Cannabis stocks have been on the rise this year ranking among the best portfolios so far. This comes as Canada legalized the use of recreational marijuanawhile more states within the U.S are following the same path. Grow Tech Labs, a subsidiary of the Victory Square Technologies that was formed to accelerate the innovations within the Cannabis industry, recently collaborated with Launch Academy enhance efficiency.

Canadian investors who missed the rally in marijuana stocks over the past two years are wondering which cannabis companies are the best stocks to buy.

Let’s take a look at Canopy Growth (TSX:WEED)(NYSE:WEED) to see if the stock is priced right to add to your portfolio today.

Early consolidation

Canopy Growth quickly emerged as the leader in the Canadian cannabis space and is positioned to be a major player on the world stage.

The billion-dollar beverage giants have set their eyes on an entirely new industry, an industry that they fear will soon swallow them up if they don’t get ahead of it.

So, if you think you missed the cannabis boom…. Now may be the time for you to get in.

In a matter of days, Canada will legalize recreational marijuana—and it will be the staging ground for other parts of the world.

The highest estimates have global legal cannabis sales reaching nearly $146 billion by 2025. With recreational pot in Canada, the legal recreational sales bonanza is beginning.

Michael Serruya has never used cannabis. “But I am anxiously awaiting October 17,” says the managing director of Serruya Private Equity, referring to the date on which Canadians can legally consume the plant. “I think there are a lot of people like me out there.” It’s more than an idle observation: He’s deeply invested in the cannabis sector.

As we get closer to recreational legalization in Canada on October 17, cannabis companies are increasingly interested in an up-listing to a major U.S. stock exchange. A listing to a U.S. exchange would generally allow for more liquidity and could slightly boost the share price, as the stock is now accessible to a broader range of investors. Tilray Inc.

Licensed producers of marijuana in Canada have stored away a record amount of cannabis in the months leading up to legalization, yet analysts still anticipate a significant shortage after initial inventories are depleted – particularly of highly sought-after strains.

According to new data from Health Canada, the country’s 100-plus licensed producers accumulated 96,700 kilograms of cannabis oil and dried leaf through June. The Bank of Montreal estimates total demand for adult-use and medical cannabis in the first year of legalization will be 337,000 kilograms.

It is the last quarterly update that Health Canada will provide before legal marijuana sales kick off Oct. 17.

Cannabis is expected to be a multi-billion industry in Canada once recreational legalization occurs later this month. As with any sector, but especially one that is highly regulated such as marijuana, good governance will be the key to any company’s success and is a factor that should be taken seriously by all cannabis investors.  As Licensed Producers are set to compete with one another based on product and price, companies providing cannabis industry infrastructure, as well as tools to improve governance, could become the big winners in this space. Governments will be reliant on technology to effectively regulate this sector, one that has serious health implications for its citizens.

Don’t expect Intact Financial Corp., Canada’s largest property and casualty insurer, to insure the recreational-cannabis industry anytime soon.

“It’s not seen as the pot of gold that we should chase after,” Chief Financial Officer Louis Marcotte said Tuesday at the Bloomberg Canadian Fixed Income Conference in New York. “We’re cautious on every front with this legalization at this point in time.”

Recreational pot is set for legalization in Canada on Oct. 17. Medical marijuana seems to present less of a problem. Manulife Financial Corp. said in July it would launch the nation’s first such program with Loblaw Cos.’ Shoppers Drug Mart, allowing the drugstore chain’s pharmacists to support Manulife customers approved for medical-pot coverage.

Consolidation has been the name of the game in 2018 for Canadian cannabis stocks.

Lets take a look at HEXO (TSX:HEXO) and Cronos Group(TSX:CRON)(NASDAQ:CRON) to see if one might be an attractive buy for the larger players in the marijuana stocksector.

Canada is in a good position to corner the marijuana market as the industry up north continues to develop in the wake of recreational legalization. And that makes US businesses worried.

"The concern for some of the players is the market will be dominated by Canadian companies, shareholders and banks if we allow too much time to pass," cannabis exec Derek Peterson told Huffington Post. "If we don't see something happen in 2019, almost all of us will be takeout targets for Canadian players."