How Can The Past Help Determine The Future of Marijuana Stocks

What Will The Next Few Months Look Like Pot Stocks?

Throughout the month of August, we saw many top marijuana stocks to watch become big gainers. This includes pot stocks like Valens Corp. (OTC:VLNCF) and Jushi Holdings Inc. (OTC:JUSHF), which posted gains of 13% and 20% during August, respectively. While these marijuana stocks are only a few of the major ones to watch, they do represent the future of the cannabis industry. Industry leaders such as Tilray Inc. (NASDAQ:TLRY) and ancillary players like Altria Group Inc. (NYSE:MO), have also shown gains, but at different stages.

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Currently, a lot of the focus tends to be on U.S. marijuana stocks where major steps have been taken in the past few months. In the U.S. and Canada, we have seen a great deal of demand increase in only a short period of time. Although there is still a long way to go, things are looking quite good for pot stocks throughout the rest of 2020. As usual, there will always be hurdles in relation to market volatility and legislation. But, these hurdles are slowly being overcome by institutional investors and the public alike.

The U.S. Cannabis Industry Continues to Show Promise

Although Canada was the first G7 nation to legalize marijuana recreationally, a lot of the focus tends to be on the U.S. This is mostly due to the sheer size of the U.S. cannabis industry. As of August, the U.S. represents almost 10 times as much volume in terms of sales as Canada. In addition, this is considering that America has yet to put in legislation to make marijuana legal federally. If this were to occur, it would be one of the largest updates in the history of the cannabis industry.

When we look at the U.S., we have to look at the state of California. California represents the largest statewide cannabis industry in the country. With thousands of dispensaries operating around the state, California is often used as a benchmark for where the industry is headed. Californian pot stocks like TerraTech Corp. (OTC:TRTC), are leading the fight for a better cannabis industry in the state. But, there are still several challenges ahead. If these challenges are able to be addressed, there’s no telling how far the Californian cannabis industry could go.

Pot Stocks Financials Continues To Be a Marker Of Success

When we look at marijuana stocks or any stocks for that matter, financials are one of the major aspects to not overlook. Because of the demand increase from COVID, many leading pot stocks have posted much better gains than analysts expected. This has led to an increase in the amount of retail and institutional investors who have an interest in the cannabis industry. Factors to look for include EBITDA, revenue, and sales. These can all help to determine where a pot stock might be in the short term.

pot stock portfolio

In addition, investors must also consider the long term future of our positions in the market. When it comes to pot stocks, building a long term strategy may be more difficult than one would think. But, investors and the public alike are all waiting for more growth to occur. And if it does, the cannabis industry could continue to grow at an incredible pace in September and throughout 2021.

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