Cannabis stocks have had a tumultuous journey in recent years, with many investors experiencing significant losses. However, with federal legalization getting closer and market trends shifting, now may be the time to reconsider adding marijuana stocks to your portfolio.
One cannabis operator in the US is closer than ever to listing its shares on the Toronto Stock Exchange (TSX). This move could signal a significant shift in the industry, as it would make it easier for other cannabis companies to follow suit.
Despite the potential for growth, there hasn't been a lot of good news lately that would raise the shares of marijuana-connected stocks. Due to a continued glut of product, many companies are struggling to maintain profitability, and some have been forced to close their doors.
Here are three cannabis stocks that investors should probably downright avoid, given their issues and the trajectory of this sector. These include Canopy Growth Corporation, Aurora Cannabis Inc., and Tilray Inc. Each company has faced significant challenges in recent years, including leadership changes, legal battles, and declining revenues.
On the other hand, top cannabis stocks in June include SNDL Inc., TerrAscend Corp., and Curaleaf Holdings Inc., which together lead the industry in revenue. These companies have managed to weather the storm and continue to experience growth in the face of market challenges.
Investing in cannabis stocks requires careful risk management, as the industry is still in its early stages and highly volatile. While there are opportunities for significant gains, there are also significant risk. Understanding the market trends and keeping an eye on industry leaders can help investors make informed decisions.
One company that may be worth considering is Planet 13, which trades at a low price-to-tangible book value and is very reasonable relative to peers. This could make PLNHF stock a Buy for investors looking for a potential bargain in the cannabis industry.
It's been a rough year for cannabis company stocks, even as more states in the US move to legal or decriminalize marijuana. However, market trends are shifting, and there may be opportunities for growth in the near future.
On Wednesday, we began to see a separation between what Chairman of the Fed Powell said on fighting inflation and the inflation indicators. This could have significant implications for the cannabis industry, as inflation can impact consumer spending and overall market trends.
In conclusion, investing in cannabis stocks requires careful consideration and risk management. While there may be opportunities for significant gains, there are also significant risk. Understanding the market trends and keeping an eye on industry leaders can help investors make informed decisions. With federal legalization getting closer and market trends shifting, now may be the time to consider adding marijuana stocks to your portfolio.
