These 3 Cannabis Stocks Doubled Last Year. Are They Still Good Buys in 2021? – Motley Fool

One thing growth investors love about a fledgling industry, such as the cannabis industry, is that there are some fantastic returns to be made. Fast-growing companies with stellar sales numbers can captivate investors and generate lots of bullishness. However, sooner or later that excitement can fizzle out as investors start to focus on valuations (especially if there’s another market crash), sending share prices back down.

Three stocks that have been among the hottest cannabis buys of 2020 include GrowGeneration (NASDAQ:GRWG)Innovative Industrial Properties (NYSE:IIPR), and Green Thumb Industries (OTC:GTBIF). They all doubled (or more) in value in the past year even as the Horizons Marijuana Life Sciences ETF fell by about 10%. But given their impressive gains and the stock market near record highs, is it too late to invest in these companies? Let’s take a closer look and find out.

Cannabis greenhouse.

Image source: Getty Images.

1. GrowGeneration

Hydroponics and gardening company GrowGeneration is in the business of helping companies and individuals grow cannabis and other crops. For cannabis investors, it’s an attractive investment because you don’t need to worry about the quality of the company’s crops or whether they’ve been sitting too long. Since GrowGeneration provides the tools — whether it’s gardening equipment or just pipes, pumps, and other items to make a small hydroponics system — it’s a pick-and-shovel type of investment that possesses less risk than investing directly in licensed producers.

But in 2020, its strategy also generated