Marijuana stocks have become a hot property for enthusiastic investors, especially over the past few years as cannabis has become legal across Canada and legalization continues to grow across the United States. While many stocks have been up-and-down, reports estimate that the legal marijuana market will be worth $66.3 billion by 2025, making it a good long-term investment. If you’re interested in investing, look into the top marijuana stocks on the NASDAQ.
The NASDAQ is one of the biggest stock exchanges in the world. Based out of New York, NASDAQ became the first electronic stock exchange in the world and has long been associated with some of the most innovative tech companies in the world. Now, you can find many valuable cannabis stocks on the NASDAQ if you’re interested in becoming a cannabis investor.
Much like with any industry, investing in cannabis stocks is always a risk. There’s no telling what might happen to stock values, so it’s important to do some thorough research before you invest in anything. With that said, there are many cannabis companies with potential for growth, especially as legal marijuana becomes a more stable and lucrative industry. Here are some of the top marijuana stocks on the NASDAQ to consider.
GW Pharmaceuticals (NASDAQ: GWPH)
GW Pharmaceuticals is one of the most unique yet successful marijuana stocks you can invest in right now. While most major cannabis stocks are based out of the United States or Canada, GW Pharmaceuticals is a biopharmaceutical company based out of Cambridge, United Kingdom. Their focus is on developing plant-derived therapeutics using cannabinoids, with Sativex being their most successful creation.
Sativex is the brand name for Nabiximols, a medication that uses cannabis extracts to help treat patients suffering from muscle spasms. It comes in the form of an oral spray used to help treat multiple sclerosis. The product contains both THC and CBD and, despite cannabis still being illegal in the UK, Sativex became the first legal cannabis-based product due to its ability to treat muscle spasticity.
On top of being a legal prescription drug in the United Kingdom, Sativex has now been approved in over 25 countries. What’s more, the company is now working on a CBD-based medication for epilepsy which has been approved by the US Food and Drug Administration. Due to this string of successes, GW Pharmaceuticals has become one of the most lucrative stocks in the cannabis industry and could see even further growth.
Cronos Group (NASDAQ: CRON)
Cronos Group has become one of the biggest marijuana stocks by market cap as well as the second-richest cannabis stock in terms of cash to spend. A large part of this comes from the massive 1.8 billion dollar investment Altria made in Cronos Group. The stock is now one of the best marijuana stocks on the NASDAQ by far.
Despite having some ups and downs, Cronos Group’s stock went up by over 10% between January 2019 and January 2020. This could well be a sign of things to come. Many other marijuana stocks have seemed to bounce back in 2020, and as the industry becomes more stable with increased legalization, higher consumer demand, and higher supply, Cronos Group looks set to grow further.
Cronos Group now owns a variety of cannabis brands, including Peace Naturals, Cove, Spinach, and Lord Jones. Their products cover everything from medical marijuana to CBD. As a top player in the fast-growing cannabis industry with plenty of cash to spend, Cronos Group is definitely a stock worth looking into.
Tilray (NASDAQ: TLRY)
Tilray is a medical cannabis company based out of Toronto, Canada. It was the first producer of medical cannabis to become GMP certified in North America. It also became the first cannabis company to have an IPO on the NASDAQ. The company now has operations across the world including Germany, Portugal, New Zealand, Australia, and Latin America.
They offer a wide range of medical cannabis products, including a variety of strains as well as CBD products. They’re also dedicated to advancing scientific understanding of medical cannabis and have participated in numerous clinical trials. Notably, they were also the first Canadian company to export medical cannabis to the United States for clinical trials.
Although Tilray stock has reached massive heights on the stock market in the past few years, it had a largely unsuccessful 2019. Nonetheless, Tilray stock has surged in the past week in light of management changes and it’s a great time to invest as the company seems to be headed towards better days in 2020.
Arena Pharmaceuticals, Inc. (NASDAQ: ARNA)
Arena Pharmaceuticals, Inc. is a biopharmaceutical company based in San Diego, California. The company focuses on producing and delivering transformational medicines covering a wide range of therapeutic areas. Although the company is not purely focused on cannabis, they’ve recently become a hot stock for cannabis investors due to their development of the APD371 drug.
APD371 or Olorinab is a drug currently being developed by Arena Pharmaceuticals. It acts as an agonist of cannabinoid receptors in the body and has shown promising results in clinical trials for the treatment of Crohn’s disease. The drug is intended to help relieve gastrointestinal pain without any psychoactive effects.
Although many investors look into companies focused on consumer cannabis products, the medical cannabis industry is arguably the strongest sector to invest in. Cannabinoid-based medicines have the potential to take off even in countries where cannabis is illegal. Arena Pharmaceuticals, Inc. stock has remained relatively stable the past few months but could grow throughout 2020.
Cara Therapeutics Inc. (NASDAQ: CARA)
Cara Therapeutics Inc. is a clinical-stage biopharmaceutical company that focuses on the development of a range of treatments for pain and pruritis- the medical term for severe itching. This is another biopharmaceutical company whose scope ranges far beyond cannabis. Most of their treatments are opioid-based, however, they’re currently conducting preclinical research on using cannabinoids for treating neuropathic pain.
Their preclinical data focuses on CR701, a cannabinoid receptor agonist that can treat chronic pain. Although the research is still in the early stages, it’s possible that Cara Therapeutics Inc. could delve further into the use of cannabinoid-based treatments in the future. With support for medical cannabis growing and the relatively limited risks of using cannabinoids over opioids, there’s no ruling it out.
