Top Cannabis Stocks
Are you looking to enter the cannabis stock market in 2021? Do you want to know the top performers within the cannabis stock market going into the new year? Let's take a look at 2020’s top cannabis stocks and are setting the way leading 2021.
If you're wondering if you're reading this right, yes, cannabis stocks do exist and are legal to trade and invest in. In fact, this market has become increasingly popular with investors over the years, so let's take a look into the reasoning as to why this exciting industry is catching the eyes of many.
Within Canada marijuana has been legal for both recreational and medical use but within the U.S only various states, or 12 to be exact, have legalised recreational use of marijuana or ‘Pot’ which is the name it is most commonly referred to as. However, for the remaining states, it is still illegal and is only available for medical use. Within the UK this is also the case, and it is illegal across the nation with only a limited use of marijuana set for medical use only.
But what is the attraction of cannabis stocks you may ask?
In answer to the question, there is and has been a lot of interest from investors all over the globe within this sector due to the significant changes within the U.S and Canadain laws within various states making marijuana legal. The demand from consumers across the globe being high and with medical usage still in demand to create top-performing medicines collectively, making the reason as to why the industries stocks have risen significantly as of 2018.
However, from 2018 up until recently with the news of Joe Biden’s triumph in becoming the new president of the United States, has sparked hopes of this sector being apparent to becoming back in the spotlight again very soon and will confirm if the laws on marijuana will develop further, for both forms of uses medical and recreational within various states or making it legal across the country.
As renowned companies keep knocking on the doors of these states where the barriers are up with the strict laws on the usage of marijuana, the outcome either way is going to have a big impact within the cannabis stock market.
States including New Jersey, Arizona and Montana saw voters on 3rd November 2020 vote for approval for recreational use of marijuana to be legalised within their states, with Mississippi approving marijuana to be legalized only for strictly medical use only.
The cannabis stock prices this year may have just done okay for some, but for others has still fared up brilliantly considering the challenges 2020 has sprung among us all or for some they have seen losses worsen due to various factors. One of those major factors being the U.S election but secondly has seen companies investing within their business to help speed up the making and distribution process by purchasing equipment that will bring in revenue quicker. However, following on the US election, prices of cannabis stocks has seen a rise within no time at all for various companies, with the hopes for new changes set to come going into 2021 for the cannabis industry.
If you are wondering what cannabis stocks are, your understanding will become clear as we head into the next section.
Read Also: What Stocks To Buy In 2021?
What are cannabis stocks?
The cannabis industry has come a long way throughout the years, which has seen thousands or almost even millions of tourists flock to Amsterdam where recreational use of marijuana has been legalized for many years and in medical terms, marijuana is a respected drug to help with various illnesses to become stabilized.
But what is a cannabis stock?
Cannabis stocks are simply stocks you can buy within legalised cannabis companies who create cannabis for medical use and now as it is becoming legalised for recreational use, from both private and public firms.
But the hype that surrounds this product globally, it is causing a significant rise in the stock prices. As the growing number of individuals back the legalisation of this product, it has caused public and private companies to grow rapidly, which has seen investors keep a close eye on this fast-developing industry, which has then lead many investors to become a part of the newly fresh, dynamic, growing industry that is showing and has the potential of doing extremely well in the present and in the long haul.
And the evidence is there to be seen, as of 2018 the cannabis industry reportedly made $13.8 million from both public and private firms. With a slight setback this year, the industry is looking to boom going into 2021 to a scale which may surprise both investors and non-investing individuals, which makes now the right time to get to know the ins and outs of the new blossoming industry and look at the top cannabis stocks who have performed well in 2020 and are set to perform leading into 2021 and beyond.
The Best Performing Cannabis Stocks in 2020
From the industry's ups and downs, it has experienced over the recent years, there is no question as to how the future is looking moving forward for the evolving cannabis industry.
