3 Cannabis Stocks That Are Well Positioned To Benefit From Industry Growth

More and more countries are likely to follow the trend of legalizing medical marijuana. The truth is that there is plenty of competition among growers, and that a few cannabis companies are showing a profit. Consequently, this unprecedented year was tough for these stocks as the Alternative Harvest ETF (NYSEMKT: MJ) which tracks the whole industry is down more than 23% year to date.

But there are plenty of growth opportunities ahead. And here are three stocks that can make good use of this trend.

Innovative Industrial Properties – All The Positives Of In Cannabis

There is one marijuana stock that’s up and it is Innovative Industrial Properties Inc (NYSE: IIPR). It is a fast-growing, real estate investment trust that was founded in 2016. Moreover, it is the first company on the New York Stock Exchange to provide real estate capital to the medical-use cannabis industry. When it comes to cannabis-related stock, it is a rare find with safe and high yields. It simply does a good job at capturing the benefits of investing in the industry. Most importantly, it has solid fundamentals that resulted in both revenue and profit growth.

In the second quarter, revenue increased 183% year-over-year as it amounted to $24.3 million. As for the net income of $13 million, it is even more impressive considering it is 263% more than during the same period in 2019. Now, it has 14 consecutive quarters of increased revenue and 12 consecutive quarters of increased earnings to fall back on. Since April, the company purchased eight properties which amount to 775,000 square feet of space. On September 1, it announced it closed on the acquisition of a property in Michigan. Its portfolio now has 62 properties in 16 states comprising over 4.7 million square feet — 99% is its …

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