The cannabis industry is considered to be the next big thing. Most U.S. states have legalized the use and sale of medical marijuana, and many more are following it for recreational purposes. One must have the idea about the best cannabis stocks in order to know the opportunities it can generate.
Why you should learn about the best cannabis stocks?
The United States is the largest cannabis market, and overall, Cannabis looks to have a promising future globally. As per Investopedia, cannabis’ annual market values across the U.S. are expected to reach $30 billion by 2025. Whereas, Cannabiz media projects the cannabis industry to reach $160.7 billion in the U.S. by 2025. The stats may differ, but the point is that the market is growing swiftly.
What do you conclude from this? Opportunities for cannabis companies, and by opportunities, we mean massive ways to generate revenues. Therefore, we bring you the five best cannabis stocks to buy before Christmas 2021.
The first cannabis stock on our list to buy before Christmas is Amyris(AMRS).
Amyris (AMRS) is synthetic biotechnology and renewable chemical company whose aim is to produce sustainable energy. Its shares have soared nearly 450% since this time last year.
Amyris completed another quarter of strong strategic and operational execution. The company recently updated its second-quarter results, reporting a whopping 74.4% increase in sales. The cannabis firm expects another record year, with expected total revenue north of $400 million in 2021.
Amyris has ambitious operational and financial goals and plans to reach $2 billion in revenue in 2025. Moreover, the company has been working to create synthetic cannabinoids that could revolutionize the industry.
Amyris is accelerating its growth and market leadership in clean beauty. The company is adding digital innovation, machine learning, and data science to enhance the consumer experience. Therefore, Amyris plans to acquire Beauty Labs International, a leader in A.I. technology that provides breakthrough connected consumer experiences to the beauty and wellness community.
Moreover, as part of Amyris’ expansion plan, the company closed the acquisitions of OLIKA and M.G. Empower Ltd. OKILA is an award-winning clean consumer brand. At the same time, M.G. is a leading global influencer marketing agency.
The next cannabis stock on our list is GrowGeneration Corporation(GRWG).
GrowGeneration(GRWG) is one of the highly valued cannabis stocks in the market. As we have mentioned, the future cannabis market seems promising. GrowGeneration has had a good ride since the pandemic began, and the stock has almost doubled annually on average over the past three years.
GrowGeneration has a strong standing in the industry and is the largest operator of hydroponic garden centres in the U.S. The company sells the equipment used to cultivate marijuana, which helps GrowGeneration earn most of its revenue.
Currently, the cannabis firm operates out of over 55 retail, and distribution centres in the U.S. GrowGeneration can produce at masses and is expanding.
In July this year, GrowGeneration announced that they are going to acquire HGS Hydro. HGS is a hydroponic garden centres operator based in Michigan and owns six stores. It is the 3rd largest hydroponic retailer in the U.S. Last year, HGS generated around $50 million in annual sales.
The company plans to continue its expansion and have at least 60 stores in 15 states by the end of 2021. While the target is to reach 100 stores by 2023. The good thing about GrowGeneration’s expansion is that it’s targeting the states where Cannabis is legal for medical and recreational use.
Looking at the quarterly outcomes, in the third quarter of 2021, the company had 60% same-store sales growth over last year. While the revenue grew by 190%, and the net income surged 161% year over year. These are good signs, and GrowGeneration has much upside considering its growth and the market condition.
Innovative Industrial Properties (IIPR)
The next cannabis stock on our list is Innovative Industrial Properties (IIPR), which is a REIT stock as well.
Innovative Industrial Properties (IIPR) owns properties in the cannabis sector. The company acquires properties from medical cannabis companies, then leases them back.
IIP has a safe yet profitable business model, which makes it one of the investor’s favourites. By safe and profitable model, it means that the company makes money by controlling properties that yield income. The company passes a large portion of its income to its shareholders in the form of dividends. Currently, IIP has a decent dividend yield of 2.24%.
Earlier this year, the company reported its first-quarter 2021 outcomes. Innovative’s total revenue jumped by a staggering 103% to $43 million compared to 2020. While the net income also jumped from $12 million to $26 million. In the same quarter, Innovative made four new acquisitions.
So far this year, Innovative has invested $1.7 billion in real estate investments across the cannabis industry. The Cannabis REIT expects to record $195.5 million in annual rental revenue in 2021. Whereas, last year, it made $116.9 million in revenue. Therefore, Innovative is right on the path to glory.
The fourth cannabis stock we have for you is Constellation Brands(STZ).
Constellation Brands (STZ)is not a cannabis company, but it has a stake in the Cannabis giant Canopy Growth. Constellation Brands is a popular producer and marketer of beer, wine, and spirits. The company owns 38.6% of Canopy’s shares.
Assuming full exercise of all remaining warrants and full conversion of the notes, Constellation Brands would own approximately 55.8% of the issued and outstanding common shares of Canopy Growth.
The beverage seller continues to hold warrants to exercise 88.5 million shares by Nov. 1, 2023, and the remaining 51.2 million shares by Nov. 1, 2026.
Adding Canopy to its portfolio, Constellation is well on its way to make huge profits. Canopy is the fourth profitable revenue stream to Constellation’s business. Therefore, in the coming years, Constellation Brands can give a huge investment return to its shareholders.
The last of the best cannabis stocks to buy before winter on our list is Tilray (TLRY).
Many analysts consider Tilray (TLRY)out of the league. However, the recent events have put some Tilray back in the race. Tilray’s merger with Aphria, a Canadian based cannabis firm, has made the company country’s second-largest behind only Canopy Growth.
Tilray might not be the front face with the following merger, as Aphria CEO Irwin Simon leads the combined entity. In fact, Aphria acquired Tilray in a reverse merger.
One of the key highlights of the post-merger was Tilray’s SweetWater Brewing division opening a Colorado brewery. At the same time, its SweetWater Mountain Taphouse opened at the Denver International Airport in July 2021.
As far as the core business is concerned, Tilray’s German subsidiary, Aphria RX GmbH, completed its first German-grown cannabis harvest in early July this year.
This is a major update for the company as the European medical cannabis market is expected to cross $3.9 billion by 2025. The company’s CC Pharma distribution business in Europe will be a major shareholder of the market.
Whereas, in Canada, Tilray’s target is to grow its market share to 30% in the next two years. The company will continue its expansion in the U.S. via its SweetWater Brewing and Manitoba Harvest businesses.
As far as the quarterly outcomes are concerned, Tilray recently reported its full-year and fourth-quarter results. For the fourth-quarter of fiscal 2021, the net revenue jumped to $513 million, which was 27% more than last year. While the Cannabis revenue grew 55% in Q4, ranking it on the top with the no. 1 market share in Canada.
These were our five best cannabis stocks to buy before Christmas 2021.