Cannabis has been both one of the best and worst stocks to invest in for 2020. Pot stocks fell 50% from January to March, but have since risen 75%.
We can thank Joe Biden, the US’s impending marijuana legalization, and COVID for making everyone want to stay home and smoke weed for its comeback.
But will pot stocks continue to deliver the green in 2021? If the COVID vaccine goes ahead and the economy stays on track to recover, we think so. Here are our top recommended pot stocks to buy for the new year.
Curaleaf Holdings Stocks
In 2020 Curaleaf acquired the Select brand and MSO Grassroots, which is partly why Wall Street has predicted that the company will be the first cannabis stock to make $1 billion in annual sales next year.
With 96 dispensaries, Curaleaf also has the most dispensaries out of any other MSO. Unlike its competitor Trulieve, instead of a monopoly in Florida, the dispensaries are spread across 23 states. This makes the company one of our top pot stocks to buy for the new year.
Planet 13 Holdings
Planet 13 Holdings is another US MSO that is on fire right now. The company’s flagship store, SuperStore, is a massive 112,000-foot space located right off the Las Vegas Strip—and is basically Disneyland for weed. Admission is over $100 and will get you access to an events center, restaurant, immersion station, and sales area.
Speaking of Disneyland, Planet 13 is slated to open its second location near the gigantic theme park in Santa Ana in 2021. Although the store will be a bit smaller at 40,000 square feet, it’s likely to be a major success like its predecessor. All these developments point towards buying pot stocks for this company.
Cresco Labs Stocks
Thanks to its high sales growth, Cresco Labs is another MSO that is touted to become profitable in the new year.
The company can partly thank its high growth to its strong retail presence across the US. With 19 dispensaries, another 10 licenses, and a healthy market share of Illinois, the company is sure to continue to be a lucrative investment.
As a bonus, Cresco has also acquired Origin House and its wholesale distribution license. This gives it access to sell its products in 575 dispensaries in the most lucrative weed market in the world, California.
Columbia Care has been in the weed business for a while but in a medical cannabis manufacturing capacity. What makes this company likely to become profitable in the new year is its recent shift to recreational pot products.
Columbia Care currently has 76 dispensaries in 18 states and 24 manufacturing facilities. It also recently acquired Colorado’s leading cannabis operator, The Green Solution. Since Colorado is the second-biggest market for cannabis in the states, it’s likely the company will be a good investment for the new year.
Innovative Industrial Properties
Innovative Industrial Properties (IIP) gets its consistent stream of revenue by buying properties from medical cannabis businesses and then leasing them back to them. Companies benefit from this leaseback system by getting more liquidity and even some additional capital for upgrades.
IIP is a leader in the cannabis real estate space and has a unique position in the US stock market. That is because it is directly involved in real estate and not marijuana it’s allowed to be listed on a major US stock exchange, unlike other marijuana stocks.
Additionally, the company had revenues of approximately $34.3 million for the third quarter in 2020. This was a 197% increase from the prior year’s third quarter.
Is one of your new years’ resolutions to invest more? Let us know which cannabis stocks you have your eye on in the comments below!