Our Top Pot Stock to Buy Could Easily Double Your Money

It’s been an incredible run for pot stocks over the last three years.

A $10,000 investment in Aurora Cannabis Inc. (NYSE: ACB) in early 2016 would have handed you more than $200,000. And $10,000 invested in Cronos Group Inc. (NASDAQ: CRON) during that same time would have netted you over $760,000.

That is the power of the cannabis industry and the legalization movement that continues to bolt forward like a freight train across the United States….

Some politicians are calling for complete legalization of recreational cannabis before the 2020 election.

We think it’s going to take just a bit more time than that…

But realistically, it’s not a matter of “if,” but “when” cannabis is completely recreationally legal in the United States of America.

Which marijuana stocks are going to break out next? Great question. We’re glad you asked – because we found just the one…

You see, we use the Money Morning Stock VQScore™, a proprietary stock valuation system, to tell us which stocks are ready for liftoff and which ones will falter in the future.

This week, the VQScore flashed a “Strong Buy” signal on one of the best “backdoor” legalized cannabis plays in the market. This is the best pot stock to buy today…

Great Pot Stocks to Buy Aren’t Just Growers

Aurora Cannabis Inc. (NYSE: ACB), Cronos Group Inc. (NASDAQ: CRON), and Canopy Growth Corp. (NYSE: CGC) have been the darlings of the cannabis sector.

Massive gains over the last three years have spurred the launch of additional cannabis producer IPOs and enormous gains for members of the National Institute for Cannabis Investors.

But it’s more than just green in the fields. Real estate investment trusts, vaping technology stocks, and companies that may soon provide banking services to the industry are just a few different ways to play the emerging sector.

However, one of our favorite stocks to buy is an unusual company that recognized the impact cannabis could have on its industry… and pounced on the opportunity to buy into the once-in-a-generation profit play.

If You Can’t Beat Them, Buy Them

The company VQScore identified for us is spirits maker Constellation Brands Inc. (NYSE: STZ). Based in Victor, N.Y., Constellation Brands is best known for manufacturing beers like Modelo and Corona, spirits like Svedka Vodka and High Ten Whiskey, and wines like Black Box.

The thought of wide-scale, legalized cannabis has brewers and cigarette makers like Altria Group Inc. (NYSE: MO) eyeing their risk management policies with recreational and medicinal cannabis coming online around the country.

Rather than attempting to beat cannabis with liquor, Constellation elected to invest $4 billion into Canopy Growth last summer.

That investment – its third in Canopy – gave Constellation a 37% ownership stake in one of the fastest-growing cannabis producers in North America.

Now, Constellation and Canopy plan to create cannabis-infused drinks together as soon as the drug is legalized at the federal level.

You see, it doesn’t have to be liquor versus cannabis. It can be both, in harmony, together. Constellation is laser focused on making the best products possible and letting its customers choose how they want to consume responsibly.

Cannabis Drinks Set to Surge

The cannabis beverage sector will likely be one of the fastest-growing segments of the beverage and food industries. According to Grand View Research, the nonalcoholic beverage industry will hit $1.6 trillion by 2025.

Meanwhile, the edibles market – which includes cannabis-infused beverages and foods – will likely hit $4.1 billion in Canada and the United States by 2022.

While that is just a drop in the bucket for the total nonalcoholic market, it’s an incredible sum considering the industry barely existed a few years ago.

Grand View Research also expects the global legal marijuana market to grow from $7 billion in 2016 to $146 billion by 2025.

Of course, the heart of Constellation’s upside in cannabis is found in its ownership in Canopy Growth. And it has the support of Wall Street… Roughly 87% of shares are owned by institutions, signaling that big-money investors are along for the ride.

But the most critical sign that this stock is poised to surge… it has one of our top VQScores: 4.75. As we noted, a score over 4 puts Constellations Brands square in our Buy Zone.

Constellation Brands is an intriguing backdoor play into the booming cannabis industry. With its diverse array of popular spirits, beers, and wines, it has now added cannabis (and future cannabis-infused) drinks to its portfolio.

Investors would be smart to take advantage of this buying opportunity.

The stock is currently trading for $200 per share and could easily double to $400 once cannabis is federally legal in the United States.

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Source: Money Morning