Aside from electric cars, cannabis stocks are one of the more popular industries over the last couple of years. While many cannabis stocks fell back to earth this year, Innovative Industrial Properties (NYSE:IIPR) rallied more than 100% in the past year. But is it still a Buy? Read more to find out.Innovative Industrial Properties (IIPR) is a Wall Street darling with seemingly endless potential. This real estate investment trust (REIT) acquires and manages large properties used for growing medical cannabis. IIPR leases these sites to state-licensed cannabis growers.
Based in San Diego, California, IIPR has rallied more than 100% in the past year alone. However, IIPR's success is somewhat attributable to the lack of competition. Fast forward half a decade into the future when marijuana use is socially acceptable throughout the vast majority of the United States, and IIPR might not have nearly as much market share as it does now.
Add in the fact that cannabis laws are changing with each passing year, and there is also the potential for medical and recreational users across the land to grow their own greenery. In short, the future is uncertain for IIPR. Below, I reveal whether the stock is a Buy, Sell or Hold.