are strict banking regulations when it comes to drugs. Marijuana companies can use a credit union or state-chartered bank if they choose. Paying workers can be a problem. Many credit card issuers won't work with these cannabis companies, so they tend to be cash-only operations. The growth of cannabis companies can be impacted by this. This is a risk that investors should be aware of.
Investing in an exchange-traded fund that owns multiple companies would be a good way to diversify the risk. Artificial intelligence is used to spot market trends and base its investments on them. In addition to cannabis, this kit invests in gambling, alcohol, tobacco, and sex-positive companies.
There is a bottom line. As more states allow the use of cannabis for recreational purposes, the industry should grow. As the industry consolidates, small brands and manufacturers will either be bought by more extensive operations or go out of business. Investors need to research and invest in the best of the breed to ensure they have the best chance of growing their investment dollars. Q.ai gives access to investment strategies powered by artificial intelligence.