This is another interesting stock that will require some heavy research if you plan to invest. It doesn’t show the same upsides as other options such as Arena Pharmaceuticals, Inc. or GW Pharmaceuticals. Nonetheless, it could be a sleeper pick.
Village Farms International (NASDAQ: VFF)
Village Farms International is a greenhouse production company that has been operating successfully for decades. While they spent many years growing vegetables, they announced in 2017 that they plan to start growing cannabis using many of their 240 acres of greenhouses. With the ability to produce massive profits from weed, their shares surged by 750%.
The company plans to expand its operations to include 2.2 million square feet of greenhouses for growing cannabis in Delta, British Columbia. This helps boost their potential annual production of cannabis to 150,000 kilograms. Village Farms International will likely expand even further as the demand for weed across Canada grows.
Plus, they’re not only interested in producing and supplying marijuana. They also plan to start producing hemp. With the fast-growing popularity of hemp-based CBD products in Canada and especially the United States, this move could be big for Village Farms International. While the stock has dropped in recent months, it may be a good time to buy while it’s low.
Zynerba Pharmaceuticals Inc. (NASDAQ: ZYNE)
Zynerba Pharmaceuticals is a pharmaceutical company that focuses specifically on cannabinoid-based treatments. While many other pharmaceutical companies are also developing cannabinoid-based treatments, Zynerba Pharmaceuticals has a unique goal to create innovative transdermal products for patients.
Transdermal application of cannabinoids includes products such as CBD Topicals and CBD Patches, which have shown much promise in studies. Currently, Zynerba Pharmaceuticals is working on multiple treatments to help with conditions such as epilepsy, osteoarthritis, fibromyalgia, and neuropathic pain.
In the past year, Zynerba Pharmaceuticals stock dropped as results of their clinical trials for Zygel showed adverse effects. With that said, this could still be an interesting stock to invest in as the company has the ability to bounce back, especially with cannabinoid-based medicines being in high demand.
Greenlane Holdings Inc. (NASDAQ: GNLN)
Greenlane Holdings is a company that distributes a range of cannabis accessories to customers across Canada and the United States. Their brands cover items and devices such as vaporizers, bongs, pipes, rolling papers, grinders, and everything else cannabis users need. They own numerous cannabis brands on top of being distributors for many others.
Some of the brands owned by Greenlane Holdings include Vibes, Marley Natural, and Groove. Some of the brands they distribute include PAX, JUUL, Bic, Raw, and many more. With such an impressive portfolio, Greenlane Holdings has the potential to become a true powerhouse when it comes to cannabis devices and accessories.
Greenlane Holdings started conducting an IPO on the NASDAQ back in April 2019. Although the stock has dropped significantly since opening, it could grow in 2020. They saw huge profits late last year, especially from the sales of JUUL and other e-cigarette devices. With the demand growing for cannabis and CBD vaporizers, their stock could rise throughout the year.
New Age Beverages Corp. (NASDAQ: NBEV)
New Age Beverages is a beverage manufacturer that produces all kinds of health drinks. They cover products such as kombucha, green tea, yerba mate drinks, and much more through their various brands. Recently, New Age Beverages started offering drinks infused with CBD, the non-psychoactive cannabinoid in cannabis. As such, the company has become highly interesting to cannabis investors.
They initially planned to roll-out their CBD-infused drinks last year. However, due to the complex regulations surrounding CBD foods and beverages, they had to delay the product. With that said, they still launched CBD products in the United States and in Hong Kong, both of which have contributed to their revenue.
The popularity of CBD is growing fast, with many people now using it as a daily supplement for all kinds of reasons. If regulations on CBD drinks are lifted, their stock could surge rapidly. Of course, they also have various other CBD and non-cannabis-related products to fall back on. This may be a good stock to invest in right now with the potential for long-term growth.
Sundial Growers Inc. (NASDAQ: SNDL)
Sundial Growers is a small cannabis producer based out of Alberta, Canada. Their goal is to produce top-quality cannabis strains and products throughout Canada. As well as selling dried flower-cannabis, they also offer various other cannabis products including capsules, oils, and pre-rolls.
Their stock got a brief surge last year when they launched their new Palmetto brand. The brand covers pre-rolls and vape pens, offering consumers maximum convenience when it comes to cannabis consumption. The brand initially launched in Saskatchewan and Manitoba, but with expansion into larger markets across Canada, Sundial’s stock could grow more.
While Sundial Growers is currently only a small-scale cannabis producer, their stock is much cheaper than some of their major rivals and could be a decent long-term play. This is one of the more interesting marijuana stocks on the NASDAQ that may be worth researching more.
Conclusion
Now is a great time to start investing in marijuana companies. The industry will likely see further growth this year with better infrastructure for legal cannabis in Canada and the United States along with an increase in consumer demand. What’s more, these stocks range from pharmaceutical companies focusing on cannabinoid-based treatments to cannabis growers and even beverage companies interested in CBD, so there’s plenty to diversify your portfolio.
Just like with any stock investment, make sure you do some further research yourself before investing. As promising as some stocks are, anything can happen and it’s always important to read up on companies you plan to invest in. It’s also best to invest in multiple stocks to protect your investments. However, if you’re interested in investing, the cannabis industry is well worth looking into this year.
