When looking at pot stocks to buy, most investors tend to look at the companies leading the market. This makes sense given the market share that these companies hold. Along with the promise for a brighter future for the cannabis industry. Considering the downtrend that we have seen in the past few months, it looks as though some of these large-cap pot stocks may not currently be a buy option. Yet investors should weigh their options before investing in different marijuana stocks.
Investing in pot stocks is a notoriously volatile industry. The large bulk of this volatility has ended up with the top pot stocks of the industry. This is not to say that there is no volatility in other areas of the market. These companies, which are the most forward-facing of any pot stocks, have not been able to cope with the massive growing pains that have swept through the market.
It does look like much of this uncertainty is shifting as the public becomes more inclined to be positive about cannabis. Additionally, new laws that are going into place are helping to shape the market into a future that could potentially see more gains at the top. For now, it seems as though we have to contend with these large fluctuations, and make our investing strategy thusly.
Pot Stock To Watch: A Large Cap Company On The Rise
HEXO Corp. (HEXO Stock Report) is one of the few pot stocks that have managed to grow while others experienced large downtrends. The company does have decent price targets considering where it is sitting right now, but this alone is not enough to invest in the company.
HEXO has around CA$130 million in free cash, which won’t last long if we look at the amount that they spent during this last quarter. As a large cannabis producer, it looks like the company is working to launch as much product as it can. Investors should continue to keep an eye on HEXO as the company presents a great opportunity for the future of the cannabis industry.
Pot Stocks To Watch: Cannabis Cultivating Company
OrganiGram Holdings (OGI Stock Report) is another one of the largest cannabis growers in the industry. The company has yielded high production at a low cost which is its main business model. OrganiGram has made 60% margins on what it produces which makes a substantial case for taking a closer look at it.
Additionally, the company is considered to have low volatility when compared to other pot stocks. With high amounts of indoor cannabis currently being grown, OrganiGram is definitely a contender amongst the big five pot stocks. With a price target of around CA$17, the company looks like it could use some time as the market continues to iron out its own issues. For now, investors should keep an eye on this key pot stock to watch.