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If you’re looking to invest in the cannabis industry, you may be wondering what the best cannabis stock to buy in 2019 is. Here’s a look at a few of the top contenders.
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Introduction
The best cannabis stock to buy in 2019 depends on your investment goals. For some investors, the best pot stock might be a company with strong fundamentals and a solid management team. Others might prefer a penny stock with more upside potential.
And then there are those who don’t want to pick just one stock, but instead want to invest in an exchange-traded fund (ETF) that gives them exposure to a basket of different cannabis companies.
No matter what your investment strategy is, there’s a cannabis stock out there for you. Here’s a look at three of the best pot stocks to buy in 2019.
The Cannabis Market
The Medical Cannabis Market
The global medical cannabis market was valued at USD 8.28 billion in 2016 and is expected to grow at a CAGR of 34.6% during the forecast period of 2017-2024 to USD 28.07 billion by 2024. The need for sophisticated and reliable products for medical use, the change in the perception of people regarding the use of marijuana, and the rise in research and development activities by key players are expected to drive the growth of this market during the review period.
Medical cannabis, also known as medical marijuana, is cannabis and cannabinoids that are prescribed by physicians for their patients. The use of cannabis as a medicine has not been rigorously tested due to production restrictions and other governmental regulations. Limited clinical evidence suggests that cannabis can reduce nausea and vomiting during chemotherapy, improve appetite in people with HIV/AIDS, and reduce chronic pain and muscle spasms. However, there is no conclusive evidence that cannabis is effective in treating cancer or other serious medical conditions.
The Recreational Cannabis Market
The recreational cannabis market is expected to be worth up to $22.6 billion by 2022, according to a report by Brightfield Group. The market was valued at $9.7 billion in 2018 and is expected to grow at a compound annual growth rate (CAGR) of 28 percent between 2018 and 2022.
There are a number of reasons for this rapid growth, but the most important factor is the legalization of recreational cannabis in Canada. Canada is the second country in the world to legalize recreational cannabis, after Uruguay, and the first G7 nation to do so. The Canadian market is expected to be worth $5.4 billion by 2022.
Other countries that have legalized recreational cannabis include Colombia, Denmark, Georgia, South Africa, and Spain; while a number of US states have legalized the drug for recreational use, including California, Colorado, Maine, Massachusetts, Nevada, Oregon, and Washington. The US market is expected to be worth up to $11.2 billion by 2022.
The rapid growth of the recreational cannabis market presents a significant opportunity for investors looking to capitalize on the trend. There are a number of companies that are listed on stock exchanges around the world that are involved in the cultivation, production, and sale of cannabis products; these include Aurora Cannabis (ACB), Canopy Growth Corporation (CGC), Tilray (TLRY), and Cronos Group (CRON).
The Best Cannabis Stocks to Buy in 2019
Aurora Cannabis Inc. (ACB)
2019 is going to be an important year for the cannabis industry. After a rocky start to 2018, the industry is poised for a period of significant growth. Numerous catalysts are coming into play that could lead to a boom in the sector.
One of the biggest catalysts is the legalization of recreational cannabis in Canada. This event is set to take place on October 17th and will open up the Canadian market to a whole new group of potential customers. Aurora Cannabis (ACB) is one of the leading companies positioned to capitalize on this opportunity.
Aurora Cannabis is a Canadian-based company that cultivates, manufactures, and sells medical cannabis products. The company has been one of the fastest-growing in the industry and has built up a large customer base. In addition to Canada, Aurora Cannabis has operations in multiple other countries including Germany, Italy, Portugal, Spain, and Australia.
The company recently received a license to cultivate cannabis in Denmark and is in the process of constructing a 1 million square foot production facility in Odense. This facility is expected to be completed by mid-2019 and will allow Aurora Cannabis to expand its European footprint.
With operations in multiple countries and a strong position in Canada, Aurora Cannabis is well-positioned for growth in 2019. The stock has already started to move higher in anticipation of the catalysts mentioned above and could continue to move higher as we get closer to October 17th.
Canopy Growth Corporation (CGC)
Canopy Growth Corporation (CGC) is one of the largest cannabis companies in the world, with a market cap of over $10 billion. They are a vertically integrated company, with operations in over a dozen countries. They offer a wide range of products, including dried and fresh cannabis, cannabis oil, capsules, and pre-rolled joints. They also have a strong presence in the CBD market through their subsidiary, CWB Hemp. Canopy Growth has partnerships with some of the biggest names in the business, including Constellation Brands and Snoop Dogg.
Aphria Inc. (APH)
Aphria Inc. (APH) is one of the leading cannabis companies in the world, with operations in several countries across the globe. The company produces and sells a variety of cannabis products, including dried flowers, oils, and edibles. Aphria also has a portfolio of CBD products. In addition to its own products, the company has partnerships with a number of leading brands in the cannabis industry, including MedReleaf, Green Organic Dutchman, and CannTrust.
Conclusion
In conclusion, the best cannabis stock to buy in 2019 is Canopy Growth Corporation (CGC). Canopy Growth is the largest cannabis company in the world and is expected to continue to grow at a rapid pace. Canopy Growth has a strong foothold in both the Canadian and US markets and is expanding into new markets around the world. If you are looking for a solid investment in the cannabis industry, Canopy Growth is a good choice.
