Top Marijuana Companies 2017
Looking for marijuana companies with high returns has become something of a craze in the market. After all, in 2016 we witnessed some huge growth in weed companies, some in the vicinity of 300% and above. Investors high on the pot market are looking for marijuana companies 2017 to deliver similar results. As such, there’s a good bit of buzz surrounding the top marijuana stocks and just how far they can go.
Some view the high profit marijuana companies as an emerging industry capable of creating overnight millionaires the way tech booms did in the late 2000s. And we all know the heavy cost of missing out. Figuring out how and when to invest in marijuana stocks is crucial to any investor looking to jump on the weed stock surge.
The opportunity to take advantage of a rapidly developing market in its embryonic stage doesn’t come along very often. Here’s a cautionary note: about a decade ago a Harvard student invited five people to his dorm to discuss a business opportunity. Of the five, only two showed up. That decision made them both billionaires (Dustin Moskovitz $9.9 billion and Eduardo Saverin $5.8 billion). You’ve probably seen The Social Network and can guess who the Harvard student was: Mark Zuckerberg.
While high profit marijuana companies aren’t exactly the next coming of Facebook Inc (NASDAQ:FB) and neither is Mark Zuckerberg about to offer you the deal of a lifetime, the point still stands: missing out on opportunities when they’re presented to you is killer.
With that in mind, marijuana companies 2017 are here and full of opportunity for the savvy investor to make strong returns from the green industry.
Before we get into the top marijuana stocks, let’s first get a lay of the land.
Weed has been, up to this point in time, a highly regulated substance in most parts of the developed world. Focusing in on the U.S., things do appear to be changing, but there’s quite a number of complications that investors ought to be aware of.
First, the good news. According to a Gallup, Inc. poll from October 2016, 60% of Americans now approve of legalizing marijuana. That’s the highest percentage recorded in 47 years that public approval of the drug has increased and this bodes well for the industry at large. The U.S., after all, is a giant market and if recreational marijuana legalization ever were to pass on a federal level (which I believe is inevitable, the only variable is the time frame), it would open up vast streams of revenue for the nascent industry. (Source: “Support for Legal Marijuana Use Up to 60% in U.S.,” Gallup, Inc., October 19, 2016.)
But here’s the catch: the U.S. federal government is not likely to make any strides in pro-marijuana lawmaking any time soon.
“Good people don’t smoke marijuana,” said Attorney General Jeff Sessions back in April, when he was still senator of Alabama. “There is more violence around marijuana than one would think.”
White House Press Secretary Spicer is no fan of pot either. “I do believe that you’ll see greater enforcement,” said Spicer during a press briefing in late February. “There’s a big difference between the medical use … [and] recreational use, which is something the Department of Justice will be further looking into.” (Source: “Marijuana sellers face uncertainty under Trump,” The Hill, March 8, 2017.)
U.S. President Donald Trump has been more muted on his stance concerning weed, but don’t expect any big changes in policy coming out of this administration, at least not positive ones for marijuana.
Things do brighten up quite a bit when looking at the state level. Along with the majority approval rate by citizens, states have begun putting through laws that make medicinal and recreational marijuana freely available. The industry earned an approximate $6.7 billion in legal sales last year, and that’s without the added revenue from the seven states that voted to legalize marijuana in one form or another in November of 2016.
That brings the total up to eight states that have legalized recreational marijuana use and 29 states that have voted to legalize medicinal marijuana. (Source: “What Jeff Sessions Said About Marijuana in His Attorney General Hearing,” Fortune, January 10, 2017.)
With that in mind, the political landscape is shifting around marijuana for both ill and good. But ultimately, it’s looking like the herb is going to be available sooner or later across the majority of the U.S., and that presents a great opportunity for investors to take advantage of marijuana companies with high returns.
Now let’s get on to the top marijuana stocks list.
Marijuana Companies List
|Company Ticker||Market Cap (millions)||YTD Stock Price Change (%)|
1. Canopy Growth Corp (TSE:WEED)
Besides having the best ticker in the pot business, Canopy Growth Corp (TSE:WEED) has a great many factors that make it one of the top marijuana stocks in 2017.
Based out of a former Hershey factory in a small Canadian town, Canopy Growth has gone on to command a dominant stake in the market with a $1.48 billion market cap, enough to blow many of its competitors away.
