Growth stocks don’t get much more exciting than recreational cannabis, a brand-new market that is still establishing itself while also rewarding strategic investors. Though the actual moment of Canadian legalization may not have seen the meteoric growth in pot stocks that the market expected, there is certainly still plenty of upside to be had if investors know where to look.
The popular choices for upside
Two top contenders for CBD exposure
Investors who like to diversify with as few stocks as possible should find Village Farms an interesting play. Growing bell peppers, tomatoes, and cucumbers for the North American market, Village Farms also gives investors access to basic consumer staples, making for a classically defensive stock that could weather a potential market downturn. The stock has decent growth potential and is fairly healthy in terms of its balance sheet.
The bottom line
Cannabis investors seeking access to the massive upside potential from CBD growth should consider stacking shares in Cronos, lifestyle-focused Neptune Wellness Solutions, expanding Charlotte’s Web, and diversified Village Farms. The latter is a defensive, low-exposure option that could satisfy low-risk investors also seeking exposure to consumer staples, while Cronos and Charlotte’s Web in particular are popular stocks among cannabis stockholders seeking high-growth investments.
Victoria Hetherington has no position in any of the stocks mentioned. The Motley Fool owns shares of Charlotte’s Web Holdings and Village Farms International, Inc. Village Farms is a recommendation of Hidden Gems Canada.” data-reactid=”41″>Fool contributor Victoria Hetherington has no position in any of the stocks mentioned. The Motley Fool owns shares of Charlotte’s Web Holdings and Village Farms International, Inc. Village Farms is a recommendation of Hidden Gems Canada.
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