2 Leading Cannabis Stocks To Buy in 2021 and Beyond

The cannabis industry is one of the fastest-growing markets around. According to some estimates, the sector will expand at a compound annual growth rate of 26.7% through 2028. No doubt many pot companies will…

profit from this trend.

And it provides an exciting opportunity for investors: Picking the right cannabis stocks right now might turn out to be an excellent move. With that as a backdrop, here are two leading pot companies that are worth adding to your portfolio: Trulieve Cannabis (OTC:TCNNF) and Innovative Industrial Properties (NYSE:IIPR).

1. Trulieve Cannabis

In the third quarter, Trulieve Cannabis reported strong financial results, recording its 15th consecutive profitable quarter. That may not seem that impressive, but let’s put things in context: Most pot growers on the market have struggled to show green on the bottom line for even a handful of reporting periods. Trulieve Cannabis’ accomplishment is commendable by comparison to its peers. The company’s revenue during the quarter soared by 64% to $224.1 million.

Meanwhile, its net income came in at $18.6 million, 7% higher than the year-ago period. One secret behind Trulieve Cannabis’ success is its strong presence in the state of Florida. It boasts 105 retail dispensaries in the sunshine state and a whopping 50% of the market share as of Oct. 1, 2021. But Trulieve Cannabis has expanded beyond Florida.

In October, it closed its acquisition of Harvest Health and Recreation — an Arizona-based pot grower — in an all-stock transaction valued at roughly $2.1 billion.

The deal helped Trulieve Cannabis establish deeper footprints in the U.S. pot market, particularly in the West and Northeast regions where Harvest’s business focuses. Trulieve Cannabis’ total addressable market will reach $19.3 billion by 2025, thanks to this acquisition. Of course, there are plenty of other companies that are fighting for market share. However, with a leading 155 retail dispensaries, Trulieve Cannabis is one of the top dogs in the fast-growing U.S. marijuana industry.

Trulieve Cannabis has proven that it can routinely deliver strong financial results, despite the legal barriers pot companies face in the U.S. (the substance remains illegal at the federal level, and it cannot be transported across state lines). A friendlier legal environment would work wonders for the company, but even without that, Trulieve Cannabis looks in an excellent position to continue beating the market.

2. Innovative Industrial Properties

While cannabis legalization at the U.S. level would be a welcome sight for Trulieve Cannabis, some argue that the same does not hold for Innovative Industrial Properties. This medical cannabis-focused real estate investment trust has gained tremendous success by taking advantage of the fact that cannabis companies in the U.S. have a hard time accessing traditional banking services. Here is how Innovative Industrial Properties’ business works…

 

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