Though it probably goes without saying, it should be noted that marijuana stocks have been on fire over the trailing year. All but one of the 13 marijuana stocks with market caps above $200 million are up on a trailing-12-month basis, and two-thirds of those that are up have at least doubled in value.
Marijuana stocks have mostly been unstoppable
Why such love for the green rush? Look no further than rapidly changing public perceptions of the drug, as well as legal sales figures.
According to both the 2016 Gallup poll and the more recent CBS News poll, an all-time record percentage of respondents — 60% and 61%, respectively — want to see marijuana legalized across the country. If pollsters focus purely on medical cannabis, favorability toward legalization shoots to somewhere in the neighborhood of 90%, depending on the source of the survey. With such growing acceptance of cannabis, marijuana stock investors fully anticipate that recreational and medical sales will continue to thrive.
From a sales perspective, a recent Marijuana Business Daily report titled “Marijuana Business Factbook 2017” found that U.S. sales are expected to grow approximately 30% this year to a range of $5.1 billion to $6.1 billion, with legal recreational and medical sales combined reaching a projected $17 billion by 2021. Between 2016 and 2021 we’re looking at 300% sales growth. Investors would struggle to find more consistent growth elsewhere, which is why they’ve flocked to pot stocks. [Read more at Madison.com]