According to data, the marijuana industry by 2025 is set to increase to an industry worth over $38 billion, which is why this opportunity to be a part of such rapid growth is not to be missed.
Now, let's waste no more time and look into the Best 11 Cannabis Stock Performers of 2020 also looking to blow up further in 2021.
The Top 11 Cannabis stocks Performers For You in 2021:
- GW Pharmaceuticals (GWPH)
- Canopy Growth Corporation (CGC)
- Aphria (APHA)
- Scotts Miracle-Gro (SMG)
- ETFMG Alternative Harvest ETF (MJ)
- Novartis ADR (NVS)
- Green Thumb Industries (GTBIF)
- Cresco Labs (CRLBF)
- Aurora Cannabis (ACB)
- Cronos (CRON)
- Harvest, Health & Recreation (HRVSF)
1. GW Pharmaceuticals (GWPH)
The first company to come on the list is GW Pharmaceuticals (GWPH). The British company who has set its name firmly within the industry having produced two cannabis products known and distributed to over 30 countries around the globe available for medical use.
Nabiximols, which was the first natural cannabis plant to be produced, gained approval and authorisation not just from within the UK but across all countries where marijuana distribution is available for medical use and the second Epidiolex, which has become the second product to be approved recently by US food and drug administrators, is set to be a further success for the company having being authorised for legal use.
Specialising in researching and developing prescription supplied cannabis medicines for diseases such as multiple sclerosis, which GWPH are world-renowned for and carrying out further research into looking to create a successful medication for rare and catastrophic forms of childhood epilepsy.
The biopharmaceutical company who has a market cap of $4 billion is set to be on track for further success, as it has been confirmed that the company brought in a revenue of $442 million as of June 2020, whilst leading into 2021 the company is looking to see potential staggering figures from the latest medicine creation and with the new products set on the horizon.
Even though the company has not made the numbers they initially were predicting and anticipating for this year, the company is reportedly still up YTD by 25%.
With the new medical products in the making, there is no doubt this buy is for the long term with great profitability to be made.
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2. Canopy Growth Corporation (CGC)
Canopy Growth Corporation, a Canadian cannabis company founded in 2013 which is based in smith falls, Ontario, Canada.
CGC is one company at the moment that investors are watching intently following on from the election to confirm Joe Bidden who is set to be the new president of the united states, has led many to believe or speculate that marijuana legalization may potentially be legalised across most U.S states, as vice president Kamala- Harris has expressed and supported the legalisation of cannabis use.
Although this year has seen declines for the leading organisation that has a market cap of around $10 billion, in light of recent events the company has dismissed employees and has seen closures of various greenhouses to lower their outgoings as the company reported a $1.3 billion net loss due to significant renovations within the company as since seen light at the end of the tunnel after such turnaround.
However, carrying on the positive note the Canadian company this year has risen by 38% and is carrying on doing significantly well given the global effects and has even been named as the biggest ‘pot stock’ in the market, with September seeing the company with C$1.32 billion net sales.
With the new shareholders Constellation Brands and the new CEO David Klein running the regenerated company, this performing brands success is set to carry on going into the new year and beyond.
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3. Aphria (APHA)
Another Canadian cannabis company to grace the list of top-performing cannabis companies in 2020 and one to buy or keep hold of is, Aphria.
Aphria is ranked within Canada as the number #1 firm for revenue, with the majority coming from recreational use of marijuana. The company which has a market cap at present of $1.29 billion, is leading the way with net sales outshining most or all of its competitors which indicates its 16% up year-over-year and is ranked #12 out of 240 medical - pharmaceutical stocks.
The Canadian pharmaceutical company has seen its downsides also this year, with a reported $5.1 million loss during its first quarter, however, it was still one of the better-performing companies amongst its competitors for the losses each company has taken in 2020.
Between Aphria and Canopy Growth, these Canadian brands have had a lot of light placed on the two being compared to one another to see who will come out better as the new year comes but the reality is, both are equally strong companies to be apart of.
