This Marijuana Stock Skyrocketed Last Week, While 3 Others Plunged
When it comes to the market's top-performing stocks, you'd have a hard time topping marijuana stocks over the trailing year. A majority of pot stocks over the past 12 months have at least doubled in value, with some even tripling or quadrupling. For added context, the stock market tends to appreciate in value by about 7% annually, inclusive of dividend reinvestment. That's how strong marijuana stocks have been.
And we certainly don't need to dig deep to see why they've been such popular investments. To begin with, forecasts call for huge legal sales growth over the next five to 10 years. Cannabis research firm ArcView is predicting that legal weed sales in North America could grow by 26% annually through 2021, leading to a nearly $22 billion market. Investors believe that this legal sales growth should translate into strong top- and bottom-line growth for publicly traded pot stocks.
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Source: Fool.com
