GrowGeneration Emerges as Best Cannabis Stock of 2020Posted by On

GrowGeneration Corp., the largest hydroponic garden-center chain in North America, is on a tear worthy of its name.

The gardening supply company (GRWG) has gained over 700% so far this year, making it the best-performing cannabis stock of 2020 amid a sector-wide rally on hopes the U.S. is poised for federal legalization after the election.

Investors are drawn to the $1.6 billion retailer, which sells equipment used to grow pot, as it’s one of the few U.S.-based cannabis plays listed on the Nasdaq. It’s also free of the legal risks that growers pose as it doesn’t actually sell the plant itself.

“Our success is directly tied to the growth of the cannabis industry, which is exploding,” Chief Executive Officer Darren Lampert said in an interview.

The initial investment of starting a grow operation can require thousands of dollars in costs for grow lights, fans and other equipment. And while GrowGeneration caters to general at-home gardeners, Lampert said its top focus is on pot. “That’s where most of the money is made,” he said.

With Democrat Joe Biden claiming victory in the U.S. presidential election and five additional states voting to legalize cannabis on election night, shares in cannabis stocks including Halo Labs Inc. and Aurora Cannabis Inc. have soared. This has helped the BI Global Cannabis Competitive Peers index to pare back…

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