The Best Marijuana Stocks for 2019
One of my favorite marijuana stocks is Canopy Growth Corp (NYSE:CGC). With CGC stock’s all-time high being reached and exceeded again and again, Canopy Growth is one of the premier stocks in the legal cannabis industry.
While Canopy Growth stock still has room to grow, it is unlikely to see 200% gains in a single year, due to its size. That’s where the best marijuana penny stocks come in.
While the marquee marijuana stocks are still great picks for long-term growth, investors seeking higher rates of return in a short time period will likely turn their heads toward penny stocks. Of course, with the increased chances of massive returns comes the added risk of volatility.
With recreational cannabis legalization in Canada—and more countries to follow in the future, certainly—alongside the massive injections of capital we have been seeing from parties interested in joining the marijuana rush (like Big Tobacco and Big Alcohol), these major events have the ability to send marijuana penny stocks shooting through the roof.
Two Solid Marijuana Penny Stocks for 2019
The marijuana industry is hitting a threshold at the top. What I mean by this is that the largest marijuana companies are beginning to reach a size that makes their impressive growth rates unlikely to continue apace.
After all, leaping from a $1.00 stock price to a $2.00 stock price is far easier than a $50.00 stock price jumping to $100.00, by virtue of the market cap that these prices imply.
With higher market caps comes slower movement in stocks, in general, due to the companies’ sizes.
Penny stocks, of course, are in the early stages of their growth, so it is by no means out of the ordinary to see them climb at rapid paces.
My investment strategy is almost always geared toward long-term picks. So while the marijuana stocks listed below feature the possibility of strong gains in the near future, they are also poised to be big players in the cannabis industry for years to come.
Hexo Stock Forecast
The first of my two favorite marijuana penny stocks for 2019 is Hexo Corp (OTCMKTS:HYYDF, TSE:HEXO).
This is one of the strongest marijuana companies around, and it is rather shocking that its share price remains around the $5.00 level.
Hexo has a lot going for it, but the main two drivers of its future growth are the company’s deal with the Quebec provincial government and its partnership with Molson Coors Brewing Co (NYSE:TAP).
The agreement with Quebec sees Hexo supplying the province with 200,000 kilograms of cannabis over a five-year period. (Source: “Hydropothecary reports fiscal 2018 third quarter results,” GlobeNewswire, June 28, 2018.)
This news was featured in a recent quarterly report that saw the company register strong financial numbers.
Chart courtesy of StockCharts.com
Furthermore, Hexo’s deal with Molson Coors has many analysts excited. The joint venture will see one of the largest alcohol producers on the planet create non-alcoholic, cannabis-infused beverages, with Hexo being its marijuana contact.
“Canada is breaking new ground in the cannabis sector and, as one of the country’s leading beverage companies, Molson Coors Canada has a unique opportunity to participate in this exciting and rapidly expanding consumer segment,” said Molson Coors President and CEO Frederic Landtmeters. (Source: “One of the world’s largest beer makers is about to start producing marijuana-infused drinks,” Business Insider, August 1, 2018.)
And they’ll be looking for Hexo to help that process along.
The positive Hexo stock forecast reflects the fact that it is one of only two major marijuana companies to have signed a partnership with Big Alcohol. The other is my favorite marijuana stock, Canopy Growth.
OrganiGram Stock Forecast
Another of my favorite marijuana penny stocks for 2019 is OrganiGram Holdings Inc (OTCMKTS:OGRMF, CVE:OGI).
OrganiGram stock first popped up on my radar due to its high price-to-earnings ratio, a great tool for predicting when a company is ready for gains.
Since then, it has only continued to impress.
Chart courtesy of StockCharts.com
OrganiGram’s most recent financial report was strong, with quarterly net sales hitting CA$3.7 million, compared to CA$1.9 million for the same period in 2017. Meanwhile, the nine-month net sales came in at CA$10.1 million, compared to CA$3.6 million in the same period in the previous year. (Source: “Organigram Announces Record Q3 Financial Results – Net Income of $2.8 Million for the Quarter,” OrganiGram Holdings Inc, July 30, 2018.)
The company has now put its capital to good use, investing in Germany’s burgeoning marijuana market.
OrganiGram recently bought a 25% stake in alpha-cannabis Pharma GmbH, giving it a foothold in what is sure to be an extremely profitable market in the near future as Germany continues to relax its laws on marijuana. (Source: “Organigram to Take 25% Stake in German Cannabis Company,” New Cannabis Ventures, October 17, 2018.)
This makes OrganiGram stock not only one of the best low-cost marijuana stocks at about $5.00, but also a strong pick for long-term growth.
The legal marijuana industry is maturing at an ever-quickening pace, but that doesn’t mean you’ve missed the boat if you’re a new investor.
There are still many strong marijuana stocks in their early stages that are projected to see strong growth for years to come.
When it comes to the best marijuana penny stocks for 2019, any further major investments from outside players or the opening of new markets via legalization is going to positively affect the marijuana industry as a whole—with low-cost marijuana stocks likely to benefit the most.
So when considering marijuana stocks for long-term investments, don’t rule out penny stocks, with the two mentioned above being great places to start looking.