At times, marijuana stocks have the ability to be the best-performing stocks in the market. They can catch fire — no pun intended — on headlines or reports and scorch higher. During some of these runs, it’s not odd to see the stocks double or triple in value over a short period of time.
A high level of short interest also helps spark a nice move. In other words, bears put on a number bets to the downside, shorting these stocks as they look for a big move lower. Oftentimes, these bears get exactly what they’re looking for, as marijuana stocks tend to be a volatile bunch.
However, sometimes these bets backfire.
High short interest can lead to a short squeeze, like what we saw with GameStop (NYSE:GME) and all of the Reddit hype earlier this year. These large short positions have to be unwound through buy orders and when coupled with natural buyers, can really help drive the stock price higher.
As authorities continue to decriminalize and legalize cannabis use on a state-by-state basis, investors are also waiting on a more favorable federal stance.
As that likelihood draws closer, let’s look at seven marijuana stocks to buy.
- Canopy Growth (NYSE:CGC)
- Constellation Brands (NYSE:STZ)
- Aphria (NYSE:APHA)
- Tilray (NASDAQ:TLRY)
- Cronos (NASDAQ:CRON)
- GrowGeneration (NASDAQ:GRWG)
- Curaleaf (OTCMKTS:CURLF)
For comparison purposes, we are measuring year-to-date performance against the ETFMG Alternative Harvest ETF (NYSEArca:MJ), a cannabis-focused exchange-traded fund…
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At times, marijuana stocks have the ability to be the best-performing stocks in the market. They can catch fire — no pun intended — on headlines or reports and scorch higher. During some of these runs, it’s not odd to see the stocks double or triple in value over a short period of time.
A high level of short interest also helps spark a nice move. In other words, bears put on a number bets to the downside, shorting these stocks as they look for a big move lower. Oftentimes, these bears get exactly what they’re looking for, as marijuana stocks tend to be a volatile bunch.
However, sometimes these bets backfire.
High short interest can lead to a short squeeze, like what we saw with GameStop (NYSE:GME) and all of the Reddit hype earlier this year. These large short positions have to be unwound through buy orders and when coupled with natural buyers, can really help drive the stock price higher.
As authorities continue to decriminalize and legalize cannabis use on a state-by-state basis, investors are also waiting on a more favorable federal stance.
As that likelihood draws closer, let’s look at seven marijuana stocks to buy.
- Canopy Growth (NYSE:CGC)
- Constellation Brands (NYSE:STZ)
- Aphria (NYSE:APHA)
- Tilray (NASDAQ:TLRY)
- Cronos (NASDAQ:CRON)
- GrowGeneration (NASDAQ:GRWG)
- Curaleaf (OTCMKTS:CURLF)
For comparison purposes, we are measuring year-to-date performance against the ETFMG Alternative Harvest ETF (NYSEArca:MJ), a cannabis-focused exchange-traded fund…
