2 of the Best Buys Among Cannabis Stocks Right Now
Picking cannabis stocks is tricky right now, with the industry gripped by a downward trend in the market. It's not a new phenomenon either; over the past three years, the ETFMG Alternative Harvest ETF and the AdvisorShares Pure Cannabis ETF have dropped 70% and 76%, respectively.
A recent market research report by Facts and Factors expects global legal medical and recreational marijuana revenue to cross $97 million by 2026, from $22 billion in 2020, growing at a compound annual growth rate (CAGR) of 28% between 2021 and 2026. Few argue about the future growth in the industry. But until federal legalization occurs, there's going to be quite a bit of a shakeout, with some companies rising to the top and others failing or being swallowed up by larger competitors.
That makes it more important than ever to invest in cannabis companies that have been on a path toward maintaining solid sales growth, such as Verano Holdings (OTC: VRNO.F) and Green Thumb Industries (OTC: GTBIF). They are among the few multi-state operators (MSOs) who showed sequential and year-over-year growth in revenue in their most recent quarters.
Source Fool.com
