'Pot stocks' are booming as marijuana is legalized in several states

Arizona is one of five states that passed initiatives legalizing recreational marijuana, and that sent some so-called "pot stocks"  soaring.

As marijuana's legality is becoming more widespread, it is a growing industry, and some will jump in financially. However, there are risks — as with any stock purchase.

Business is booming at the Mint Dispensary with medical cannabis, and it will likely explode when it can sell recreational marijuana as early as March 2021.

Wall Street is taking notice in the stock sales, but should you invest in this growing industry? Tread carefully, advises Morningstar Research Analyst, Kristoffer Inton.

"So we're so early stage, that there's so much risk still involved. So the runway for growth is huge," he explained.

Licensed 4 years ago, the Mint Dispensary has flourished, expecting to bring in $27 million in gross sales this year, says its owner, who is not interested in going public now.

While there is lots of optimism for the industry right now, Inton says it's important to first watch the industry develop.

Learn more about Arizona's legalization of marijuana here.