Although canopy growth is more established, CGG’s market shares are larger and its revenue is growing faster, Aphria is not to be overlooked as this company is set for great success and has proven so far.
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4. Scotts Miracle-Gro (SMG)
SMG is one of USA’s largest manufacturing companies known more commonly around the globe for its lawn and pest control products is now fast becoming into the cannabis industry.
Due to recent events this year, has seen millions across the globe confined to stay at home measures and has seen a substantial increase in sales with its products.
In recent times the company has made its way into the cannabis industry and is becoming the one to watch, as their hydroponic products which are vital for growing many plant-based products but one in particular, cannabis are leading the way in sales.
It comes as no surprise that the company is setting up for greatness, as Scotts took over a new addition to the growing organisation Sunlight Supply back in 2018 which grew significantly and reported a 59% increase as of September 2020.
The company that holds a $9.6 billion market capitalisation is set to soar in the coming years and has proven to be more popular with professional cannabis growing individuals and companies who are sourcing their own growth of cannabis, which is what makes this company one to be a part of going into the future.
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5. ETFMG Alternative Harvest ETF (MJ)
If you are familiar with the cannabis industry, then no doubt you will have heard or come across ETFMG Alternative Harvest EFT (MJ).
MJ is a USA exchange-trading fund which sets to track companies who are likely to benefit from various cannabis uses. With a whopping $569.69 million worth of net assets under its belt, the organisation knows a good business what it sees one, including two Canadian companies that made the list Canopy Growth group and Aphria are within MJ top 10 list.
The fund looks for cannabis companies set to make it globally within the industry and companies which are legal to operate with the correct permits and licenses. Aside from cannabis companies, MJ also looks for companies that in effect have the potential to broaden their business within the field.
With some top-performing cannabis players within the cannabis industry under its belt, this organization is arguably the big force within the industry
6. Novartis ADR (NVS)
Novartis International is a Swiss pharmaceutical company which is headquartered in Basel, Switzerland.
The company who produces healthcare products distributed across the globe is one of the largest pharmaceutical companies in both market capitalisation and with net sales, proving to be an unstoppable force within the industry.
With a market value of $200.9 billion to date, its connection with marijuana comes in through an agreement which was signed in 2018 with Tilray partners with the brands first global partnership to share their aim to “expand in more markets more quickly”.
NVS, like other companies, has performed steadily with a year-to-date of -3.2%.
With the medicines in which the pharmaceutical company aims to produce and with their involvement within the cannabis industry, leads to this company being one of the top performers within 2020 and looking for success for many years to come.
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7. Green Thumb Industries (GTBIF)
Green thumb Industries (GTBIF) is an American cannabis company based in Chicago, Illinois. A company who produces cannabis for both medical and recreational purposes within the United States.
GTBIF’s presence within the US is on the rise, as it stands currently their aim is to try to set out and place a retail store within each state that is set to make recreational marijuana legal. As in states where weed is legalised at present, which is 12 states up to date the brand has made their presence clear with operating sores to the public.
Whilst their stock is currently up by 1.74% within the past week and with news confirmation of the brands 50th store set to open in Rise Kendall, Florida.
This cannabis company is one of the best performers within 2020 and by the looks is one company set for much more in 2021.
8. Cresco Labs (CRLBF)
Cresco Labs, another Illinois based marijuana company, comes in next on the top performers list having a shining year despite the fact they are around 20% down on shares this year, are still performing brilliantly and have even outshone some of the leading Canadian marijuana companies.
Not only has this US company been cleverly dominating the field, the outlook the company is setting for the new year ahead and in years to come are being brilliantly planned out already.
The company is setting a strategic plan alongside getting the wheels in motion at present for stores to be located within the states that have voted for recreational marijuana to be legalized.
Talk about being one step ahead, as there is still a risk that these states will not be given the authority.
With good revenue, consistent revenue coming through and the plan for moving forward, this company is already on their way into the future.
