3 Top Pot Stocks Poised for a Big Recovery

Pot Stocks Best Positioned to Bounce Back?

Anyone who tells you that things as they stand right now are going exactly as planned in the marijuana industry is lying. Across the board, we’re seeing major backsliding among our top pot stocks, with few coming out of this marijuana correction unscathed.

But the thing about the marijuana industry and pot stocks in general is that they always bounce back, coming back stronger than ever.

This makes these down times not only just a fleeting nuisance, but also a real opportunity to rake in some massive gains, if you can get in at the right time.

With that in mind, we’ll be looking at the three top pot stocks that have the best chances for recovery in the coming months.

3 Top Pot Stocks for 2020

These top pot stocks were selected for a number of individual reasons, but there are some broad threads connecting them all.

The first is that each stock has rock solid fundamentals. The leadership in place is strong and the company’s numbers (revenue, growth) are similarly solid.

This means that not only is a faster recovery more likely for the company, but it’s also less likely to suffer as grievously as competitors come the next marijuana correction.

Another aspect of these companies that is appealing to investors is that each one of these companies is unique. Which is to say that each fulfills a need in the market that few other pot stocks are currently filling.

This makes them prized investment opportunities with few competitors, another good omen for success.

The final important shared trait is that these companies are also trading far below their recent highest price. That means that, in due time, they will likely regain those highs as the marijuana market continues to expand. We’ve hardly hit the maximum potential of the pot industry considering so few countries have legalized the drug, meaning that the best times are still ahead. The old highs, then, are simply good benchmarks to aim for in the next few weeks and months. In other words, they have strong potential for not only long-term growth, but also immense short-term gains.

With all that dispensed, let’s now get to the top pot stocks poised for a rebound in 2020.

Chart courtesy of StockCharts.com

OGI Stock

One marijuana company that I’ve had my eye on for a while now is OrganiGram Holdings Inc (NASDAQ:OGI).

The main reason is simple: this is a marijuana stock that many considered to be undervalued prior to the marijuana correction. The most recent adjustment in price downward makes OGI stock practically a steal with a high likelihood for growth in the coming year.

The fact is that OGI stock operates in a strong position in the marijuana industry due to its size and strength when it comes to supply agreements, production capacity, and robust revenue.

The company’s outlook only looks better when you factor in the fact that this is very much a marijuana penny stock that is still small enough to be easily acquired by a larger competitor.

All of this makes for a very strong OGI stock in the coming months.

My OGI stock prediction sees the company gaining 100% by the end of 2020, with the potential for even higher gains in that time period.

CURLF Stock

Another marijuana penny stock, Curaleaf Holdings Inc (OTCMKTS:CURLF, CNSX:CURA) is in a very unique position due to the market it operates in: the U.S.

CURLF is one of the few pot stocks that has a large foothold within the legal marijuana markets of America.

Factor in that the company is also planning to be the first to hit $1.0 billion in sales and has an ever-expanded list of facilities across the U.S., and you have one of the better marijuana stocks available right now.

The reasoning for this is simple: the company may be better positioned than any other to profit from U.S. marijuana legalization.

While many other pot stocks will assuredly find ways to enter a newly legalized U.S. pot market, at the end of the day, CURLF stock will have a huge advantage over them, so it’ll likely be one of the more successful pot companies when legalization does land.

If you’re looking for a pot stock that is likely to see massive, exponential gains within the next five years, look no further.

IIPR Stock

The final marijuana stock on our list is unique in that it’s not a traditional marijuana stock. Instead, it’s a marijuana REIT (real estate investment trust), which essentially means that it’s playing landlord to pot companies and profiting immensely from the business.

I’m talking about Innovative Industrial Properties Inc (NYSE:IIPR).

All these marijuana companies require land to grow their crops, and Innovative Industrial Properties is in the business of leasing out that land.

Growing massively in 2019, the company is one of the few pot-related stocks that has come out of the marijuana correction relatively unscathed.

Having said that, IIPR stock was still bruised in the recent past; right now it’s trading below its former high.

This means that marijuana investors looking to get in on one of the most solid pot stocks for a very decent price should strongly consider looking at IIPR stock right now.

On top of all the benefits already mentioned regarding IIPR, marijuana REITs are mandated to distribute 90% of their profits back to shareholders in the form of a dividend, so investors get both the growth potential and a healthy quarterly payout from IIPR stock, a winning combination.

Analyst Take

The marijuana correction has hit hard; many pot stocks are down substantially over the past few months. But that in no way detracts from the overall potential that is still brimming within the industry.

In fact, we’ve seen several harsh marijuana corrections before only for the overall pot stock market to bounce back stronger than ever. I see no reason why this time will be any different.

The top pot stocks, then, are those that are most likely to gain the most from the recovery. I believe the three above are excellent candidates to be the top performers in the next marijuana rush.