Whether it's eating a gooey chocolate brownie or taking a few strokes of a freshly rolled joint, it's common knowledge that many people love to get screwed. However, many investors are not yet enlightened. Some are reluctant to add marijuana stock to their wallets because they fear that pot companies are involved in scams or are still considered illegal by the federal government.

Let 's not forget that this market has turned into a big money maker. Not only is this one of the fastest growing sectors in the United States, but it has also received considerable momentum after the mid-term elections of 2018, when more states have declared marijuana legal for recreational and medical purposes.

Marijuana sales also have the potential to significantly increase the government's cash flow and will be extremely useful in the medical fields. Nowadays, it is also easier for banks to provide services to legitimate marijuana companies. With this optimism, we have selected the most important, stable and legal cannabis-related companies that will bring you high returns.

Focus on legalization

When the Americans went to the polls in the last mid-term election, weed was a big winner. Missouri and Utah have legalized cannabis for medical purposes, while Michigan has voted in favor of recreational use. Nationally, a total of 33 states have legalized marijuana for medical purposes and 10 states (plus Washington, DC) have legalized marijuana for recreational purposes.

In fact, the number of states legalizing marijuana has been increasing steadily since 2000. Prior to that year, only three states – California, Maine, and Oregon – had legalized medical cannabis. Today, much of the American population lives in states where some form of marijuana use is legal.

Tax revenue to improve

Sales from the legalization of marijuana could help significantly increase government tax revenues. In states like Colorado and Washington, the government has collected about $ 70 million in tax revenue from the sale of marijuana for recreational purposes in 2014, according to CNN and Time magazine.

The legal marijuana industry is growing rapidly and has grown 25% to $ 5.7 billion in 2015, making it one of the fastest industries in the US market, according to the ArcView Group. The market research firm also expects global spending on legal cannabis to rise by 230 percent to $ 32 billion by 2020, up from $ 9.5 billion in 2017.

This research predicts that most of this growth (more than $ 23 billion) will come from the United States, but this implies that more states will vote in favor of legalization and that commercial interests will be spurred on in more countries. # 39; industries.

4 marijuana stocks to consider

Faced with these upward trends, the movement to legalize marijuana has definitely accelerated. Below you will find four titles related to cannabis that may benefit from legalization.

With its subsidiaries,GW Pharmaceuticals (GWPH – Free report) focuses on the discovery, development and commercialization of cannabis prescription drugs. In particular, his cannabidiol drug, Epidiolex, has been successful in trials and studies dealing with the treatment of seizures associated with Dravet syndrome, a rare form of epilepsy that occurs in infants. Epidiolex has been approved by the FDA in 2018 and is the first drug to be approved "that contains a purified drug substance derived from marijuana."

Innovative Industrial Properties (IIPR Report – Free) is a publicly traded real estate investment trust company with a market capitalization of more than $ 453 million at the end of 2016. Although few other marijuana-related companies have entered the market, the IIPR is quite different: it focuses on the growth operation, especially property management, and is considering buying real estate and to rent them to marijuana growers for medical purposes. The IIPR has jumped more than 150% over the last year.

You can also watch drinks giant Constellation Brands (STZ – Free report) , third largest beer producer in the United States and best known for its beer brands such as Corona and Modelo. Recently, Constellation launched the cannabis market by investing $ 4 billion in Canopy Growth (CGC – Free Report). Together, the two leaders plan to introduce a variety of cannabis-infused drinks to Canada, hoping to enter the US market when regulations permit.

And then there is Cronos Group (CRON – Free report) , which invests in marijuana companies based in Canada, active in the Canadian medical marijuana industry The company has three key strengths: Peace Naturals; Original BC; and Whistler Medical Marijuana Company. The three assets produce and sell medical cannabis, while WMMC and Peace Naturals also focus on cannabis oils. The Altria tobacco giant (MO – Free Report) announced in December that it would buy a 45% stake in Cronos, a deal that will give the company a significant partner and cash to grow its business.

Bottom line

There is no doubt about the profit potential of the weed. The industry is evolving at a rapid pace, with new developments in growing technology and medical treatments appearing quickly and consistently.

Although it is still not legal at the federal level, the idea of ​​legalizing marijuana has evolved significantly in the United States in recent decades. And now that Canada has legalized marijuana for recreational purposes, the incentive to do so in the United States is growing stronger.

This desire for legalization certainly has an impact on the entire marijuana industry. Investors used to choose among the thinnest options, but now the sector offers growth, legitimacy and big profit potential.

2019 Marijuana Investor Summit in Zacks: In addition to the companies you have described above, we invite you to learn more about investing in pot stocks. On Tuesday, February 26, our team of experts will unveil what we believe to be the best way to make money with legal marijuana. Sign up now for free >>