9. Aurora Cannabis (ACB)
Aurora Cannabis, a Canadian marijuana producing company that has developed significantly well over the years since it was founded back in 2013.
Although, like many other medical companies, this year saw a challenging start to the year and this company is no exception either, with its stock falling around 60% but with the election news saw ACB's funding increase and still rising sees the company fast walking its way to the new exciting pathway in 2021.
The company's new CEO Miguel Martin who took charge this year has his sights firmly on making ACB one the continuing leading companies within the industry stating “ We intend to demonstrate that Aurora can be profitable, growth-orientated and a leader within the cannabinoid market”.
With ACB’s new CEO and the company's attractive outlook moving forward, this company is not only one of the best firms this year but is set to achieve success within 2021.
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10. Cronos (CRON)
One of the key points to mention about this stock is that its large equity holder Altria plays a huge part within the businesses strategic planning, which has proved to be not only a huge part but a key part for the business.
At the end of September, Cronos outshone its YTD figure and hit $11 million, which is double what the company made the previous year within Q3.
With a good revenue balance, the company has also been focusing on other areas including a line of wellness and health products, enabling the more growth to be added under one of their brands.
And lastly to mention, Cronos has also signed a deal with Ginkgo Bioworks which is a biotech company that innovates cannabis strains, which will be implemented for medical use.
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11. Harvest, Health & Recreation (HRVSF)
Harvest, health & recreation is a vertically integrated cannabis company founded in 2007 in Arizona, USA.
HRVSF is the largest medically approved cannabis company within Arizona and recently seen voters voting for the state to grant legislation for recreational use of the product, which will be a big generator for the company.
For this company, $225 million has been predicted that the company will make in revenue at the end of the year and with the hopeful news of recreational use to be added, is setting more growth for the well established Arizonian company leading into 2021.
Top Cannabis Stocks - Summary
And there you have some of the top cannabis performers within 2020. Although there are more companies set to archive success over the coming year, it is always worth keeping an eye on other companies that are up and coming also.
As we know, anything is possible and even within a short period of time.
Now that we have established who the top players were in 2020, now is to learn how to invest in and be a part of those top cannabis stocks.
How to Invest in Cannabis Stocks?
When looking to invest in cannabis stocks you need to have the time, the understanding of the cannabis industry and the understanding of each individual company you are interested in, to learn and see what that company has to offer and their background including what the positives and risks that are surrounding each one before you seek to invest in any firm. Which is why spending time to learn and research is vital when looking to invest within any industry.
Firstly, as you are now aware there are two types of marijuana products, medical and recreational marijuana, so this point is one that you need to flatten out yourself as to which route you are looking to go down. Researching the industry as advised and the companies positives and potential risks are your first and most vital starting points.
Once you have carried out all of your necessary research and you feel you are confident of your learnings, the next step is to open a brokerage account. There is no need to worry if you are a beginner or an investor looking to trade within the cannabis industry, eToro an online trading platform can assist you from the beginning.
From opening a brokerage account to being on hand for you when you're ready to start your journey in cannabis stocks, along with having a diverse portfolio of some of the best performing medical marijuana stocks to be a part of. eToro also has access to the US market, which will enable you to invest in some of the USA’s top-performing companies.
Once you have opened your account, confirmed a broker, you are able to start your exciting journey into investing in cannabis stocks. There is no need to panic, whilst your browsing the best buys you can also obtain a description of the chosen company you are looking into which will give you the companies reality statistics before you jump in, statistics such as broker ratings and dividend payments, all information will be available in front for you to access at any time.
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Key Takeaways
- Always conduct further research into your chosen stocks
- Note - there are two types of marijuana products medical marijuana and recreational marijuana
- Make sure you understand the risks of investing within the marijuana industry (along with other stocks)
- Invest carefully and wisely within marijuana stocks
- Lastly, take your time.
Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors.