10 Pot Stocks Expected to Grow Sales by 60% (or More) in 2021

For more than 15 months, cannabis stocks have been mired in a relatively precipitous downtrend. Growing pains are common with all next-big-thing investments, and the marijuana industry is no different. Regulatory-based supply problems in Canada, high tax rates on legal weed in select U.S. states, and financing issues throughout North America have all created a wall of worry for the cannabis industry…

But just because the marijuana industry is maturing doesn’t mean growth will come to a standstill. There are, in fact, 10 pure-play pot stocks expected to deliver consensus sales growth (as defined by Wall Street) of at least 60% in 2021, if not considerably higher.

1. Cronos Group: 124% sales growth

Don’t be too fooled by Cronos Group‘s (NASDAQ:CRON) big sales jump, considering that it’s starting from a fairly small revenue base. Cronos has struggled to deliver dried cannabis output that’s commensurate with a company of its size but should begin to benefit from an uptick in derivative sales during the second half of 2020 and throughout 2021. As a refresher, tobacco giant Altria Group is an equity investor with a 45% stake in Cronos, and their partnership should lead to a focus on growing vape sales.

2. Planet 13 Holdings: 116% sales growth

Planet 13 Holdings (OTC:PLNH.F), a vertically integrated dispensary operator headquartered in Nevada, is the only other pot stock on course to more than double its sales next year. This is partially because tourism is way down in Las Vegas, which is where Planet 13’s SuperStore is located. Sales at the SuperStore are expected to retrace 21% in 2020 before rebounding significantly in 2021. Additionally, Planet 13 will be opening its second huge cannabis dispensary in Santa Ana, California. This’ll be another key sales-growth driver.

3. MediPharm Labs: 93% sales growth

Strong sales growth should be expected from Canada’s MediPharm Labs (OTC:MEDI.F), which is a processor of cannabis and hemp biomass. Between Health Canada delaying the launch of derivatives and the coronavirus pandemic, processors like MediPharm have faced a number of adversities in recent months. However, the continued growth of alternative-consumption options, such as edibles and infused beverages, as well as Ontario finally opening more dispensaries, should give MediPharm Labs a healthy boost in demand for its services.

4. Cresco Labs: 78% sales growth

Following its acquisition of Origin House, U.S. multistate operator (MSO) Cresco Labs (OTC:CRLB.F) is forecast to deliver 78% sales growth next year. Some of this growth can be attributed to opening new dispensaries in Illinois, which waved the green flag on adult-use weed sales on Jan. 1, 2020. But a significant uptick in sales is likely the result of Cresco gaining access to almost 600 California dispensaries, courtesy of Origin House’s cannabis-distribution license in the Golden State.

5. Curaleaf Holdings: 78% sales growth

Absolutely no surprise hereCuraleaf Holdings (OTC:CURL.F) is the largest U.S. MSO by market cap, as well as by operational dispensaries (57). It recently completed the acquisition of the Select brand of cannabis products, and is expected to close on its buyout of privately held MSO Grassroots later this year. Curaleaf should enter 2021 with more than six dozen open dispensaries, a bounty of processing and cultivation sites in almost two dozen states, and plenty of organic growth potential to boot.

6. HEXO: 68% sales growth

Despite closing and then selling the Niagara facility that was acquired in the 2019 Newstrike Brands acquisition, as well as reducing its cultivation space at its flagship Gatineau campus, HEXO (NYSE:HEXO) is expected to chime in with 68% sales growth next year. There’s a good chance that most of this growth is going to come from the combination of more cannabis retail outlets opening in Canada and consumers upping their purchases of higher-priced derivatives. Just be careful not to mistake HEXO’s sales growth for strength, as this company could be facing delisting from the New York Stock Exchange.

7. Innovative Industrial Properties: 67% sales growth

Marijuana-focused real estate investment trust (REIT) Innovative Industrial Properties (NYSE:IIPR) is also growing at a rapid pace. As of this past week, it owned 59 cultivation or processing sites in 16 states that were leased out for a weighted-average length of 16.1 years. For context, Innovative Industrial Properties owned only…

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