The cannabis industry has been growing rapidly in recent years, with more and more states legalizing the use of marijuana for medical and recreational purposes. This has led to a surge in the number of cannabis companies, all vying for a piece of the lucrative market. But are any of these companies actually making money? The answer is yes. There are several cannabis companies that have seen their stocks rise significantly over the past 12 months, including Green Thumb Industries, Cresco Labs, and Trulieve Cannabis Corp.
Green Thumb Industries is one of the largest cannabis companies in the U. S., with 77 retail stores in 15 states. It also has enough additional licenses to nearly double its retail stores. Cresco Labs operates retail stores in 10 states, including six of the most populous states in the U.
S., and is the leading wholesaler of branded cannabis products in the U. S. Trulieve Cannabis Corp is a multi-state operator that has seen its shares rise 235% over the past 12 months. Village Farms offers the best value for money from the stocks listed here, but unless you're particularly interested in the Canadian marijuana market, you're probably better off going for an American one. And while all the multi-state operators present here will continue to generate large numbers of growth as more states legalize marijuana, Trulieve is the cheapest stock on the list and the one I would choose today. Innovative Industrial Properties (IIP) helps solve cash shortages for growing marijuana companies by buying U.
S.-owned properties and re-leasing them to medical cannabis operators. Selling to IIP provides the cannabis operator with much needed money, and leasing agreements create a consistent revenue stream for IIP. The company has grown significantly in recent years and now owns properties in 19 states. Scotts Miracle-Gro faces the same market dynamics as GrowGeneration. Like GrowGeneration, its shares can be traded on a major stock exchange (in this case, the New York Stock Exchange), since Scotts doesn't violate any federal marijuana laws.
The company's Hawthorne Gardening subsidiary is one of the leading suppliers of hydroponic gardening products for the cannabis industry. The COVID-19 pandemic affected almost every sector of the world economy, including the cannabis industry. States and cannabis dispensaries were designated as essential businesses, and sales skyrocketed in some states during the first few months of the coronavirus outbreak due to more time spent at home and increased anxiety. Marijuana producers and retailers benefited, as did ancillary suppliers who sold garden supplies and other products to these companies. The huge cannabis industry offers opportunities for long-term investors, but it also comes with risks. These companies create drugs and treatments for some of the biggest medical problems of our time, but conservative investors who prefer lower risk are likely to be better off avoiding investing in marijuana stocks.
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