Investing in rapidly growing industries is a no-brainer. And if technology stocks aren’t your thing, don’t worry: There’s a (more laid back) alternative. Over the next decade, Cowen Equity Research estimates that the market for cannabis products will grow at a compound annual rate of approximately 20%. That’s significantly faster growth than the entire tobacco market, not to mention the markets for other leisure products like liquor, beer, and wine.
Even amid the ongoing green gold rush, picking the right stocks in the marijuana industry is a bit of a challenge. Many companies aren’t profitable, and quite a few shareholders have lost their shirts when nonexistent earnings have given way to crumbling stock prices. Thankfully, as the industry has started to mature, investors now have a few good options to choose from, so let’s dive in and take a look at three of the leaders.