Warrior Trading Blog

Top Rated Marijuana Stocks That Will Light Up Your Portfolio

marijuana stocks

Today, the marijuana industry is experiencing tremendous growth thanks to changes in rules and regulations around the world. According to medical researchers, marijuana has started to show a huge potential especially towards medical use.

As a result, several biotech companies in the US have started to develop cannabis medical applications. This has resulted in several start-ups rushing to join in the craze to cash in on the venture.

Problem is majority of these start-ups may end up failing because large biotech companies have already taken a large chunk of the market.

Want to get a taste of the profits from marijuana stocks? Then check out these top rated marijuana stocks that are positioning themselves to be at the forefront of the marijuana industry.

AbbVie Inc

AbbVie Inc is first and foremost a pharmaceutical company that places its emphasis on research and innovation.

The company has invested in advanced science in order to find the best solutions that would ensure the treatment of the world’s most challenging diseases.

That is why the company is on a path of constant discovery and the development of drugs for therapeutic areas.

Today, AbbVie Inc is ranked number 8 among top large biotech companies with a market cap of $155.4 billion. Thanks to the need for new medical applications, AbbVie Inc shifted to the cannabis industry.

AbbVie stock chart

As a result, the company has experienced increased revenue over the past few years with its operating income growing too. This has been attributed to its useful drugs derived from marijuana for example Marinol.

According to NASDAQ,  ABBV is ranked Top 25 under the category Dividend Giant by the ETF Channel. This is because the company has been able to increase its worth of stock to $6.13B.

As a result, the company has positioned itself as one of the most lucrative biotech companies to invest in 2017.

GW Pharmaceuticals

As one of the largest cannabis focused biotech stock trading using the following symbol – GWPH – its share price is set at $102.24 at the time of writing this article. GW Pharmaceuticals has established itself as the world’s leading expert in plant derived cannaboid therapeutics.

GW Pharmaceuticals stock chart

It has achieved this status through innovative development processes and a massive intellectual property portfolio among others. Currently, its leading product is Epidiolex which is a cannabidiol that is formulated to combat severe drug resistant epilepsy syndromes.

This was not the only successful product to be produced by the company. It started by producing Savitex which is a treatment for spasticity associated with multiple sclerosis.

At the time of writing, the company had already announced its performance for the past quarter and although its share price dropped by 3% following the release, it’s still one of the best marijuana stock to invest in 2017.

This is because once the company receives its approval for the current drug, Epidiolex – sales will soar which means the value of the company stock will rise so will its worth. This will place the company in a better position to continue innovating and developing new products for the market.

Philip Morris International

This company is mostly associated with the production of cigarettes and tobacco products but thanks to gains achieved from the sale of cannabis related products, Philip Morris International decided to venture into the industry.

It trades with the following symbol – PM – and at the time of writing; the share price was $114.22. Philip Morris International has positioned itself well as a massive distributor of cannabis related products.

Philip Morris stock chart

For example, if it were to replace the nicotine liquid found in its e-cigarette with THC liquid, a component derived from cannabis itself, sales would hit roof. Furthermore, the company has invested in Syqe, a company located in Israel that has patented one of a kind marijuana inhaler.

Furthermore, the company’s stock has gained over 7% since last year with a projected earnings growth of 40%.

Marijuana Penny Stocks

Trading OTC penny stocks is inherently riskier than trading listed stocks on the NASDAQ or NYSE. They don’t have the same rules as far as reporting financials and business initiatives as well as governance by the SEC which makes them far less transparent and subject to manipulation.

With that said, we are not recommending investing in the following stocks but are simply providing information on popular marijuana penny stocks.

Terra Tech Corp.

Terra Tech stock chart

Terra Tech Corp. (OTC: TRTC) is focused on cannabis agriculture and cultivation for medical marijuana and is currently based in Irvine, CA. They utilize hydroponic growing techniques along with their own proprietary technology for growing some of the gnarliest buds in town.

They are currently trading around 25 cents per share and trade an average of around 5 million shares per day. Their most recent earnings results they reported over 7 million in revenues and that was after leaving the ornamental flower business.

With demand increasing and the potential for more states to legalize, Terra Tech could be in a great position to expand exponential over the next 5 to 10 years.

