What are the best marijuana stocks? If you are wondering this it may be for a few reasons. First, marijuana is being legalized throughout the United States and other countries in the world such as Canada and some European countries and this is an excellent time to start cannabis investments.
With the re-legalization of marijuana for medical purposes or for adult use, an entire industry is being reborn and expanding rapidly. This industry is going to see a tremendous amount of growth in revenues and profits. Cannabis stocks are stocks to watch. You Amy want to look at my other major listings to learn how to get started in cannabis investing.
This is a once in a generational opportunity to create significant wealth in the stock market. But, there are some 350 different marijuana companies. Which stocks are the best cannabis stocks to buy now? Who has time to sift carefully through some 350 different marijuana stocks? No one can readily do that in any reasonable period of time. Well, no one except me. And, I am doing just that, and I have created this list of the best cannabis stocks to buy.
I am sifting through some 350 different cannabis stocks to find out which are the best marijuana companies and which ones are a bust; to find out which cannabis stocks are the best marijuana stocks to buy now. There are certain criteria that I am looking through to see which of these cannabis companies fit the most optimal criteria.
Value Investing & Marijuana Stocks
First, and most importantly, I am a value investor. I use the same exact principles as Warren Buffet when determining how valuable a cannabis company should be. I look at certain metrics such as Revenues, Gross Margins, Total Operating Costs, EBITDA, and Net Income.
From these metric points, I determine which cannabis companies will outpace the others, which cannabis stocks are going to outperform other stocks. This is the same investing methodology used by the greatest value investors of all time such as Warren Buffett, Charlie Munger, and others.
Financial Data For Marijuana Stocks
Marijuana stocks are moving higher and higher. The cannabis industry is expanding rapidly. As companies begin production we are seeing revenue growth rates in excess of 100% annually. While some companies may outperform an existing industry, no other industry on a whole is ramping up as quickly as the cannabis industry and outperforming the entire economy. And, marijuana stocks are moving higher because of it.
The stock market is moving higher simply because of economic factors. But, marijuana stocks will move higher at a much faster rate at some point in the very near future. You will be able to watch some of these marijuana stocks move upwards as the industry expands. You can keep pace with the broader industry by watching the revenue growth rates of various cannabis companies.
Gross Margins are the measure of how much gross profit is made from revenues after a company deducts product costs. The only two numbers in this are total revenues less cost of goods, divided by total revenues.
Basically, the higher the gross margins the more money is kept after a sale for the business; you want the highest possible number. Knowing this is one of the first steps in knowing how to invest in cannabis stocks.
Operating Efficiencies & Total Operating Costs
Total Operating Costs are those costs for running a business not associated with actually making the product (That would be determined by total gross margins). Total operating costs are Sales, General, & Administrative. Also, Depreciation and Amortization are factored from this.
Typically, as they suggest, costs associated with sales, generally running the business, and other administrative costs such as executive payroll are deducted from this. But, with costs such as rent, any expense for rent to manufacture a product would be deducted from gross revenues in the section above whereas rent for administrative expenses would be deducted from total operating costs.
What remains after these deductions is total operating profit. But, if you retain deductions and amortization, what you have is the pre-tax core business costs; this is also called EBITDA.
One measure that is especially helpful to fledgling cannabis companies is EBITDA profitability. This measure determines if the core business could be profitable and how soon that may be.
The core business expenses, cost of goods and operating expenses typically have a fixed amount with salaries and rents. Given that, if there is enough volume moving through the company then profitability can be achieved via economies of scale and ramped up productivity.
Once a company achieves EBITDA profitability, the likelihood of net earnings positive increases significantly. But, EBITDA profitability does not necessarily mean the company is profitable. This is only one line in the financial statement (Please note: EBITDA is a very useful tool for new companies but not as useful with companies that are already profitable. Also, although is very useful and widely used with new companies EBITDA is not a GAAP metric).
What are the best marijuana stocks to buy now?
What are my favorite marijuana stocks to watch? Which are the best cannabis stocks to buy now? Keep in mind that I am working through some 350 different cannabis stocks to determine which actually are the best cannabis companies to buy. I am comparing each of these stocks to each other.
By comparing each of these stocks I can get a sense of which cannabis companies are the better performing and which are going to outpace others. Also, I have a solid idea of which are the best cannabis stocks to buy, which are the best cannabis stocks to watch, and which cannabis stocks to avoid.
These are my Top Picks of cannabis stocks to buy now. Each of these cannabis companies is poised for long-term growth. It is my belief that if you took a very long-term approach, owned a basket of these stocks then over a very long period of time, say 2.5 – 5 – 10 years, or more, you would very likely gain significantly with stock ownership of these cannabis stocks.
I am constantly updating this listing so you should stop back on a frequent basis.
NOTE: This listing is in no particular order with regards to preference:
C21 Investments: CXXIF
- Target Price: $2.40
- Buy-In Price: $0.60 – $1.00
- Target Price: $7.50 – $12.50
- Buy-In Price: Buy NOW
Trulieve & Harvest Health: TCNNF & HRVSF
NOTE: Harvest Health is being acquired by Trulieve; New Price targets will be available post-acquisition with new shares outstanding for combined companies. These targets are for $TCNNF:
- Target Price: $75.00 TCNNF
- Buy-In Price: Buy NOW
Jushi Holdings: JUSHF
- Target Price: $21.50
- Buy-In Price: Buy NOW; accumulate from $4.00 – $6.00
High Tide: HITI
- Target Price: $50.00
- Buy-In Price: $5.00, $6.00, & $7.00
- High Tide HITI Stock Posts Record Revenues – HITI to move up
- High Tide HITI Stock Posts Record Revenue and Income Gains
- Halo Collective Stock $HCANF to $2.91 With Guidance
- Namaste Technologies Builds Momentum; And Whether $NXTTF is a Buy
Planet 13 Holdings: PLNHF
- Target Price: $12.50
- Buy-In Price: $5.50
Lowell Farms LOWLF
- Target Price: $32.50
- Buy-In Price: Buy NOW; Accumulate under $1.30
Next Green Wave: NXGWF
- Target Price: $2.50
- Buy-In Price: Buy NOW; $0.50
IM Cannabis Corp IMCC & MYM Nutraceuticals: MYMMF
- Target Price: $21.50
- Buy-In Price: 25% @ $4.00 50% @ $5.00 and 25% @ $6.00
- Target Price: $50.00
- Buy-In Price: Buy NOW; Accumulate under $10.00
- Buy-In Price: Buy NOW; Accumulate Under $2.50
- Target Price: $17.50 – $35.00
Decibel Cannabis: DBCCF
- Buy-In Price: Buy NOW; Accumulate Under $0.25
- Target Price: $1.50 – $1.75
Verano Holdings: VRNOF
- Buy-In Price: Buy NOW; Accumulate Under $15.00 – $17.50
- Target Price: $60.00 – $100.00