5 Cannabis Stocks With “Lit” Growth Prospects

Can the cannabis sector deliver the green? This is the question that has crept into the minds of investors given both the supply issues in Canada and high tax rates in the U.S. that have hampered the market. Canadian regulators are partly to blame for supply shortages as they have been overloaded by cultivation, processing and sales license application backlogs, with black market producers happily filling any void. In the U.S., the cannabis sector has been bogged down by high tax rates, which can amount to 45% in some states. As a result, the high prices have driven many customers back to the black market. That’s not to say that lucrative opportunities can’t be found within the budding cannabis space. Analysts remind investors that the industry is still in its early stages and needs time to mature. Canada was the first industrialized country to legalize marijuana, so a learning curve should be somewhat expected. Not to mention top investment firm, Stifel Nicolaus, has predicted global cannabis spending will reach $200 billion in the next decade, up from $10.9 billion in 2018. Bearing this in mind, I set out to find the cannabis stocks whose growth narratives are still burning strong. Using the TipRanks Stock Screener, I was able to pinpoint five cannabis names that each have “lit” upside potential from the current share price. Let’s dig in.