6 Hottest Marijuana Stocks – Perfect For Beginner Investors

“The value of the Marijuana industry is estimated to reach 300 billion USD by 2030”.

While tech billionaires aim for heights in the space travel industry, investors are looking for a different high. 

The high that cannabis stocks give to the bank balance. Marijuana stocks are one of the hot topics in the stock market these days. 

With the growth of this billion-dollar industry, the interest of investors in these stocks is also increasing. 

Do you also plan to invest in marijuana stocks but don’t know where to start? 

Let’s start by giving you a brief introduction to these stocks. After which, we will share with you the hottest marijuana stocks you can consider investing in 2021. 

Here we go.

What Are Marijuana Stocks?

Marijuana stocks, also known as cannabis or weed stocks, are the stocks of companies that lie under the following categories:

  • Growers And Retailers

Companies that are into the business of growing cannabis and distributing marijuana-made products come into this category. Some of these companies also operate retail store chains.

  • Cannabis Biotechs

Cannabis Biotechs includes companies whose major business operation is to develop drugs from compounds – like CBD or THC – that are found in cannabis or hemp plants. 

These are also the firms whose stocks are traded in high volume in the marijuana industry compared to the growers and retailers.

  • Suppliers

The marijuana industry is growing immensely, and due to which the demand for marijuana is also increasing. To support the growth of cannabis biotechs, growers and retailers need more supplies like lighting systems, packaging products, and marketing. 

So the companies that come under the supply category offer services stocksand products for such industry-specific needs.

Top 6 Hottest Marijuana Stocks To Invest In 2021 – 

#1 Green Thumb Industries Inc. (OTCQX: GTBIF)

Green Thumb Industries Inc holds the licenses for around 96 retail cannabis locations. In addition, it owns 13 manufacturing facilities and 12 retail stores. So if we talk about the growth of this company, they are growing fast. 

And so does their stock.

In 2020, this company gained its share price when Illinois legalized weed. In addition, the company is planning to expand in New Jersey and New York, due to which investors might experience huge gains shortly. 

“Moreover, on 2nd August, the company acquired a vertically integrated cannabis business in Rhode Island.”

Within 24 hours after the news was released, their stock went from $30.48 to 38.86. In addition, there are more announcements that the company is planning to make soon. 

And after knowing that the company increases its cash flow every quarter, you should add this stock to your portfolio.

#2 Innovative Industrial Properties Inc. (NYSE: IIPR)

This is a marijuana-focused REIT (real estate investment trust). Since its IPO was released, the company has performed well compared to its performance in the past. 

One of the reasons this firm is doing so well is because it helps other cannabis companies overcome their financial issues. The company acquired processing or growing facilities in exchange for cash. And then it leases the same business back to the same firm for 10–20 years. 

When Innovative Industrial Properties Inc. entered into business in 2019, it only had 11 properties in 9 states. But by the end of the year, it had approximately 46 properties in around 14 states. 

Talking about its stock price, it’s worth adding to the watchlist. 

  • On December 14, 2020, Innovative Industrial Properties Inc expanded its partnership with PharmaCann at the New York Property. 
  • On November 16, 2020, it expanded another partnership with Kings Garden for a new property in California. 

And after this news, the trade volume of these stocks went from 4,32,300 (14th November) to 5,15,800. And the stock price – from $177 to $186. Since the company is continually growing, there’s a high chance that its stock price might experience a good high in the future. Thus, adding it to your watchlist is worth it. 

Other than these two, a few more marijuana stocks that you can consider adding to your portfolio are:

#3 High Tide Inc. (NASDAQ: HITI)

#4 Canopy Growth Corporation (NASDAQ: CGC)

#5 Innovative Industrial Properties Inc. (NYSE: IIPR)

#6 GrowGeneration Corporation (NASDAQ: GRWG)

Final Words

Marijuana stocks rise quickly and swing off the news. That’s why they are great for trading. And talking about trading, if you are new to marijuana stocks, you can consider starting with the stocks we have suggested above.