4 Excellent Medical Marijuana Stocks To Buy In 2017
The Marijuana Craze
Some folks might think that marijuana legalization is a chance for a company like Philip Morris to begin making and distributing marijuana cigarettes. It's a lot more accurate to state that marijuana's real potential is for medicinal uses. Companies which are in the process of developing those medical applications using the plant are the ones that stand to benefit the most in the modern marketplace forming up.
There's a rush to cash in on the craze surrounding medical marijuana stocks to buy, meaning hundreds of different start-ups are getting created, but the chances are good that most of these are going to fall in the end. The ones winning so far are companies which are already in business in other things but adding an emphasis on marijuana to their work, but even winners have recently seen stock price drops lately. Four marijuana-related stocks do have the potential for possibly substantial gains though. This quartet of shares was chosen based on the marijuana-related products they feature in either use or are awaiting approval from the FDA. All these figures presented here were current as of Aug. 4, 2017.
ABBV - AbbVie
This pharmaceutical company is one that's ahead of the curve, given that it has FDA-approved Marinol already on the market as a cannabis-based drug. Marinol is designed to relieve some of the vomiting or nausea that chemotherapy patients suffer, as well as help out AIDS patients that might lose their appetite. It's critical to take note of the fact that Marinol isn't actually the flagship drug of AbbVie. In truth, it's not even the biggest seller for the business.
This company reported a revenue increase over the last four years. Additionally, there have been steady increases in their operating income. The business is already taking advantage of several useful drugs, such as Marinol. This is one way to hop on the marijuana trend but not incurring total exposure to this plant. With a Dividend & Yield of 2.56 (3.62%), ABBV's Market Cap registers at 112.983B, with an EPS (TTM) of 3.86 and an Average Volume of 5,587,270.
SMG - Scott's Miracle-Gro
This company has chosen a rather exciting way to jump into the boom of marijuana in the economy. This business is famous of course for its lines of lawn and garden-care products, but it's actually in the development phase of products for the growers of cannabis, such as pesticides to be used on marijuana plants. Since December of 2016, the stock has shown a sideways pattern, dropping quite sharply from about $97 down to roughly $83 per individual share. That looked at the time like it might be solid ground for a fresh breakout, but the stock dropped instead.
It does look to be on the upward move again at the time of writing. The quarter ending at the start of April 2017 showed dramatic drops in revenue, but the overall income for the business had risen. However, with the recent price volatility, this stock might be one to keep an eye on rather than buy. With a Dividend & Yield of 2.12 (2.22%), this business' Market Cap holds at 5.77B, with an EPS (TTM) of 4.66 and Average Volume of 512,507.
CRBP - Corbus Pharmaceuticals
This stock indeed has gone through rather dramatic swings in the last dozen months. The marijuana-based drugs of this firm are in clinical trials, and hopes have risen and fallen at times. Resunab is something intended for the treatment of sclerosis, and it's had somewhat promising tests. The stock seems to have a tendency of dipping just before results announcements, followed by rallies when there are positive results. At the time of writing, Corbus is running tests to see if Resunab is a viable treatment possible for cystic fibrosis.
Given that the drug is bound to get tested again, the pattern of alternating pessimism and optimism are likely to keep playing out. The business is in a state of negative operating income with revenues barely above zero. Corbus is a business that is relying on a single drug and its potential success making it or breaking it. The EPS (TTM) for this business is -0.57, the Market Cap registers at 301.31M, and the Average Volume measures 621,206.
INSY - Insys Therapeurtics, Inc.
This business is a marketer of a number of drugs that don't involve cannabis. On the other hand, they are in an ongoing process of development involving a synthetic cannabis drug they hope to use in the treatment of childhood epilepsy. The business is also working on a particular spray technology that could be used to deliver pharmaceutical cannabinoids.
The last three years were ones of flat revenue for INSY, but the operating income had a rather sharp drop towards the conclusion of 2016, which was primarily a result of more money being spent on research matters and projects. The current gross profit is undoubtedly higher than it was just three years ago. This company stock has fallen down from a price of $15 per share, but you can reasonably expect it to level off at around $10 a share. This stock carries more volatility than most prudent investors like to see, but the movement is muted by the fact that it's a biotech stock. The EPS (TTM) is listed at -0.02, the Market Cap is registered at 721.3M, and the Average Volume measures at 606,184.
As folks start sobering up regarding the worldwide craze surrounding medical marijuana stocks to buy, the realities of it being used in both medicines and many other products are likely to start setting in. Like many other drug sources, cannabis is a story of both positive and beneficial prospects but also of multiple failures. Given that certain marijuana stocks have dropped in price indicates that these companies need to start actually delivering on the longstanding promise that medical cannabis holds, and they need to do it soon. It's best to avoid investing in marijuana based on your personal enthusiasm for it, instead of keeping your head clear and focused on drug trials and their actual results. There is definitely something intriguing about the pesticides angle, yet such a product certainly would face limited sales potential until there is a national legalization of marijuana.