From Michael Vodicka, Editor of Cannabis Stock Trades
The U.S. economy is in a funk.
Second-quarter gross domestic product (GDP), the broadest indicator of economic strength, clocked in at just 1.1%, well below expectations of 2.4%.
In the meantime, the S&P 500 is mired in a nasty earnings recession. Earnings have now declined for the last five quarters. The last time that happened was in 2009 during the financial crisis.
The weak economy has created a dilemma. Investors are desperately searching for growth.
I’ve got the solution.
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Legal cannabis is the fastest growing industry in North America.
In 2015, when the U.S. economy grew 2.4%, the legal cannabis industry grew 17%.
In the next four years, while the U.S. economy is expected to grow less than 12%, the legal cannabis industry is expected to grow 250% to $22 billion in annual sales.
A little-known group of cannabis companies that trade on the US and Canadian stock exchanges are in the position to deliver huge returns to early shareholders.
In fact, it’s already happening.
In 2016 the S&P 500 has returned a little more than 5%.
In the meantime, the MJIC North American Marijuana Index, an index that tracks the performance of 39 North American marijuana stocks, is up more than 100%. Take a look at the chart below.
From this group, I have identified three early industry leaders that are in position to grow into global leaders and deliver market-beating returns to investors in the next three to five years.
Canopy Growth Corporation (TSE: CGC.TO) is Canada’s largest medical marijuana company. With Canada’s medical marijuana market booming, Canopy’s revenue is up 41% in the last 12 months. That impressive revenue growth has shares up 53% on the year. Take a look below.
Terra Tech Corp. (OTC: TRTC) is a U.S. based cannabis company and is a popular name amongst pot stock enthusiasts. It’s the only vertically integrated cannabis company in the U.S., with its activities extending from production to dispensary ownership in California and Nevada.
Terra Tech is the only publicly traded cannabis company that owns dispensaries. Terra Tech is having an incredible year. Shares are up 336% in 2016. Take a look below.
GW Pharmaceuticals (NYSE: GWPH) is a U.K. based pharmaceutical company. GW is already a global leader in marijuana and THC based pharmaceuticals. The company has been researching medical marijuana since the 1990s.
Although that research had long failed to lead to any commercial breakouts, that changed in 2014 when Phase III clinical trials showed one of its marijuana-based drugs helped reduce epilepsy. Today, GW is on pace to complete four Phase III trials for marijuana-based pharmaceuticals by 2017. The market is clearly expecting good news. Shares of GW are up 91% in 2016.
These are just a few examples of the exciting companies operating in the legal cannabis industry.
There are dozens more that are in position to grow into future global leaders and deliver market-beating returns to early investors.
If you’re looking for the next three cannabis stocks that could jump more than 100% in less than six months, sign up for the free Cannabis Stock Trades newsletter.
Editor, Cannabis Stock Trades
Disclosure: Michael Vodicka owns shares of Canopy Growth Corp (CGC), Aphria (APH), Organigram (OGI), Terra Tech (TRTC) and Kush Bottles (KSHB).