Marijuana stocks no longer seem to make the big headlines they used to. But that doesn’t mean the green wave has stopped.
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In fact, it’s easier than ever to access marijuana – legally. As of 2022, 21 states, the District of Columbia and Guam will offer legal recreational cannabis to their residents. That means, according to the Pew Research Center, that 43% of American adults now live in an area where marijuana use has been legalized. And according to Cannabis Business Times, four more states are likely to legalize it this year, with another nine marked as “maybe” or “to watch” by the publication’s editors.
But maybe weed isn’t your thing. Still, there may be some green in it for you. If you don’t feel like taking a hit, why not let cannabis blow your portfolio?
Here’s a look at three marijuana stocks poised to benefit from the growing trend toward legalization. They are listed on stock exchanges in Canada but trade over-the-counter in the US – and analysts also see big benefits in this trio.
Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis entered the cannabis industry by winning Florida’s first medical marijuana filing in 2015. Today, it has 100 stores in the Sunshine State and approximately 180 operated and affiliated pharmacies nationwide.
The company claims to have leading market positions not only in Florida, but also in Arizona and Pennsylvania.
Truliev’s finances have exploded, and not even the COVID-19 pandemic could stop the momentum. In 2020, revenue increased 106% from 2019 levels to $521.5 million.
In 2021, sales increased another 80% to $938.4 million.
According to its latest earnings report, Trulieve earned $300.8 million in revenue in the third quarter of 2022, up 34% year-over-year.
However, the stock is down nearly 70% in the last 12 months.
Canaccord analyst Derek Dley sees a recovery on the horizon. The analyst has a buy rating for Trulieve and a C$50 price target for its Canadian-listed shares, implying a potential upside of 488%.
Green Thumb Industries (GTBIF)
Green Thumb is a vertically integrated cannabis company headquartered in Chicago. It has 18 growing and manufacturing facilities, six consumer products brands, 77 open retail locations and operations in 15 U.S. markets.
Like Trulieve, Green Thumb stock hasn’t been a hot commodity: Shares are down more than 50% in the past year.
However, business is still on the rise.
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In 2022, the company generated $1.0 billion in revenue, up 13.9% year-over-year.
Stifel analyst Andrew Partheniou has a buy rating on Green Thumb and a C$30 price target on his Canadian-listed shares. Given that these shares are currently trading at C$11.20, the price target represents a potential upside of 168%.
Curaleaf Holdings (CURLF)
With a market capitalization of approximately CAD 3.1 billion, Curaleaf is a larger company than both Trulieve and Green Thumb.
It has a huge presence in the US cannabis industry, with 29 cultivation locations, approximately 4.4 million square feet of cultivation capacity, 148 retail locations and approximately 2,200 wholesale partner accounts.
In the third quarter of 2022, revenue grew 7% year over year to $340 million.
Still, this heavyweight isn’t immune to the industry-wide sell-off, as shares are down about 42% over the past six months.
Alliance Global Partners analyst Aaron Gray has a “buy” rating on Curaleaf and a C$12 price target on its Canadian-listed shares – about 136% higher than where they currently sit.
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This article provides information only and should not be taken as advice. It comes without any kind of warranty.