3 Pot Stocks to Avoid Like the Plague in May

By Newsfeedback@Fool Com (Sean Williams)5 days ago

Though most investors are laser-focused on tech stocks, it's actually cannabis that could be one of the greatest growth trends of the 2020s.

According to New Frontier Data, the U.S. pot industry is expected to average an annual growth rate of 21% between 2019 and 2025, ultimately hitting more than $41 billion in sales by mid-decade. Meanwhile, BDSA anticipates Canadian pot sales will more than double from $2.6 billion to $6.4 billion between 2020 and 2026. And let's not forget that Mexico is on the cusp of recreational legalization. All told, North America could become a $50 billion weed market by the midpoint of the decade. That's an investment opportunity not to be ignored.

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However, history also tells us that not every company in a next-big-thing industry will be a winner. As the marijuana industry has matured, the line between the haves and have-nots have become more discernable.

As move into May, the following three pot stocks stand out as those that should be avoided like the plague.

Image source: Getty Images.

Sundial Growers

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