Recreational marijuana is currently legal in 18 states, Washington, D.C., and Guam. While it remains illegal at the federal level, this is likely to change within the next couple of decades as the movement to legalize marijuana continues to gain support across the nation. As more states continue to legalize recreational marijuana use, the question isn’t really IF federal legalization will take place but rather WHEN it will happen.
So, while cannabis stocks may still seem a little risky, investing now could lead to massive gains for your portfolio in the future. The pot stocks of today have the potential to become blue-chip stocks of the future. Here are three top cannabis stocks to hold long term.
Innovative Industrial Properties
One of the most attractive aspects of Innovative Industrial Properties is its risk profile, which is low compared to many other cannabis-related stocks. The company is not a grower or distributer but rather a real estate investment trust or REIT.
This real estate investment trust company was founded in 2016 and is headquartered in San Diego, California. The company went public in December 2016, listing on the stock market under the stock ticker IIPR with an IPO price of around $20 per share.
IIPR hit an all-time high in November 2021, trading around $280 per share. As of April 2022, IIPR is trading down closer to $200 per share. The REIT’s 52-week low is $162.81 per share, and its 52-week high is $288.02 per share.
With the company’s sales having quadrupled from $44.7 million in 2019 to $204.6 million in 2021, now might be the time to add this cannabis-focused REIT to your investment portfolio.
Green Thumb Industries
Green Thumb Industries is the second cannabis-focused stock on our list.
Founded in 2014, the company is a major cannabis producer, creating cannabis products that meet the needs of a wide range of consumers both in terms of recreation and health.
Green Thumb Industries is headquartered in Chicago, Illinois, has over 76 stores across the United States, and distributes its products in 15 different states. The company went public in 2018, listing on the stock market under the stock ticker GTBIF with an IPO price of around $8 per share.
GTBIF hit an all-time high in February 2021, trading around $36 per share. As of April 2022, GTBIF is trading about 50% lower than that peak. The stock’s 52-week low is $14.77 per share, and its 52-week high is $35.15 per share.
With the broad range of cannabis-based products that Green Thumb Industries produces and distributes, this cannabis-focused stock has a bright future ahead. And with so much potential, GTBIF might just find a way into your investment portfolio.
The final cannabis-related stock on our list is Cresco Labs, a medical marijuana company headquartered in Chicago, Illinois. Like Green Thumb Industries, Cresco Labs is a large producer of cannabis and cannabis products.
Founded in 2013, the company will soon be the largest multistate operator in terms of pro forma revenue, having just announced that the company is acquiring Columbia Care. Subsequent to this acquisition, Cresco Labs will hold over 130 retail stores across the United States. The company first went public in 2018, listing on the stock market under the stock ticker CRLBF with an IPO price of around $5 per share.
CRLBF hit an all-time high in February 2021, trading around $16 per share. As of April 2022, CRLBF is trading back down closer to $6 per share. The stock’s 52-week low is $5.16 per share, and its 52-week high is $13.65 per share.
With its new acquisition of Columbia Care and expansion of retail stores across the nation, Cresco Labs is certainly a cannabis-related stock to keep on your watchlist and maybe even in your portfolio.
In addition, the company is reporting gross margins of about 50%. If Cresco Labs can keep growing, it could end up being a very profitable cannabis company well into the future.
Is Cannabis Stock Really a Good Investment?
Many investors are on the fence with regard to cannabis-related stock but with all the untapped potential that still exists within the cannabis industry, investing in these three stocks at a discounted price might just prove to be a wise investment down the road.
So, if you’ve been thinking about adding some cannabis exposure to your investment portfolio, Innovative Industrial Properties, Green Thumb Industries, and Cresco Labs are three top candidates for you to hold.