Canopy Growth stock has jumped 12.8% in 2017, which is by no means bad, but compare that to WEED stock’s explosive 12 month run of a 222% increase.
The shares have certainly slowed down some since its meteoric rise in October 2016, but that doesn’t mean there’s nowhere left for the company to grow. With a commanding position in the market and being poised to be one of the first companies to take advantage of mass legalization in developed nations, there’s plenty of reason to believe that Canopy Growth can be the weed stock to own.
But it’s not all sunshine for the bud producer. The company was looking towards the current Canadian federal government to come through on its election promise and begin the legalization process for marijuana. Unfortunately for Canopy Growth and pot bulls alike, the current administration seems to be slowing on its marijuana legalization time frame.
“We will take as much time as it takes to do it right,” said Blair in a recent interview. “I’m pretty reluctant to suggest a specific time frame, frankly, because I don’t know how long this will take in each of our 10 provinces and three territories.” (Source: “Marijuana stocks drop as Trudeau’s pot czar says Canada won’t rush into legalization,” The Globe and Mail, March 7, 2017.)
Marijuana companies 2017 and weed enthusiasts alike were hoping for a 2018 date for a law to be in place, but that doesn’t seem very likely at this point.
Canopy suffered a hit as a result from this news, and some analysts believe that WEED stock has hit its high-point, but all it takes is one big move towards legalization to send pot popping again, which makes Canopy Growth one of the top marijuana stocks due to its large market share and strong infrastructure in place. (Source: “Medical marijuana leader Canopy Growth is fully valued, says Canaccord Genuity,” Cantech Letter, March 16, 2017.)
2. Insys Therapeutics Inc (NASDAQ:INSY)
The skinny on Insys Therapeutics Inc (NASDAQ:INSY) is that it is one of the fastest growing companies, period.
Through the sale of “Syndros,” the only U.S. Food and Drug Administration (FDA)-approved drug to treat nausea and vomiting caused by chemotherapy, the company has found an untapped niche in the medical marijuana business.
The company’s stock jumped 10% since the beginning of 2017, and INSY stock in general is looking to make up for a poor 2016, where it underperformed.
But with a lot of focus on the recreational market opening up, the medicinal marijuana market is no less an exciting opportunity for investors. Less prone to political backlash and grandstanding, marijuana as a treatment has become a booming industry in recent years. Countries from Canada to Israel have begun introducing legislation to ease pot into their medical systems.
As such, a company like Insys has a great opportunity with its already-approved drug to jump in on these emerging markets.
On the Fortune list of the 100 fastest growing companies, Insys ranks fourth overall. The marijuana business is a definitive part of that potential. (Source: “Fortune 100,” Fortune, last accessed March 13, 2017.)
3. GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH)
GW Pharmaceuticals PLC- ADR (NASDAQ:GWPH) has been in the medicinal marijuana game for a long time now. Having researched cannabis-based treatments since 1990, there’s a strong pedigree there that should make investors feel comfortable with the company. (Source: “Top 4 Medicinal Marijuana Stocks to Watch for 2017 (ABBV, GWPH),” Investopedia, February 27, 2017.)
A promising new drug is also entering late stage trials. “Epidiolex” treats epileptic seizures. If it were to gain approval from the U.S. Food and Drug Administration, that could send GWPH stock flying.
It’s exactly this type of situation that usually sees biotech stocks jump, when they have a new product on the market on the precipice of success (approval) or failure (rejection) that can cause some investors nightmares. On the other hand, there are very few positions that will garner such a great return on investment.
Bottom Line on Top Marijuana Stocks
Having looked at the three top marijuana stocks currently available, remember that with huge potential comes great risk. The fledgling industry is largely dependent on political machinations churning forward towards legalization. If 2016 taught us anything, it’s that politics can be as volatile and unpredictable at the market itself. There is an intimate connection between the top marijuana companies and political proceedings.
Having said that, these three stock have huge potential to make some of the biggest gains we’ll see all year. Barring any drastic legislative rollbacks, marijuana will continue apace towards greater acceptance both recreationally and medicinally. And with that steady push will come great opportunities for investors to get in on what may be one of the hottest industries in years.