To consider opportunities to buy cheap cannabis stocks in companies in the cannabis industry, one must take in cosideration certain aspects that give a measure of the economic possibilities.
The industry has experienced rapid growth in recent years as more countries and states legalize the use of cannabis. There is also an increase in investment, with venture capital firms, private equity firms, and even large corporations in an expectant position.
Read more about the global cannabis market and find other important cannabis news with the hemp.im mobile app, available for free.
An overview of the global cannabis market
According to a report by Markets and Markets, the global cannabis market was worth $22.5 billion in 2021. It is expected to reach a valuation of $82.3 billion by 2027, growing at a compound annual growth rate of 24.3% from 2022 to 2026.
This growth is expected to be driven largely by the acceptance of marijuana for medical and recreational use, the legalization of cannabis, and investments in R&D to make cannabis production and consumption more environmentally friendly and user-friendly.
Legalization and decriminalization of cannabis in many countries is one of the main drivers of growth. More countries relax their laws, increasing users, as well as the number of companies that can operate legally and provide cannabis-based products and services.
Investments in the cannabis business
Tobacco giant Altria Group and beverage giant Constellation Brands were excited about cannabis when things looked good. However, lobbying regulatory headwinds caused these companies to suffer significant losses on their cannabis investments.
One prominent venture capital firm that is investing heavily in the cannabis space is Denver-based KEY Investment Partners.
The firm has invested in ancillary and plant contact cannabis businesses operating in the private equity space. KEY Investment Partners released a white paper detailing investment opportunities and explaining why most publicly traded cannabis companies are undervalued.
Jushi Holdings is an innovative and disruptive operator in the cannabis and hemp industries, with operations in the United States and Europe. The company focuses on the development, manufacture, and distribution of a wide range of cannabis and hemp-derived products.
Last October, analyst Jonathan DeCourcey, initiated coverage of Jushi Holdings with a Buy rating and a C$3 price target.
On December 13th, Jushi Holdings launched three new cannabis brands in California, Seche Pre-Roll Singles, Tasteology Fruit Chews, and The Lab Vapes.
As of January 3rd, the stock is arguably cheap considering the company’s advancement in the cannabis space and its potential to capture greater market share due to its size and scale. The stock ranks among the best cheap cannabis stocks to buy now.
Medical cannabis companies
Innovative Industrial Properties focuses on acquiring, owning, and managing specialized industrial properties leased to state-licensed operators for their regulated medical cannabis facilities.
As of January 3rd, the stock trades at a not-too-expensive ratio for a high-growth stock, and offers a forward dividend yield of 7.10%. It is one of the best cheap marijuana stocks.
On November 9th, Roth Capital analyst Scott Fortune upgraded his price target on Innovative Industrial Properties to $170 from $190 and maintained a buy rating on the stock.
Canopy Growth Corporation is another one that has a strong competitive position in the cannabis market and is one of the top players in the sector.
DISCLAIMER: This article was written by a third party contributor and does not reflect the opinion of Born2Invest, its management, staff or its associates. Please review our disclaimer for more information.
This article may include forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “estimate,” “become,” “plan,” “will,” and similar expressions. These forward-looking statements involve known and unknown risks as well as uncertainties, including those discussed in the following cautionary statements and elsewhere in this article and on this site. Although the Company may believe that its expectations are based on reasonable assumptions, the actual results that the Company may achieve may differ materially from any forward-looking statements, which reflect the opinions of the management of the Company only as of the date hereof. Additionally, please make sure to read these important disclosures.
First published in La Voz DE CHILE, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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