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2 Cannabis Stocks Under $5 to Buy Right Now

If you’re looking for stocks that have the potential to rise in value, then buying shares that are trading at low prices is one way to help improve those odds. With a low price, a stock can become more appealing to investors to own, as affordability is not an issue. It’s one of the reasons companies choose to use stock splits, so that share prices do not become too high that they impact liquidity. The two stocks listed below won’t have to worry about that anytime soon, as they trade below $5 and could be solid buys today.

Green Organic Dutchman Holdings (TSX:TGOD) has had a rough year, losing more than 40% of its value over the past 12 months. The cannabis stock has been a hard one to convince investors to buy given the competition in the industry and that TGOD has had limited sales thus far, while losses have continued to mount. However, with the launch of the edibles market being right around the corner, there may be no better time to buy shares of the company.

It was the licensing of the RIPPLE SC technology that initially put TGOD on the map, as it was thought to give the company a big advantage for the edibles market. And now that the market is within sight, it could be a good time for investors to get in with the stock trading at a low. However, it’s not just edibles that will give the company’s performance a boost. TGOD recently announced it would be launching a hemp division and will look to enter the U.S. market as well.

These developments could give the company’s sales a big boost and send the stock soaring.

Planet 13 Holdings (CNSX:PLTH) hasn’t had the same problems that TGOD has had. Its share price has been performing very well over the past year, rising 200% as the company’s strong performance in Nevada has gotten investors very excited about its future. While other cannabis companies have been looking to expand in every possible market as quickly as possible, Planet 13 has been more methodical in its approach.

Although it has made a big move to get into California recently, it is looking to replicate what has been a very strong model in Las Vegas thus far with its SuperStore location already generating significant sales growth.

With US$35 million in sales over the past four quarters, Planet 13 is quickly making a name for itself, and the company still has big plans for its operations. It wants its SuperStore in Las Vegas to become a tourist attraction, and the company is undergoing expansion to make it even bigger as it looks to host events there as well. Las Vegas is already a great tourist spot, and for those visitors that aren’t able to consume cannabis legally where they’re from, Planet 13’s store could prove to be an added incentive for them to visit.

The good news for investors is that the company isn’t that far from breaking even, and it generated cash from its operations in its most recent quarter. Overall, the company has produced impressive results amid such a high-growth period for the stock, making it a very attractive buy today.

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Fool contributor David Jagielski has no position in any of the stocks mentioned.

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