3 Best Cannabis Stocks to Buy Right Now

Take the guesswork out of investing in a cannabis company by sinking your cash into stocks that are already ahead of the pack…

Trulieve Cannabis (OTC:TCNNF)Verano Holdings (OTC:VRNO.F), and Green Thumb Industries (OTC:GTBIF) are multistate operators that are already profitable, and just becoming more so. All three had quarterly sales of $120 million or more and quarterly earnings of $45.5 million or more.

The first three months of the year haven’t been kind to cannabis stocks, and shares of Trulieve and Verano are down so far this year. That might discourage some investors, but if you’re looking for likely growth with companies capable of outlasting others, these three are good bets.

1. Trulieve is making a major move

Trulieve was already the biggest cannabis company in Florida, and with one quick move last week, it became the largest cannabis company in the United States by revenue. The megadeal was its $2.1 billion purchase of Phoenix-based Harvest Health and Recreation (CNSX:HARV(OTC:HRVSF), which leads in Arizona with 15 dispensaries.

Trulieve has been profitable for 13 consecutive quarters. In the first quarter, it reported record revenue of $193.8 million, up 15% over the fourth quarter of 2020 and up 102% year over year. It had net income of $30.1 million, adjusted EBITDA of $90.8 million, and an awesome gross margin of 70%.

The deal with Harvest Health makes Trulieve a national player. Of the company’s 83 dispensaries, all but five are in Florida. The addition of Harvest Health gives Trulieve an estimated annual revenue of $1.2 billion and exposure to a budding marijuana market; recreational sales began in Arizona in February. In the first quarter, Harvest reported $88.8 million in revenue with adjusted EBITDA of $26.9 million. The combined company will have 126 dispensaries in 11 states and will be the market leader in Arizona and Florida.

2. Verano Holdings has seen explosive growth

Verano Holdings only went public on the Canadian Securities Exchange (CSE) in February, but the company is already becoming a big multistate operator. It has licenses in 14 states and active operations in 11, with 77 retail outlets and 85 total planned by the end of the year.

The company is coming off a strong first quarter in which it reported revenue of $143 million, up 117% year over year, with a gross profit margin of 62% and net income of $126 million. The company is in a good cash position with $112 million, nearly four times the amount of the company’s debt of $34 million.

While Trulieve is clearly the dominant cannabis company in Florida, Chicago-based Verano also has a strong footprint there, with 32 medical-use dispensaries and eight more planned by the end of 2021. It’s also making a big push in Pennsylvania, with 10 medical-use dispensaries and eight more planned, and in Illinois, where it has five dispensaries that are used for medical and adult-use marijuana and an additional five adult-use dispensaries. The company also has…

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