Looking for long term cannabis stocks to buy? 2 to watch in June
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May 31, 2021
5 min read
This story originally appeared on MarijuanaStocks
Investing in the Cannabis Industry in 2021
Are you looking for marijuana stocks to buy before it is legally federal in the United States? At present, there are many companies with potential for investors. In the first quarter of 2021, many large U.S. cannabis companies have experienced significant revenue growth so far this year. In addition, these companies have also given a revenue forecast for 2021 which projects substantial growth for the period.
Over the past two years, cannabis companies have grown across the United States at a rapid rate. Now that federal cannabis reform is set to be reintroduced on Capitol Hill, investors could see a federally legal cannabis industry in 2021. Due to this possibility, more traders are focusing on the cannabis industry in June. looking for the best marijuana stocks to invest in. Currently, there are some cannabis stocks that could generate significant gains for investors in the near future.
After several months of declining market value, the month of May brought some upward momentum in the cannabis industry. While many pot stocks are still trading well below highs they hit in February, the upside shows potential for gains in June. But before investing in cannabis stocks, there are a few things to consider. On the one hand, the cannabis industry is known to be one of the most volatile parts of the market.
Major Marijuana Stocks and Market Volatility
This volatility can be seen in many vertically integrated marijuana stocks in the market. But some stocks have shown more stability in the market for investors. One of those areas is ancillary marijuana stocks. In general, ancillary cannabis companies are companies that support the cannabis industry without touching the plant itself.
As the cannabis market continues to grow, these companies are growing alongside the industry. For investors looking for long-term positions, these cannabis stocks offer less market fluctuation for traders. In some cases, they also offer a dividend to encourage shareholders to invest for the long term.
With that in mind, we can look for options to purchase cannabis stocks that are ancillary marijuana companies. In June, those marijuana stocks may continue to rise in the market as things move forward with cannabis reform. At the moment, these files. Marijuana stocks could trade at levels that are likely to generate gains in 2021. For this reason, let’s take a look at two of the best marijuana stocks to invest in for the long term.
Marijuana stocks to watch
Innovative Industrial Properties, Inc.
Currently, one of the only real estate investment trusts that focuses on the licensed cannabis industry in the United States is Innovative Industrial Properties, Inc. Currently, IIP owns 72 properties in 19 States of the country. In May, IIP announced the completion of several acquisitions including properties in Pennsylvania and Massachusetts, expanding its leases. Following the purchases, IIP will enter into a long-term triple net head lease for the properties.
Earlier in May, IIP reported its first quarter 2021 results with total revenue of around $ 42.9 million, a 103% year-over-year increase. In addition, IIP paid a quarterly dividend of $ 1.32 per share on April 15.e. Overall, IIP continues to drive revenue growth primarily through the acquisition and rental of new properties. As the United States continues to open up new markets at the state level, IIP is urged to partner with leading medical operators serving as a source of capital for their growing and processing facilities.
IIPR action closed on May 28e to $ 180.23, down 1.58% year-to-date. Over the past 3 years, IIIPR stock has given investors a total return of 444.44%. In February, the stock hit a new high of $ 222.08 and is up 4.17% in the past five days. According to analysts at CNN Business IIPR, the stock has a 12-month median price target of $ 219.00 per share. Essentially, this would represent an increase of 21.66% from current levels. Due to this stock IIPR could be a the best marijuana stocks to buy for a long-term investment.
One company that recently reported a record first quarter for 2021 is GrowGeneration Corp. Currently, the company has 55 organic garden centers in 12 states. The company operates specialty hydroponic and organic gardening retail outlets. In the first quarter of 2021, the company increased revenue 173% to $ 90 million. One factor that contributed to the growth was comparable store sales, which increased 51% year over year. Equally important, GrowGen raised its revenue forecast to $ 450-470 million and its Adjusted EBITDA forecast from $ 54 million to $ 58 million.
E-commerce is another area in which the business is experiencing significant growth. Specifically, revenue increased 126% to $ 4.4 million from $ 1.9 million in 2020. Currently, in 2021, GrowGen expects to have 60 garden centers in 15 states. In fact, the company expects to have over 100 operating locations in the United States by 2026. GrowGen continues to expand its footprint and could be an important part of cannabis cultivation for years to come.
GRWG share is up 10.42% year-to-date and closed on May 28e $ 44.41. In February, GRWG stock hit a high of $ 67.75 and is up 19% in the past five days. Over the long term, the GRWG share has generated total returns of 832.98% over the past 3 years. According to analysts at Tip Ranks, GRWG stock has a 12-month average price target of $ 54.00 per share. This represents an increase of 21.59% from current trading levels. With that in mind, the GRWG stock could be a best marijuana stock to add to your watchlist in June.