In case you haven’t noticed, marijuana stocks are growing like a weed. A majority of those with a market cap of at least $200 million have had their share price double or triple over the trailing year as optimism surrounding legal weed grows.
Rapidly rising sales figures have certainly played a role in boosting investor confidence in pot stocks. Marijuana Business Daily‘s newest report, “Marijuana Business Factbook 2017,” calls for 45% legal cannabis sales growth in the U.S. in 2018 and a quadrupling in total U.S. sales between 2016 and 2021 to approximately $17 billion. Consistent annual growth in the 25% to 35% range is certainly something worth paying attention to.
But underlying this growth is the real catalyst: consumers’ opinion of marijuana. In 1995, the year before California became the first state to legalize medicinal cannabis for compassionate use, only a quarter of the public wanted to see marijuana legalized nationally. By October 2017, according to Gallup’s latest poll, 64% of Americans now want to see pot legalized. That’s a major swing over just 22 years, and there appears to be enough support that lawmakers on Capitol Hill could feel pressure from their constituents to reschedule marijuana at the federal level.
Three reasons this pot stock has gained more than $1 billion in market value over the past month
Yet, even these figures pale in comparison to what Aurora Cannabis (NASDAQOTH: ACBFF) has done for its shareholders over the trailing month (Oct. 25, 2017, through Nov. 25, 2017). Whereas some of the top-performing marijuana stocks are up 20% to 40% over the trailing month, Canadian-based Aurora Cannabis has seen its shares climb by 150%. In fact, they’re up by 195% since the year began and 1,069% over the trailing two-year period. [Read more at Madison.com]