The Best Marijuana Stock in 2020 Could Double Your Money

There are two gigantic investing mistakes many investors are making in 2020.

The first mistake is not buying enough stocks on the dip. The second: not buying enough marijuana stocks on the dip.

The cannabis sector was worth around $10 billion in 2019. But the National Institute for Cannabis Investors has said it could explode to $300 billion if cannabis were fully legalized in the United States.

Our best marijuana stock today could pop 137% on the industry's rise in the next year alone.

Investors taking the "wait and see" approach to cannabis miss out. It's no secret that pot stocks have underperformed the market. The ETFMG Alternative Harvest ETF (NYSE Arca: MJ) has actually lost 25% since the start of the year. But today, we're going to show you why that's about to change.

Some will look at this early turbulence in cannabis and say the industry is "overblown." Frankly, that's ridiculous. That's like saying it will never be summer because it's cold out.

Right now, stocks have hit a rough patch. And cannabis stocks are dirt cheap. But a drop in price is not a signal of lost potential.

In fact, despite all the uncertainty or downright pessimism of the current hour, 2020 is bringing more catalysts than the cannabis industry has seen in its lifetime.

That's why we're sharing our top marijuana stock with you today.

It's hooked into the four catalysts we're highlighting that could send pot stocks soaring in 2020…

Marijuana Stocks 2020: 4 Catalysts

1. State Revenue

One of the more obvious arguments for legalizing marijuana in the past has been the potential tax revenue for states. But would anybody have thought the pandemic would boost that argument?

The state of Oklahoma hadn't been pushing for legal marijuana this year. But since it projected $220 million going toward fighting the coronavirus, some lawmakers have changed their tune.

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Oklahoma Rep. Scott Fetgatter is now suggesting legalizing marijuana for adults 21 and over. This comes in the wake of states like Illinois and Colorado announcing higher-than-expected revenue from recreational pot. Colorado had $1.75 billion total sales on recreational marijuana last year. Oregon sold $11 million in its first week after legalizing, and Illinois sold $19.7 million worth in the first 12 days.

Illinois expects marijuana revenue to increase from $34 million to $375 million by 2024 — 1,002% growth.

Numbers like that are pushing other states to vote on the matter as well.

And nine are doing just that this year…

2. States Voting

There are nine states voting to legalize marijuana this year. Arizona and New Jersey are both likely to legalize recreational marijuana, while more conservative states like Mississippi and Idaho will be voting to legalize medical marijuana for the first time.

Here are the states set to vote in some form or other:

• Arizona
• Arkansas
• Idaho
• Mississippi
• Missouri
• Nebraska
• New Jersey
• North Dakota
• South Dakota

Of course, sentiment is also shifting in states that might have been more on the fence before. In this way, the coronavirus pandemic has also been a catalyst…

3. Essential in Coronavirus

The coronavirus pandemic has created a new challenge for all businesses. But dispensaries are still open despite statewide lockdowns. This means cannabis companies will be able to hold on during the pandemic while retail and travel businesses will be lucky to survive.

We've talked about how this is good for Pharmacann, Truelieve Cannabis Corp. (OTCMKTS: TCNNF), and Cresco Labs Inc. (OTCMKTS: CRLBF). But it's also good for companies like Innovative Industrial Properties Inc. (NYSE: IIPR), a cannabis REIT the collects rent from all of those companies.

But arguably the biggest, most lasting change is that of the culture around marijuana…

4. Cannabis Endorsements

Sure, Martha Stewart, Seth Rogen, and a host of other celebrities have endorsed Canopy Growth Corp. (NYSE: CGC). But cannabis has been dripping its way into the mainstream consciousness through music and movies for years.

When you see professional athletes supporting hemp products, you know the spigot is on. Many have come out in support of CBD, namely NFL tight end Rob Gronkowski and pro golfer Bubba Watson. They've voiced the health and recovery benefits of the hemp derivative.

An even greater catalyst could be that legendary quarterback Joe Montana has begun investing in cannabis startups.

As you can see, the cannabis industry in 2020 is poised to thrive on many levels. And that's setting up our top marijuana stock to buy for 137% return.

The Best Cannabis Stock to Buy Right Now

Mike Stenger

About the Author

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Mike Stenger, Associate Editor for Money Morning at Money Map Press, graduated from the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.

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