Maybe the stock and crypto markets are seeing nothing but red these days, but the cannabis market continues its upwards trajectory despite an economy wracked by hyperinflation, rising gas prices, and continued supply chain shortages. It seems new cannabis products are being introduced on a daily basis, from marijuana laced teas to marijuana bars at weddings.
One prominent cannabis dispensary and delivery company, Kolas, located near Sacramento, CA, is said to have set an “ambitious goal of tripling” its present footprint over the course of the next two years, despite what looks to be a major recession coming our way.
The company’s CEO says he is looking forward to the expansion challenge. Not only does Kolas operate six dispensaries and offer two different delivery options, but the company prides itself on providing industry education.
Fact is, the entire cannabis industry is said to be poised for significant growth in the coming years. According to a new financial report, the global legal recreational and medicinal marijuana industry is predicted to expand at a compound annual growth rate or CAGR of 25.5 percent over the course of the next eight years, or so states the San Francisco-based Grand View Research.
Said to have been ignited primarily by the COVID-19 pandemic and the associated stay-at-home mandates, the global cannabis industry is still spiking. Last year alone, the industry was worth an estimated $25,650.4 million.
With these projections in mind, people who are interested in investing in assets that promise considerable long-term growth would be amiss to forgo researching the best pot and cannabis-business related stocks presently available on the market. Here are just a few of them.
Aurora Cannabis Inc. (NASDAQ:ACB)
Said to be a leader in the global marijuana industry, Aurora Cannabis is active in 24 countries across five continents. They’ve reported more than $45 million in medical cannabis sales in the second quarter of 2022 which is said to represent 75 percent of their total income.
Financial experts say that Aurora has grown 180 percent over the past five years and is expected to continue a 25 percent annual growth on average over the next three years.
Canopy Growth Corporation (NASDAQ:CGC)
Canopy Growth Corp. along with its subsidiaries, manufacture, distribute, and sell hemp-based cannabis products for medicinal and recreation use in Germany, the U.S., and Canada. Spokespersons for the company are said to have announced new efforts geared toward decreasing expenses while increasing efficiency which should “speed the company’s path to profitability.”
Over the course of the next year and a half, management is intent on saving $30 to $50 million on the costs of goods or COGS while lowering SG&A by spending $70 to $100 million.
Innovative Industrial Properties, Inc. (NYSE:IIPR)
Based in Maryland, Innovative Industrial Properties, Inc., is said to focus on the acquisition, ownership, and management of properties that are leased to state licensed operators for government regulated medial cannabis use operations.
Recently the company went from “Buy” to “Hold” by Craig-Hallum analyst Eric Des Lauriers. With Innovative’s valuation having kept the company on the “sidelines” for some time, an April, 2022 report is said to have sparked a very strong underperformance vs its peers with shares currently trading at a discount.
Yet Innovative Industrial Properties along with Village Farms International and Canopy Growth Corp remain as notable cannabis firms to invest in today and for the future.
Curaleaf Holdings Inc. (CNSX:CURLF)
Solidly based in the U.S., Curaleaf Holdings, Inc. is a marijuana business that operates in two segments: Cannabis Operations and Non-Cannabis Operations. A recent report by Stone Fox Capital stated that Curaleaf Holdings is expected to generate a whopping $1.6 billion in revenue in 2022 with “good EBITDA margins.”
With the Curaleaf Holdings expected to have a banner second half of 2022, they have entered into what’s being called a “definitive agreement” to acquire Tryke Companies in a $286 million deal/stock transaction.
Cronos Group, Inc. (NASDAQ:CRON)
Cannabis manufacturer, Cronos Group, under its parent companies Lord Jones and Happy Brands, is said to manufacture, sell, and promote hemp-derived supplements along with cosmetics via retail, e-commerce, and hospitality partner channels in the U.S.
Cronos along with Ginkgo Bioworks, Inc. have recently announced a “strategic partnership” which will produce Cannaboids. They have also made public their plan to make a $100 million strategic investment by Altria Group, Inc.
Financial analysts have revealed that the 2021 fourth-quarter net revenue of the Cronos Group increased by over 50 percent to $25.8 million. Those projections are expected to increase throughout the entirety of 2022 and beyond.
