The marijuana industry has seen a steady growth in recent years, particularly in the US where several states have approved laws legalising the use of medical and recreational cannabis.

Towards the end of December 2017, cannabis stocks rose dramatically as California and Canada prepare to open a legal cannabis market. The industry hit a snag early this year though, following Attorney General Jeff Sessions’ announcement that he would end the Obama-era policy on legal marijuana industry. However, cannabis companies have assured shareholders and investors that it would be business as usual.

The cannabis industry is projected to hit US$22 billion (AU$27.63 billion) by 2021, growing at an annual rate of 26 percent, according to leading cannabis research firm ArcView. Assuming full legalisation at the federal level, the worth of the marijuana sector could even grow to US$50 billion (AU$62.79 billion) by 2026, according to investment firm Cowen & Co., The Motley Fool reports.

That begs the question if marijuana stocks are good investments. In any case, here are three cannabis stocks to consider.

PotNetwork Holding, Inc.

PotNetwork Holding, Inc. (OTCMKTS:POTN) is one of the leading players in the hemp-derived CBD market, the fastest growing segment of the legal cannabis and hemp industry. The company is dedicated to the research, development and distribution of high-quality hemp extracts, mainly cannabinoid (CBD). Its wholly owned subsidiary, Diamond CBD, offers a wide range of CBD oil and products. It has edibles, oil, vape liquids and pet food made with 100 percent THC-free CBD hemp extract and the finest organic natural ingredients.

In 2017, PotNetwork Holding experienced its best year so far with record-breaking achievements in different sides of the business. Figures showed that the company had surpassed its target of US$8.4 million (AU$10.55 million) revenues in 2017, as its revenues from January to November already amount to US$12.5 million (AU$15.7 million). That is a significant increase from the US$1.6 million (AU$2.01 million) revenues the company posted for the entire 2016. It has also exceeded its share target of US$0.25 (AU$0.31) per share, reaching a high of US$0.27 (AU$0.34) in the second week of January this year. SeeThruEquity has now revised the stock price target to US$0.40 (AU$0.50) per share.

Insys Therapeutics

Insys Therapeutics (NASDAQ:INSY) has been making waves in the cannabis-based pharmaceuticals, especially with its Syndros drug. Approved by the Food and Drug Administration (FDA), Syndros treats nausea and vomiting in cancer patients undergoing chemotherapy. It also treats anorexia in AIDS patients. Last month, Insys secured FDA’s approval for a fast-track designation for a new CBD oral solution developed to treat Prader-Willi syndrome.

Insys is projected to generate US$200 million (AU$251 million) revenues a year in the next three to five years. It reached a high of US$13.38 (AU$16.80) per share in December. On Friday, the stocks were traded for US$8.84 (AU$11.10) per share.

Canopy Growth Corp.

The Motley Fool recommends looking north to purchase some cannabis stocks. Canopy Growth (NASDAQOTH:TWMJF) based in Ontario, Canada, is the largest publicly traded marijuana company in the world with a market value of around US$7.6 billion (AU$9.74 billion). Canada is legalising recreational weed in the country by July 1; Canopy is ensuring it takes a huge spot in the industry.

It is expanding its facility that will add 2.4 million square feet grow capacity, bringing it to 4 million square feet. This will put Canopy in the best position to benefit from the US$5 billion (AU$6.28 billion) annual sales the legal recreational weed would bring, via Ottawa Citizen. Canopy’s stock price reached a high of $44 (AU$55.25) from Jan. 2 to 9 before it closed at US$32.35 (AU$40.62) on Friday, Jan. 12.

This article was sent for consideration.