3 Safe Cannabis Stocks to Hold During the COVID-19 Pandemic
Cannabis investors often take on a great deal of risk by investing in the industry, and they've incurred some significant losses over the past year. The Horizons Marijuana Life Sciences ETF, which holds some of the top pot stocks in North America, is down 70% in the past 12 months. Those types of returns can scare away prospective investors from considering the industry.
But there are safer ways to get exposure to the potential growth in the cannabis sector where investors don't have to take on significant risks. Below are three relatively safe stocks that are performing well in 2020 and investors should consider buying today.
Scotts Miracle-Gro (NYSE: SMG) is known for its lawn and garden products, but what makes the stock an exciting buy is its exposure to the cannabis industry -- without actually being a pot producer itself. Its Hawthorne Gardening business distributes hydroponic products that allow plants to grow without soil. This segment has been driving a lot of the company's growth. Scotts released its second-quarter results on May 6, and Hawthorne's sales were up 60% year over year. Its U.S. consumer business, which focuses on the company's traditional lawn and gardening products, was up a more modest 11%.
Source Fool.com
