My Top Stock For The Next Five Years

Disclaimer: I’m not a financial professional, and the opinions below are my own. Research stocks that you wish to invest your capital in.

I’m not a stock expert by any means, but I do understand an opportunity when I see one. Most people are looking for an up and coming market to invest their dollars in; whether it be blockchain, cannabis, or artificial intelligence. With the ongoing legalization of cannabis throughout the United States, and the passing of law that made recreational cannabis legal in Canada (2018), we could potentially see the explosion of an upcoming industry.

When new markets pop up, it is important to consider what businesses are to grow within an exploding market. When it comes to the cannabis industry, one company stands out to me the most.

That company is Canopy Growth Corporation (NYSE: CGC).

A couple important notes on the state of the cannabis industry (Source: New Frontier Data):

  • 16% Annual compounded growth rate in the U.S. for legal cannabis sales (medical/recreational)

With a growing (and very speculative) market such as the cannabis industry, a lot of the growth is based on news leaks, and speculative (obviously) information. I try to avoid investing based on this premise, as it doesn’t provide a long term formula for growth and wealth generation.

Here are a couple of the reason’s that I believe Canopy Growth is set up for long term financial success.

  • They are the first major Canadian company to have a major presence on the U.S. farm bill.

While the company has also seen a downward trend in operating income and profit, the opportunity of a $5 billion dollar investment from one of the largest beverage makers in the world is a huge plus. With backing from such a large player in the retail space, Canopy will be able to use such a large investment towards research of new products, production facilities that will cut costs, and increasing profit margins.

The cannabis industry is getting geared up for a boom across the world, and CGC is at the forefront of what many call the next agricultural revolution.

JP

For more information regarding CGC, check out Trading View for technical data and trading tips.

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I enjoy sports, gambling, finance, and things that affect young people.

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Jeff Perkins

I enjoy sports, gambling, finance, and things that affect young people.