Although many leading marijuana stocks have come back in big numbers, not all who play are winners. It is important to look at both the long and short term numbers to see how a pot stock could perform in the near future. But, the current state of the cannabis industry has made several pot stocks look quite good for the long term. These companies span several areas of the market, and for that reason are quite diverse in their nature. But, with the cannabis industry comes quite a large amount of market volatility. It is clear that it is difficult to predict what individual marijuana stocks will do, let alone the entire market. In the short term, it does look like this comeback is strong.

But, whether or not that will last is still up in the air. For now, investors should continue to watch the different areas of the cannabis market to see what type of momentum exists there. With that in mind, finding the right marijuana stocks to watch can occur with more ease. Although the pure-play pot stocks might look like the most promising, oftentimes they can be the most volatile. This simply means that investors should not have any prejudice toward one area of the market or another. Rather, they should watch the sub-sectors to see the trajectory of each individual part of the cannabis industry.

What Is This Large Marijuana Stock Up To

Canopy Growth Corp. (CGC Stock Report) is the largest marijuana stock in the industry. The company is down around 30% from its all-time high for the 2020 year. But, the company has managed to come back quite a bit in the past few months. Recently, it released some troublesome numbers for its fourth-quarter results. Although these numbers were slightly on target, they did not help Canopy’s case. Rather what makes Canopy such an interesting marijuana stock to watch is its overall cash balance. With billions invested into the company from Constellation Brands back in the day, Canopy remains quite cash rich.

This free cash amount is larger than any other marijuana stock in the industry. For that reason, investors have continued to find confidence in the company for its long term. Of course, it has been hindered by short term issues pertaining to the coronavirus, but it does seem like sales are on the way up. The coronavirus has caused demand for cannabis to shoot up in the past few months, which could be reflected in the company’s next-quarter numbers. For now, however, investors should remain skeptical of this cannabis stock to watch.

An MSO Marijuana Stock With High Levels of Consistency

Cresco Labs Inc. (CRLBF Stock Report) is similarly down from its high numbers of 2020. But, it has rebounded a lot since that time. In its most recent first quarter, the company posted revenue growth quarter over quarter north of 60%. This is quite a solid number and shows just how committed the company is to growing. Recently, it completed the acquisition of Origin House, which has helped to give it unprecedented access to the U.S. retail cannabis market. In Illinois and Pennsylvania, the company continues to show quite a lot of promise.

And, it has worked tirelessly to enter into the Californian cannabis industry in big numbers via the aforementioned acquisition. Cresco Labs has worked to move into several smaller statewide markets with the hopes of becoming the largest cannabis operator there. Because of this, it seems as though the long term for Cresco is where the majority of the potential lies. For that reason, the company remains a key marijuana stock to watch moving into the near future.