With the growing interest in the cannabis industry, here are nine medical marijuana stocks to keep your eye on this year.
9 Medical Marijuana Stocks to Watch Out for in 2019
What Is Market Cap?
Market Capitalization (or market cap) is the total dollar market value of a company’s outstanding shares. In short, a company’s market cap serves as a gauge for the size of a company.
The size of a company is a basic determinant that interests investors, including risk. So, by knowing the market cap, one may presume a lot of information about the company.
The following stocks are some of the top medical marijuana stocks to keep a close eye on, according to Investor Place and The Motley Fool.
1. Aurora Cannabis Incorporated (ACB)
- Market Cap: $6.97 B
- Fiscal Q1 2019 Revenue: $29.7 M
Aurora, according to the Investor Place, is set to become one of 2019’s best medical marijuana stocks to buy.
It has a current estimated annual production of 570,000 kilograms. This number may grow as the company continues efforts in increasing their production capacity.
Aside from its production ability, Aurora is developing investor relations. Back in September of 2018, talks of an ACB and Coca-Cola partnership made the news.
2. Canopy Growth Corporation (CGC)
- Market Cap: $9.757 B
- Fiscal Q2 2019 Revenue: $23.3 M
Canopy Growth started way back in April 2014. The company has the goal of becoming the number one cannabis company in the world.
Canopy Growth has not only been active in innovation but also in business. One such notable business move is its partnering up with Constellation Brands.
Constellation Brands, the company behind Corona beer, began the partnership with a $4B investment.
This investment is bound to develop this year. In fact, it has already produced positive results for both companies.
Given these opportunities for the company, and its multi-faceted product and service line, it will be no surprise if Canopy Growth Incorporation continues to be one of the top medical marijuana stocks for the year ahead.
3. Cronos Group Incorporated (CRON)
- Market Cap: $2.179 B
- Q2 2018 Revenue: $3.39 M
Another Canadian medical marijuana stock to watch out for is that of the Cronos Group Incorporated.
In contrast to its fellow Canadian medical marijuana retailers mentioned above, Cronos certainly has a lower production ability. But, Cronos is still growing and is developing operations worldwide.
Furthermore, the company owns three core assets, two of which are 100% owned. Another good reason to keep an eye out for this cannabis group happened in December 2018, when Altria Group announced that it will be buying a 45% stake in Cronos Group Incorporated. Altria Group is a group with subsidiaries such as Philip Morris USA, Incorporated.
Because of this $1.8 B deal, Cronos Group has a better capacity to increase its production capabilities to a more competitive level.
With Cronos’ capacity for growth, it is a cannabis company that one must check out this year.
4. Innovative Industrial Properties (IIPR)
- Market Cap: $485.48 M
- Q3 2018 Revenue: $3.9 M
Innovative Industrial Properties (IIPR) is a US-based medical marijuana real estate company founded back in 2016. IIPR’s services focus on providing real estate leasing services to marijuana retailers in the US.
As a company that operates as a real estate investment trust, IIPR has the privilege of being the first cannabis company listed on a major exchange. For investors, revenue through rental payments from IIPR’s customers is a safer option.
IIPR provides a creative solution for its customers on marijuana-centric real estate problems. Aside from that, they have a solid foundation and business model.
For these reasons, IIPR may prove to be a profitable investment throughout this year.
5. MariMed (MRMD)
- Market Cap: $735.65 M
- Q3 2018 Revenue: $3.4 M
MariMed fulfills the need for consultation services in the medical marijuana industry. Also, for interested investors, the company provides stability.
MariMed is arguably one of the best performing medical marijuana companies of 2018. With a 371% gain, shareholders may agree.
Aside from a significant gain last year, MariMed has also made significant investments. Firstly, it acquired the BSC Group.
Secondly, it made a $30 M investment in a company that specializes in the production of hemp-based CBD.
With the 2018 Farm Bill’s passing into law, the hemp market has a lot more room to grow this year. Due to these factors, MariMed appears as a stable and healthy investment for the coming year.
6. KushCo Holdings (KSHB)
- Market Cap: $569.41 M
- Fiscal Q1 2019 Revenue: $18.76 M
KushCo Holdings provides packaging services and supplies to the medical marijuana industry. As the packaging service of choice for most of the companies within the cannabis industry, KushCo has possibilities for big growth this year.
With the legalization of medical marijuana in other European countries, KushCo has an avenue for expansion as the go-to packaging for marijuana for more than just Canada. As a result, this may put KushCo Holdings ahead of possible emerging competitors within the industry.
7. Liberty Health Sciences (LHSIF)
- Market Cap: $348.81 M
- Q3 2018 Revenue: $3.2 M
By 2022, analysts have predicted that Florida may be one of the top marijuana markets in the United States. This serves as an opportunity for the local medical marijuana producers and dispensaries of Florida such as Liberty Health Sciences.
Liberty Health Sciences is one of 14 licensed producers in Florida. Yet, it is important to note that they are also expanding to other U.S. states.
8. Origin House (ORHOF)
- Market Cap: $459.04 M
- Q3 2018 Revenue: $6.6 M
Origin House is another medical marijuana stock to watch out for. With its strong foothold in the California cannabis market, it is tough to beat.
As a company based in Canada, it is also planning its growth not only in other U.S. states but also in its home base. Recently, the company acquired a vaporizer retailer which will help in the company’s expansion within Canada.
With that said, there is a reason why, according to The Motley Fool, Origin House could be one of the top-performing yet low-lying medical marijuana stocks of 2019.
9. Tilray (TLRY)
- Market Cap: $8.94 B
- Q2 2018 Revenue: $9.7 M
Although Tilray may not be one of the top three choices, despite a whopping $8.94B market cap (as of the writing of this post), it is still something to look out for.
Barclay, one of the world’s leading banking institutions, increased its shares in medical marijuana stocks last year. Consequently, one of the companies who benefited from that is Tilray.
Because of that, it may be best to keep an ear and an eye out for this company. This year may bring more opportunities for Tilray.
How to Invest in Medical Marijuana Inside Your IRA
Want to learn how to invest in marijuana inside your IRA? Get our free guide here!
There are many opportunities for interested investors in the marijuana industry. But as with any investment, always consider the complexities associated.
Thus, plan ahead and investigate how this alternative stock investment works inside your IRA. As medical marijuana stocks are a young industry, it is best to consider how you invest in them.
Investing in medical marijuana stocks is like any other investment. Although it has the potential for benefits, one must know their retirement budget well.
One must read up on important information about their chosen company. Also, have a good gauge of one’s risk tolerance.
Complexities for this industry are definitely abounding so arming yourself with the right tools and information are the best defense one can have.
Have you invested in any medical marijuana stocks? Which cannabis company do you think is a good investment this 2019? Talk to us and share your thoughts in the comments section below!
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