Senate Majority Leader Chuck Schumer and some of his Democratic colleagues unveiled their proposed cannabis reform legislation on Wednesday. The draft bill would decriminalize marijuana at the federal level and leave it up to individual states to enforce their own cannabis laws…
What should investors do differently with this legislation in the works? Nothing, in my view. There’s no guarantee that the bill will receive enough support in the Senate to avoid a filibuster.
However, there are several companies operating in the cannabis industry that have strong growth prospects regardless of what happens in Washington, D.C. Here are my picks for the three best marijuana stocks to buy in July.
Cresco Labs (OTC:CRLBF) ranks as the top U.S. wholesaler of branded cannabis products. It’s also one of the biggest multistate cannabis operators, with operations in 10 states and 33 retail cannabis dispensaries.
The company’s revenue skyrocketed nearly 169% year over year in the first quarter to $178.4 million. Unlike several of the biggest Canadian cannabis operators, Cresco is already generating positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).
Cresco should be on target for annualized revenue of $1 billion by the end of this year. The company’s acquisitions of Florida medical cannabis operator Bluma Wellness and Massachusetts-based Cultivate should boost sales.
What really makes Cresco stand out, though, is its valuation. Compared to most pot stocks, Cresco is dirt cheap with shares trading at only 4.3 times sales.
Innovative Industrial Properties
Innovative Industrial Properties (NYSE:IIPR) is one of the relatively few cannabis stocks that could appeal even to risk-averse investors. The company is organized as a real estate investment trust (REIT) and serves the U.S. medical cannabis industry.
In the first quarter of 2021, IIP’s revenue more than doubled year over year to $42.9 million. Its earnings jumped 122%. The company achieved this strong growth by buying additional properties and leasing them to medical cannabis operators.
All IIP has to do to keep its momentum going is to…
Continue reading at THE MOTLEY FOOL