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2 cannabis stocks to watch in 2023

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Cannabis stocks have received considerable attention in recent years. This comes as more countries and states legalize marijuana for recreational and medicinal use. According to a report by Grand View Research, the global legal marijuana market size was valued at USD 13.2 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 25.5% from 2022 to 2030.

This trend has led to an increase in the number of publicly traded cannabis-based companies. This has attracted a large number of investors looking to capitalize on this booming industry.

What are cannabis stocks?

Cannabis stocks refer to stocks of companies that produce, distribute or sell marijuana and related products. These companies may be publicly listed on exchanges such as the Nasdaq or the London Stock Exchange (LSE). They may also be listed on over-the-counter markets or via private placements.

Investing in cannabis stocks can be a risky proposition. This is partly due to the fact that the industry is still in its infancy. As well as the fact that they are subject to a number of regulatory and legal challenges. Additionally, the cannabis market is highly competitive with a large number of companies vying for market share.

Before investing in cannabis stocks, it is important to do your due diligence and carefully research the company you are considering investing in. Look for companies with solid finances, a clear business plan and a track record of success. It’s also a good idea to diversify your portfolio by investing in different companies rather than putting all your eggs in one basket. If this makes you want to invest in the cannabis sector in 2023, here are two companies to consider adding to your stock market watch list.

Cannabis stocks to buy [Or Avoid] In 2023

Curaleaf Holdings (CURLF stock)

The first standing Curaleaf Holdings Inc. (CURLF) is a leading player in the cannabis industry, specializing in the medical and adult use markets. Curaleaf grows, processes, markets and distributes a variety of cannabis products including flowers, pre-rolls, vapes, concentrates and extracts.

In November, Curaleaf released its third quarter 2022 financial results. In detail, the company reported a loss of $0.07 per share along with revenue of $339.7 million for the 3rd quarter of 2022. In addition , during the quarter, the company reported that it generated $60 million in positive operating cash flow and $71 million in the first nine months of 2022.

Year-to-date, CURLF shares have fallen 55.54%. Meanwhile, in Wednesday’s trading session, Curaleaf stock is trading down 4.39% to $3.92 per share.

CULF Stock Chart
Source: TD Ameritrade Terms of Use

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Innovative Industrial Properties (IIPR Action)

Following, Innovative industrial properties (IIPR) is a real estate investment trust (REIT) that focuses on the cannabis industry. IIP acquires, owns and leases properties to state-licensed operators in the medical cannabis industry.

This month, the company announced its fourth quarter 2022 dividend. Taking a dip, the IIPR announced that it would pay a dividend of $1.80 per common share for the fourth quarter of 2022. This represents an increase of 24% compared to the dividends of the previous year. Next, the company also declared a quarterly dividend of $0.5625 per share of its 9.00% Series A Cumulative Redeemable Preferred Shares. These dividends will be paid on January 13, 2023 to shareholders of record as of December 30, 2022.

Year-to-date, IIPR shares have fallen 59.54%. Meanwhile, in Wednesday’s mid-morning trading session, IIPR stock is trading down 0.92% at $100.69 per share.

IIPR Stock Chart
Source: TD Ameritrade Terms of Use

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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