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This story originally appeared on MarijuanaStocks
Investing In Cannabis Stocks Long Term In June
Are you looking for ways to invest in marijuana stocks for the long term? In 2021 top cannabis stocks offer investors exposure to one of the fastest-growing markets in the world. In the next five years, cannabis sales are predicted to more than double. Actually, according to a BDSA report, global cannabis sales are expected to grow from $21.3 billion in 2020 to $55.9 billion in 2026.
In the US this growth will be the most significant with the market growth across the US as more states legalize cannabis use. In 2021 the cannabis sector rallied at the top of the year seeing significant upside in January and early February. For the months that followed top marijuana stocks began to show declines in market value until the end of May.
Now in June, the cannabis sector seems to be showing some upward momentum in the market. So, is now a good time to find the best cannabis stocks to buy for the summer of 2021? As it stands top pot stocks could have a significant return for investors. But because market volatility is known to be expected in top marijuana stocks more investors prefer to use short-term trading methods when investing in the sector.
Better Marijuana Stocks For Long Term Investing
Currently, many day traders and swing traders continue capitalizing on the price swings that are traditionally part of the sector. But there is substantial long-term potential in the best marijuana stocks to invest in. In general, most of the volatility can be seen in marijuana penny stocks and the vertically integrated cannabis stocks in the market. But there are cannabis stocks that may provide more stability for investors.
Specifically, ancillary marijuana stocks have shown more long-term potential in the last few years. Another area that has also shown stability is medicinal marijuana stocks in 2021. In some cases, these cannabis companies have shown market stability and also give a dividend to investors as an incentive for the long hold. With so much growth potential in the sector investment into top marijuana stocks in 2021 could produce massive gains in the future.
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Finding the best pot stocks to buy requires some due diligence on the part of the investor. In reality, researching a company’s financials and studying how the stock performs in the market can help a trader establish the best position for their investment. With this in mind, we can research some of the best marijuana stocks for long-term investing.
Marijuana Stocks To Watch
- The Scotts Miracle-Gro Company (NYSE:SMG)
- AbbVie Inc. (NYSE:ABBV)
The Scotts Miracle-Gro Company
In June Scotts Miracle-Gro increased its fiscal 2021 guidance due to continued strength in both the US consumer and Hawthorne segments. For investors not familiar with Scott’s, the company is a leading marketer of branded consumer lawn and gardening products. Specifically, its wholly-owned subsidiary Hawthorne Gardening is a leading supplier of nutrients, lighting, and hydroponic equipment. In the second quarter, Hawthorne beat its sales guidance with sales rising 66% year over year to $363.8 million. For the fiscal second quarter, Scott’s reported sales of $1.8 billion up from $1.38 billion a year ago. Hawthorne segment profits increased 74% year over year to $41.4 million.
Currently, because of Hawthorne’s performance, Scott’s now expects a sales increase of 30-40% for fiscal 2021 in that segment. As an incentive for long-term investing Scott’s currently pays an annual dividend of $2.48 per share with a dividend yield of 1.23%. Given that Scott’s provides investors with exposure to the cannabis industry and consumer gardening SMG stock could have the potential for the long-term investor.
SMG stock closed on June 10th at $194.05 down 2.56% year to date. In April SMG stock reached a high of $254.34 and has shed 19.80% in the past month of trading. According to analysts at CNN Business SMG stock has a 12-month median price target of $300.00 per share. In essence, this would be an increase of 54.56% from current levels. For this reason, SMG stock could be one of the best marijuana stocks to buy for long-term investing.
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Currently, one of the world’s top pharmaceuticals AbbVie Inc. continues to deliver innovative medicines to help solve the world’s health issues. The company is one of the largest publicly trading medicinal companies by market cap and is focused on the therapeutics market. In particular, AbbVie provides medical solutions in areas like immunology, oncology, neuroscience, eye care, virology, women’s health, and gastroenterology. As for cannabis AbbVie then called Abbott made the acquisition of Solvay’s pharmaceutical division in 2010.
As a result, AbbVie now has the drug Marinol in its catalog which is a cannabinoid-based medicine that is one of the first FDA-approved cannabis drugs on the market. Doctors prescribe the drug for patients with nausea and vomiting from cancer medications. In addition, some doctors prescribe Marinol to people with AIDs to combat the lack of appetite. In its most recent first quarter 2021 financials, the company delivered net revenue of $13.010 billion on a GAAP basis. This is an increase of 51.0% on a reported basis with adjusted net revenues of $12.935 billion. At the present time, Abbvie pays an annual dividend of$5.20 per share with a dividend yield of 4.56%.
ABBV stock closed on June 10th at $116.24 and is up 8.48% year to date. In May ABBV stock reached a 52-week high of $118.28. According to analysts at Tip Ranks, ABBV stock has a 12-month average forecast price target of $122.36 per share. This would represent an increase of 5.26% from its last price. With this in mind, ABBV stock could be a top marijuana stock to buy for your long-term portfolio.
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