Today’s date means big celebrations for pot around the world. As medical and recreational marijuana gains increasing legal status in the States and elsewhere, 4/20 grows in significance. Plus, each year, the number of states that legalize some form of cannabis increases, which created a new investment niche with stocks rising on the New York Stock Exchange.
Currently, according to Investopedia, more than 200 cannabis companies trade daily — pretty much any company that deals with marijuana products including cannabis growers, pharmaceutical companies, and other related products. The difficulty comes in trying to weed out the winners from the losers in these pot stocks.
While marijuana remains illegal at the federal level in the U.S., companies dealing in cannabis still trade publicly on the stock exchange.
Here are four marijuana stocks to consider on the NYSE:
While many investors likely think of Corona or Charles Smith Wines or Svedka vodka when they see the name Constellation Brands (NYSE:STZ), the company took steps last year to become a significant player in the U.S. cannabis industry with the purchase of 9.9 percent of Canada’s Canopy Growth. According to the Motley Fool website, this possibly overlooked marijuana stock is one to keep an eye on. The reason? They announced plans to produce a cannabis-infused beer, which sounds like a product consumers want. Shares of the stock traded slightly down yesterday ending the day at $229.62.
Innovative Industrial Properties (NYSE:IIPR) presents another, less costly option for the potential weed investor. Yesterday the stock closed at $32.45, and its all-time trading high is $36.57. According to the Green Market Report, IIPR debuted on the exchange on Dec. 1, 2016. The company owns and leases real estate to medical marijuana companies.
Closing yesterday at just $0.64, India Globalization Capital (NYSE:IGC) gives investors a way to get in on the green investing trend at a low price point. This international company works in both infrastructure and cannabis-related pharmaceutical research. In the U.S. the company’s research focuses on phytocannabinoid-based treatments for conditions like Alzheimer’s, pain, and nausea among others. For investors who might also be interested in blockchain technology, late last year IGC announced a plan to develop a blockchain-based platform to solve marijuana-industry-related issues, according to Global Newswire.
Finally, a somewhat shocking company to consider is ScottsMiracle-Gro (NYSE:SMG). The lawn and garden care product company shocked many people in the pot industry when its CEO Jim Hagedorn announced a $500 million investment in cannabis. SMG’s approach to the industry is through hydroponics acquisitions and technology along with pesticides explicitly tailored to marijuana. Yesterday the company’s stock price fell slightly to $82.26 by the end of trading.
With many states legalizing some form of marijuana, pot stocks appear to be on their way up, and 4/20 might be a great time to investigate potential investments in weed.