Despite the various factors that have been presented in the media about the cannabis industry, investors should still be aware of its potential. According to estimates by the BDSA, the global market will be worth over $60 billion by 2026. This growth rate will be driven by the industry’s rapid expansion. With the legalization of recreational marijuana in many parts of the U.S., and more states expected to follow suit, this sector could be a great opportunity for investors.
The Cannabis Landscape Is Flourishing
The rapid growth of the cannabis industry has been attributed to the various factors that have been at play in recent years. One of these is the country’s financial stability, which has attracted many investors and big-game players. This is the reason why it is important for investors to capitalize on the potential of this sector. The GDP of the industry has also increased significantly this year, which means that it could become a leading financial sector. This is why it is important for investors to consider the current trend in the cannabis industry when expanding their portfolios. In addition to these, you’ll also find other factors that show how the industry is rapidly expanding.
Valuations Remain Low
Unfortunately, the price of marijuana stocks has been falling over the past year. Due to the lack of profitability and the uncertainty surrounding the legalization of marijuana, many investors are not happy with the performance of the sector. Another reason why they are not happy is the high supply of marijuana in California. Despite the various factors that have been presented in the media about the cannabis industry, investors are still not happy with the performance of the sector. Many of the stocks that have fallen are trading at very low P/S multiples. The average multiple that the Marijuana Life Sciences ETF is currently trading at is around 4.9. However, since many of the top marijuana stocks are trading at a discount, it is important for investors to consider these stocks as they offer a great opportunity. These companies have shown that they can be successful, and investors should seize this opportunity as continued efforts to expand legalization could make these stocks incredibly profitable in the near future.
Cannabis Continues to Grow in Popularity
Several investment firms and news organizations have published pieces about the cannabis industry’s growing popularity. In July 2020, Forbes reported that investing in the cannabis industry is one of the best long-term opportunities. Due to the growing public interest in the marijuana industry, more states are expected to follow suit and legalize it. This has led to a significant increase in the number of people who believe that it should be legal for medical purposes. The public’s awareness of other medical conditions CBD can treat such as anxiety and depression has also increased.
The growing acceptance of marijuana as a treatment for various medical conditions has also led to the public’s interest in the use of cannabidiol, or CBD. Unlike THC, which has psychoactive properties, CBD does not have the same stigma attached to it. This is also beneficial for people who are unable to use marijuana due to other medical conditions.
There Are Many Growing Companies
Among the various marijuana stocks that are currently trading on the stock exchange, three companies are considered to be some of the safest: Innovative Industrial Properties, Curaleaf Holdings, and Green Thumb Industries. Over the past year, the earnings before interest, taxes, and depreciation of these companies have been rising. One of the biggest companies in the industry, Curaleaf, has a presence in over 20 states and has a trailing revenue of over $1.2 billion.
Cannabis Offers Diverse Investment Opportunities
Aside from stocks, investors and innovators have many options when it comes to the development of the marijuana industry. There are multiple types of investments that they can make, such as the cultivation of plants, as well as the production of marijuana products. Medical marijuana is considered to be one of the most diverse and safest investments.
Besides investing in the marijuana industry, you can also diversify your portfolio to take advantage of the various opportunities that it has to offer. To ensure that you are getting the best possible return, it is important that you thoroughly research the various aspects of the sector.
