Pot Stocks Best Positioned to Bounce Back?
Anyone who tells you that things as they stand right now are going exactly as planned in the marijuana industry is lying. Across the board, we’re seeing major backsliding among our top pot stocks, with few coming out of this marijuana stock correction unscathed.
But the thing about cannabis stocks is that they always bounce back, stronger than ever. This makes the down times not only just a fleeting nuisance, but also a real opportunity to rake in some massive gains if you can get in at the right time.
With that in mind, we’ll be looking at the three top pot stocks that have the best chances for recovery in the coming months.
3 Top Pot Stocks for 2020
These top pot stocks were selected for a number of individual reasons, but there are some broad threads connecting them all.
The first is that each stock has rock-solid fundamentals. The leadership in place is strong and the company’s numbers (revenue, growth) are similarly solid.
This means that, not only is a faster recovery more likely for the stock, but it’s also less likely to suffer as grievously as its competitors in the next marijuana stock correction.
Another aspect of these companies that is appealing to investors is that each one of them is unique. Which is to say that each company fulfills a need in the market that few others are currently filling.
This makes these pot stocks prized investment opportunities with few competitors, another good omen for success.
The final important shared trait is that these stocks are also trading far below their recent highest price. That means, in due time, they will likely regain their highs as the marijuana market continues to expand.
We’ve hardly hit the maximum potential of the pot industry, considering that so few countries have legalized the drug, meaning that the best times are still ahead.
The old highs, then, are simply good benchmarks to aim for in the next few weeks and months. In other words, they have strong potential for, not only long-term gains, but also immense short-term ones.
With all that dispensed, let’s get to the top pot stocks poised for a rebound in 2020.
Chart courtesy of StockCharts.com
One marijuana company that I’ve had my eye on for a while now is OrganiGram Holdings Inc (NASDAQ:OGI).
The main reason is simple: this is a marijuana stock that many considered to be undervalued prior to the marijuana stock correction. The most recent downward adjustment in price makes OGI stock practically a steal, with a high likelihood for growth in the coming year.
OrganiGram operates in a strong position in the marijuana industry due to its size and strength when it comes to supply agreements, production capacity, and robust revenue.
The company’s outlook only looks better when you factor in the fact that this is very much a marijuana penny stock that is still small enough to be easily acquired by a larger competitor.
All of this makes for a very strong OrganiGram stock outlook in the coming months.
My OGI stock prediction sees it gaining 100% by the end of 2020, with the potential for even higher gains in that period.
Another marijuana penny stock, Curaleaf Holdings Inc (OTCMKTS:CURLF, CNSX:CURA), is in a very unique position due to the market it operates in: the United States.
Curaleaf is one of the few pot companies that has a large foothold in the legal marijuana markets of America.
Factor in that the company is planning to be the first legal weed company to hit $1.0 billion in sales, and that it has an ever-expanded list of facilities across the U.S., and you have one of the better marijuana stocks available right now.
The reason for this is simple: the company may be better positioned than any other to profit from the eventual federal U.S. marijuana legalization.
While many other companies will assuredly find ways to enter the newly legalized U.S. pot market, at the end of the day, CURLF stock will have a huge advantage over them, so it will likely be one of the more successful pot companies when legalization lands.
If you’re looking for a pot stock that is likely to see massive, exponential gains within the next five years, look no further.
The third marijuana stock on our list is unique in that it’s not a traditional marijuana stock. Instead, it’s a real estate investment trust (REIT), which essentially means it plays landlord to pot companies and profits immensely from the business.
I’m talking about Innovative Industrial Properties Inc (NYSE:IIPR).
All these marijuana companies require land to grow their crops, and Innovative Industrial Properties is in the business of leasing out that land.
Rising massively in 2019, IIPR stock is one of the few pot-related stocks that has come out of the marijuana stock correction relatively unscathed.
Having said that, Innovative Industrial Properties stock was still bruised in the recent past; right now it’s trading below its former high.
This means that marijuana investors looking to get in on one of the most solid pot stocks for a very decent price should strongly consider looking at IIPR stock right now.
On top of all the benefits already mentioned regarding Innovative Industrial Properties, REITs are mandated to distribute 90% of their profits back to shareholders in the form of dividends.
That means investors get both the growth potential and a healthy quarterly payout from IIPR stock—a winning combination.
The marijuana stock correction has hit hard; many cannabis stocks are down substantially over the past few months. But that in no way detracts from the overall potential that is still brimming within the industry.
In fact, we’ve seen several harsh marijuana stock corrections before, only for the pot stock market to bounce back stronger than ever. I see no reason why this time will be any different.
The top pot stocks, then, are those that are the most likely to rise the highest during the recovery. I believe that the three stocks discussed above are excellent candidates to be the top performers in the next marijuana stock market rush.