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In case you haven't noticed, marijuana stocks have the full and undivided attention of Wall Street and investors. A projected four- to sixfold increase in worldwide cannabis sales over the next decade, coupled with triple- or quadruple-digit percentage gains in popular pot stocks over the past couple of years, is generally a good way to keep investors intrigued.
However, there's perhaps no group of investors more excited about the rise of cannabis than millennials.
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Millennials really love pot stocks
In Gallup's October 2018 survey on marijuana, the national pollster found that 66% of Americans favored the idea of broad-based legalization. But when it came to the age group typically associated with millennials, support stood at a whopping 78%. Millennials have long had a more favorable view of marijuana, relative to their parents and grandparents, and they've also welcomed high-margin derivative consumption options like oils, edibles, infused beverages, vapes, concentrates, and topicals, with open arms.
Suffice it to say, millennials are the future of the cannabis industry, and their buying habits will go a long way toward dictating what products the North American weed industry will feature.
In addition to partially dictating the direction of the North American pot industry, their investments may also be signaling what marijuana stocks will stand out over the long run.
According to data from Robinhood, an investing app of 6 million users whose average age is 32, four of the top 14 holdings of its users are pot stocks. Courtesy of a top-20 holdings list provided by Robinhood to Investor's Business Daily, these cannabis stocks are:
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Aurora Cannabis (NYSE: ACB): The No. 1 most-held stock on the app.
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Cronos Group (NASDAQ: CRON): The No. 6 most-held stock.
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Canopy Growth (NYSE: CGC): The No. 11 most-held stock.
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HEXO (NYSEMKT: HEXO): The No. 14 most-held stock.
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Why Aurora, Cronos, Canopy, and HEXO are favorites among millennial investors
Why these four names? Well, for starters, they're really visible. All four of these marijuana stocks uplisted from the over-the-counter (OTC) exchange to a major U.S. exchange between late February and late December 2018. Having uplisted, they're now trading far more shares daily than they were on the OTC exchange, and they've received far more coverage from Wall Street, which frequently keeps these companies in the news.
These four pot stocks are also some of Canada's largest projected growers by peak annual production. Aurora Cannabis expects to lead all Canadian growers with at least 662,000 kilos of yearly output when operating fully, followed somewhat closely by Canopy Growth at more than 500,000 kilos a year. A bit further back, HEXO looks to produce at least 150,000 kilos annually following its Newstrike Brands acquisition, while Cronos Group is pegged for 117,500 kilos per year. Respectively, and not including joint venture and royalty company output, this ranks Aurora, Canopy, HEXO, and Cronos as Canada's No. 1, No. 2, No. 6, and No. 9 growers by peak output.