Top cannabis stocks to buy in June

Published May 29, 2020 01:00 p.m. ET
iStock / Muralinath

The pandemic hit us hard, not only in life but in the cannabis stocks that we have invested in. Fortunately, as quickly as the pandemic crept into our lives and pockets, it will fade. Gratefully the economy is gradually returning to normality. Marijuana stocks are rebounding, but is yours?

Canopy Growth Corp

This is the largest cannabis producer in Canada, and they established that position both through market shares and market capitalization. If you base your views on a balance sheet, look no further, as this company has one of the best in the industry. The help from the deep-pocketed minority investor Constellation Brands, the international alcohol giant, was a bonus. As with any stock, there is no guarantee, but putting your faith and money in Canopy Growth Corp is one of the safest bets for cannabis stocks in June.

Cronos Stock

If you are seeking a company with one of the healthiest balance sheets today, look no further. You have found one of the best cannabis stocks today. The company can withstand the impact from COVID 19, insolvency of this company is not an issue for today or anytime shortly. The second positive aspect is the ample balance that provides the company with the firepower to invest in strategic growth after the impact of COVID 19. The firepower will give the needed capitalization for Cronos to capitalize on the rebounding Canadian cannabis demand projected for the second half of 2020.

Aphria (APHA)

A breath of life has been given to this stock, and there are a couple of reasons for this. First, the Canadian cannabis market will rebound, so there will be more store openings and new products in the near future. Secondly, Apheria’s revenue is growing, and volume growth is accelerating, which means that their growth margins are expanding. That’s why the companies adjusted profits are on the rise. Third, there is a lot of cash in this company. 345 million dollars in cash and investments have helped the company to ride out the COVID-19 storm and successfully come out on the other side.

Aurora

The second-best player in the Canadian cannabis market is Aurora. It’s sad but true that Aurora has one of the worst balance sheets and liquidity. The company has a significant cash burn problem. However, management is fixing the issue. The changes in the company plans are good news for investors. The result will be lower operating costs and fewer capital expenses. The reported substantial third-quarter numbers indicate positive results. Management sees the favourable changes that the company is implementing, and the result will be that this pot stock will fly high and hard.

Curaleaf Holdings (CURLF)

Curaleaf is operating in 2 states and has 52 dispensaries. In their third quarter, 129 million dollars in revenue was reported. Currently, this is the only US marijuana producer with this level of exposure to the recreational and medical cannabis markets through their cultivation, dispensary locations, and processing.

In reality, it seems that all pot stocks are going to rise after the pandemic. Doing your research and paying attention to the rising stock market amid the COVID-19 virus is paramount if you want a profitable option. The COVID-19 virus has adversely affected the cannabis stock market and waiting out the time for cannabis stocks to recover and rise again requires patience, confidence, and cash.

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