American Green Inc

American Green stock chart

There has been a lot of buzz around American Green (OTC: ERBB) lately as they have recently purchased over 120 acres in Nipton, CA, a small ghost town on the perimeter of the Mojave Desert, where they are looking to turn it into an off the grid “pot paradise.”

American Green specializes in the cultivation and distribution of medical and recreational marijuana.

ERBB has a share price of $0.0022 currently and trades on a daily average volume of about 140 million shares. The company has just under 14 billion shares outstanding and a market cap of just over 30 million.

With the news about Nipton, CA, shares are experience a surge in volume and interest by both investors and traders. Expect shares to remain volatile as it will likely be a while before the company sees any revenues from their latest acquisition.

Canadian Medical Marijuana Stocks

Canada has a unique first mover advantage in the marijuana industry as they are one of only two countries that currently exports marijuana. The other is the Netherlands. They are also introducing new legislation in 2018 to legalize marijuana and if that is passed it will only help fuel the growing industry.

With global demand for medical marijuana on the rise, Canadian distributors are in an excellent position to dominate the global export business as companies will be able to build strong brand recognition and important business relationships before most other companies will have the opportunity to. That’s why investors like Dan Bilzerian are looking to jump on the marijuana band wagon!

Some of the top-rated marijuana stocks to watch out of Canada are Canopy Growth and Aphria. Both trade on the Toronto Stock Exchange (TSX) and are kicking out strong revenue growth year over year.

Canopy Growth Corporation

Canopy Growth Corp. (TSX: WEED) is a leading cultivator and seller of medical marijuana and is one of the largest marijuana stocks in Canada with nearly $50 million in revenues.

They are in a great position to lead the way in global exports for medical marijuana with some of the most advanced grow facilities in the business.

Expect strong growth in this company as they continue to grow their business worldwide with the legalization of both medical and recreational marijuana.

Shares currently trade in the $8.50 range on just over a million shares of average daily volume and a market cap of $1.45 billion.

Shares are slightly down on the year but have formed a nice base in the $6.50 to $8 range which is what we would like to see hold as the year progresses. Current highs for the year are at $13.00.

Aphria Inc.

Aphria Inc. (TSX: APH),(OTC: APHQF) is another Canadian pot stock that is positioned for excellent growth. They’ve been on a 5-quarter hot streak of turning profits and recently reported a loss in the fourth quarter only because of a $5.5 million capital expenditure to expand operations.

They are approaching $20 million in revenues which is astonishing considered they put up just $550,000 in 2015. You can check a cool video of their grow operations below:

Shares of APHQF are currently trading at $4.62 on roughly 120,000 in average daily volume and a current market cap over 850 million. Shares are slightly up on the year on have been on a decent uptrend since bottoming out at $3.52 earlier in the summer.

Risks With Investing in Marijuana Stocks

Although marijuana stocks are scorching hot right now, there are certain risks you need to know about including increased competition and political risk from the federal government.

Right now, the marijuana industry is growing faster than the pot plants they are selling. However, large biotech companies have taken much of the market share when it comes to providing medical marijuana solutions. This has enabled them to get a head start over startup companies that have fewer resources.

Problem is others want a piece of this cake. As a result, start-ups are popping up everywhere and will undercut prices to get some of the market share which will ultimately benefit the end-user with more competitive prices but could also limit the potential the bigger company’s have.

However, the marijuana industry is still brand new with a ton of different ways for these companies to capitalize.

Another major risk involved with investing in the marijuana industry is that it is still technically illegal on the Federal level and pot stocks aren’t technically allowed to be listed on any major exchange.

“As long as cannabis is classified as a Schedule I substance, Wall Street’s regulator-in-chief isn’t going to approve an S-1 filing from a cannabis company wishing to go public.”

This means that most US marijuana stocks will only be able to trade Over the Counter and that means that they don’t have to adhere to the strict rules and regulations that are set in place to protect investors like financial transparency business initiatives.

That doesn’t mean all companies are deceiving investors it just means that they don’t have as strict of guidelines to follow.

Despite these risks, the marijuana industry is still a force to be reckon with. Popularity is gaining and more states are approving medical marijuana usage with recreational weed right behind it.

Final Thoughts

Despite the risks described above, there are lots of rewards from the hottest marijuana stocks thanks to the probability of changes in federal law and the benefits that medical marijuana provides.

Check these names out if you’re interested in dipping your toes into the marijuana industry.