Tilray, Sundial Growers, Canopy Growth. You’ve likely heard a lot about these stocks so far this year if you follow the cannabis industry at all.
However, the best opportunities don’t always lie with the most well-known stocks. Oftentimes, you can make a lot more money over the long run by finding stocks that aren’t as widely followed. Here are three great under-the-radar cannabis stocks to buy right now…
Ayr Wellness (OTC:AYRW.F) ranks as one of the fastest-growing U.S. cannabis multistate operators (MSOs). Once its acquisition of New Jersey’s Garden State Dispensary closes, the company will have a presence in seven states.
In the first quarter of 2020, Ayr generated revenue of $58.4 million, up 74% year over year. It delivered adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $18.4 million. CEO Jonathan Sandelman said that strong Q1 performance “represents the early innings” of Ayr’s transformation.
That’s a good assessment, in my view. Ayr has tremendous growth prospects in its current markets. The Garden State Dispensary deal should finalize in July. There’s also the possibility that Florida could legalize recreational marijuana in the not-too-distant future. Ayr now has a major presence in Florida’s medical cannabis market thanks to its acquisition of Liberty Health Sciences.
Compared to most of its peers, Ayr stock is practically dirt cheap. Its price-to-sales multiple currently stands below five. With the company’s sales growth set to accelerate, I think Ayr is a stock that could realistically double in the second half of 2021.
Jushi Holdings (OTC:JUSHF) stands out as another up-and-coming U.S. MSO. It currently operates in seven states, with especially strong businesses in Pennsylvania and Illinois.
The company reported Q1 revenue of $32.3 million. This result reflected 275% year-over-year growth and an increase of nearly 30% from the previous quarter. Jushi posted positive adjusted EBITDA of $2.6 million.
I fully expect that Jushi will keep up this momentum. The cannabis operator is…
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