When it comes to outperforming industries, few, if any, can hold a candle to the legal-weed industry. Over the trailing 12 months, the average marijuana stock with a market cap in excess of $200 million is up more than 300%— and it’s not hard to understand why if we look at the two catalysts behind pot stocks.
To begin with, there’s been a rapid and well-defined shift in how the American public views marijuana. In 1995, the year before California became the first state to legalize medical cannabis for compassionate use, a mere 25% of the public favored the idea of legalizing weed nationally, per Gallup. Last year, according to Gallup, favorability toward legalization was up to 60%, an all-time high.What’s more, a Quinnipiac University poll from April showed that favorability toward legalizing medical cannabis was up to an overwhelming 94%.