Canopy Growth: Could This Be the Best Marijuana Stock Right Now?

canopy stock forecast
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Best Marijuana Stock

At times like these—with marijuana stocks down due to a correction—it’s important to remember that the best play in the sector is the long game. While gains and losses will be volatile in the near future, the industry is only headed in one direction: up. With that in mind, the best marijuana stock around for those looking for both security and strong growth prospects is Canopy Growth Corp (NYSE:CGC).

Things have not been going well for CGC stock of late, but that’s no reason to abandon ship. In fact, now may be a great time to reconsider what I believe will be an extremely strong pick for years to come.

Canopy Growth stock was harmed by a weaker-than-expected quarterly report. The numbers showed impressive growth, but the positivity contained within the report was dampened by the heavy losses.

I’ve written at length about this and how CGC stock is going to recover. So instead of focusing on the near- and mid-term view, let’s take the long-term view on CGC stock.

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There is, frankly speaking, no other marijuana company that comes close to matching the assets that Canopy holds under its belt.

Chart courtesy of StockCharts.com

From very impressive supply agreements to an aggressive international expansion strategy that has seen the company gain footholds in several sure-to-be-prosperous markets in the future, you have a company that has situated itself better than most to take advantage of the huge potential remaining in the pot industry.

On top of this, you have a company that, compared to its competitors, is reliable.

Now, this is a relative term, of course. “Reliable” in the marijuana industry means something very different than, say, the banking sector. But in this case, Canopy Growth stock has proven itself time and again to be a consistent winner in both down times and boom times.

Consider that CGC stock is one of the few marijuana stocks to see significant gains in 2018.

While its rivals have made fractions of Canopy’s gains—and many have suffered losses this year overall—Canopy maintains a 40% year-to-date gain.

This means that Canopy is both a more reliable choice as well as being a very good bet to yield explosive gains, giving investors the best of both worlds.

It’s of course also worth repeating that Canopy is the main target of Constellation Brands, Inc. (NYSE:STZ), which has chosen it to be the flagship marijuana producer in the cannabis-infused beverages business.

Remember that Constellation singlehandedly sent the market on a run when it invested in Canopy earlier in the year. Expect to see more of that capital flow in as the partnership continues to mature and deepen.

Analyst Take

Canopy Growth stock is still the best pick in the industry, recent performance included.

Sure, it may be falling behind at the moment, but the future continues to look bright for what I consider to be the best marijuana stock available right now.