The expanding marijuana industry is really starting to rake in the cash, with legal sales reaching to $6.7 billion in 2016 alone. Now that more states, including California, have jumped on the legalization bandwagon, experts are saying that number may shoot up to as much as three times that much.
All of this profit is making a lot of people in the marijuana industry quite excited, but it’s also perking up the ears of investors as well. The narrative isn’t all dollar signs–many people see uncertainty in the weed industry because of a shifting legal landscape, and because of how brand new the industry and its entrepreneurs are.
But regardless, many people are placing their bets that investing in the right marijuana stocks will yield great results. If you’re one of those people with a little money to invest, you might consider one of the following stocks, recommended by the GOBanking Rates:
- AbbVie (ABBV)This biopharmaceutical firm got started in 2013 as a spin-off of Abbott Labs. The company has an FDA approved drug called Marinol, 28,000 employees and is not solely a cannabis-based organization. The market cap is $101.7 billion, the price-to-earnings ratio was 16.8, and the EPS was estimated at $3.65 by the end of 2016.
- Medicine Man Technologies (MDCL)Medicine Man Technologies provides licensing and consulting services to cultivators, dispensaries, investors and vendors in the weed industry. Though the market cap is just $18 million and lost 2 cents per share in 2016, sales have been steadily growing indicating great potential for the future.
- Cara Therapeutics (CARA)One of the most common hesitations for potential investors in marijuana is the worry of the legal landscape changing. Investing in Cara Therapeutics may be the right choice for these investors. The company focuses on pain relieving medicines. They do have one cannabis-based drug developing, but its real potential is in another drug called CR845 which may provide the same kind of pain relief as many opioids, without the bad side effects. It has a market cap of $525 million and lost $2.10 in 2016, but recent stocks show great potential through people’s confidence in CR845.