Cannabis stocks were in an unforgiving downward spiral in 2019. By the end of the year, the Horizons Marijuana Life Sciences ETF, which tracks the performance of cannabis stocks, was down by more than 30%. Amidst the sell-off, 2020 could turn out to be a blockbuster year, given the plenty of potential catalysts likely to fuel a bounce back.
Below are some of the cannabis stocks to watch in 2020
Aphria Inc. (NYSE: APHA)
Aphria bounce back is already gaining traction after a roller coaster 2019. The stock has already bottomed out from one-year lows, signaling renewed investor interest. The stock is likely to continue powering high as investors take note of its crown jewel German medical cannabis operation. Similarly, the opening of Canada Cannabis 2.0 market is another catalyst likely to strengthen the company’s growth metrics.
Cresco Labs Inc. (OTCMKTS: CRLBF)
Cresco Labs looks set to have a stellar 2020 as it moves to expand its footprint into the Illinois adult-use recreational market. Another catalyst likely to fuel the company’s prospects includes the acquisition of Origin House expected to strengthen the company’s competitive edge and affirm growth metrics.
OrganiGram Holdings Inc. (NASDAQ: OGI)
OrganiGram has started 2020 on a roll, after coming under immense selling pressure in the second half of 2019. The bounce-back looks set to continue as the company continues to affirm its credential in the production and distribution of dried cannabis and cannabis oil in Canada. Expansion of cannabis operation on the global scene is another development that should support the stock’s sentiments among investors consequently fuel a rally from current lows.
Village Farms International Inc. (NASDAQ: VFF)
Village firms is among the very few cannabis players that had stellar 2019. The stock rallied by more than 40% on the execution with its cannabis joint venture. Its expansion into the hemp industry as well as the stability provided by the fallback vegetable operations should continue to strengthen the company’s growth metrics and market sentiments.
Cronos Group Inc. (NASDAQ: CRON)
Cronos Group stands out from the pack on the fact that it is one of the few high-quality cannabis company to have won multibillion-dollar support of a consumer staples. The unique feature is expected to affirm the company’s credentials as one of the smartest and safest investments in 2020.
Charlotte’s Web Holdings Inc. (OTCMKTS: CWBHF)
Charlotte Web Holdings is a must watch as it appears to be trading at a discount relative to its tremendous potential. The excitement surrounding the company has to do with the potential launch of the company’s CBD products in the U.S. The fact that the company is a market share leader in CBD products should allow it to generate significant returns in the U.S market, poised to reach $23.7 billion by 2023.
Aurora Cannabis Inc. (NYSE: ACB)
Aurora Cannabis has come under immense pressure in recent months. The steep pullback presents an opportunity for investors to buy the stock at a discount. The company’s prospects should improve in 2020 with the unveiling of edibles and vapes products. Revenue growth should also excite investors as cash also becomes less of a problem.
Amyris Inc. (NASDAQ: AMRS)
While Amyris is a biotechnology company, it is increasingly becoming a key player in the cannabis industry. In addition to offering bioscience solutions, the company has also started offering health and wellness products containing cannabis. The company has already shipped its first cannabinoid-infused products to its LAVVAN partner.
Valens Groworks Corp (OTCMKTS: VLNCF)
The Valens Co is one of the fastest-growing Canadian cannabis company. The company is in a phase of robust growth depicted by robust revenue growth. A 100% plus revenue growth in the third quarter saw the company join an exclusive club of few companies generating net income. Net income in the quarter surged to $4.5 million from a net loss of $1.8 million.
Canopy Growth Corp (NYSE: CGC)
With a market cap of more than $8 billion Canopy Growth is one of the best picks for gaining exposure in the burgeoning industry. Together with its subsidiaries, the company provides great exposure to the sale of both medical and recreational cannabis. The company has also expanded its footprint into Europe in pursuit of opportunities for growth. The company is expected to be a leader in the expected rebound in 2020
