Author: Shannon Hannes
You would not have considered investing in the marijuana industry a decade ago, owing to its illegal status.
However, marijuana has progressed from being banned in all 50 states to legal in some states.
With a compound annual growth rate of around 30% projected by 2030, the marijuana sector may be worth exploring if you’re trying to profit in 2022.
However, there are risks involved, as with any budding financial initiative. So, whether you’re a new or veteran investor, you need to grasp how the industry works.
This article will help you get started and covers some of the best marijuana stocks worth buying.
How to Invest in Marijuana Stocks
You can invest in the marijuana industry by buying stocks in the firms that make it up.
However, because the global marijuana sector is expanding like a weed, determining the right strategy for investing in the market is critical.
Here are some ways to become a successful marijuana investor:
- Recognize that there are numerous varieties of marijuana products.
- Understand the companies involved in the cannabis sector. Marijuana-focused biotechnology firms, marijuana farmers and sellers, and associated products and service providers are the three types.
- Understand the risks of investing in the cannabis market.
- Know what to look for in high-quality marijuana stock.
- Examine the top cannabis stocks and exchange-traded funds (ETF)
- Invest in your preferred cannabis businesses.
- Keep an eye on developments in the marijuana market.
Top Marijuana Stocks to Buy in 2022
In 2022, there are hundreds of stocks to pick from. Here are some companies you may consider investing with.
1. Cresco Labs (CRLBF)
Cresco Labs is an Illinois-based multistate operator. They operate cannabis outlets in twelve states, including six of the top ten most populous.
The company is a leading supplier of packaged cannabis in the United States.
The corporation is aggressively increasing its presence in the United States, announcing a $2 billion takeover of Columbia Care Inc. (CCHWF) in March.
Cresco will become the largest multistate operator in terms of revenue due to this transaction. If this deal is approved, Cresco Labs will operate in 18 U.S. markets, including 12 states, with annual cannabis sales of more than $1 billion.
2. Curaleaf Holdings (CURLF)
Curaleaf is a multistate operator (MSO) in the United States, with operations in 23 states. It is one of the largest MSOs in the United States in revenue, trailing just a few Canadian marijuana manufacturers in the global market.
The corporation is well-positioned to benefit from a surge of recreational marijuana legalization in many of America’s eastern states. That is because the region’s profit margins and prices will initially be far higher than the national average.
3. Green Thumb Industries (GTBIF)
Green Thumb is one of the leading multistate cannabis operators (MSO), with over 70 cannabis storefronts and 17 manufacturing facilities spread across 15 states.
The corporation has licenses to twice as many retail sites throughout the country. Green Thumb is one of the only cannabis stocks that has been profitable for seven quarters in a row. In the first quarter, sales marginally exceeded estimates.
Since the legalization of marijuana in its home state, the corporation has witnessed significant development. It stands to profit when the marijuana market spreads to other states, such as New York and New Jersey.
As the marijuana market expands and becomes profitable on the global and national scale, now may be the perfect m to begin investing to profit. Marijuana equities can be traded on U.S. stock exchanges such as Nasdaq and purchased and sold through major brokerage firms. Keep an eye on market trends to identify suitable stocks to buy. Also, consider the following top stocks: Green Thumb Industries, Cresco Labs, and Curaleaf Holdings.