Several regulatory updates in the United States of late have proven to be quite beneficial for the marijuana industry. Senate Majority Leader Chuck Schumer has released a draft of legislation this summer seeking to remove…
the federal government’s ban on marijuana. The wave of legalization at the state level throughout the U.S. has sparked hope among cannabis investors who are already bullish on this sector. Consequently, cannabis stocks continue to hold favor among speculators and hyper-growth investors right now.
Although the bill to legalize marijuana is certainly not entirely free of obstacles, investors have reason to be optimistic. Since 2017, there have been a number of impressive rallies in this sector sparked by federal legalization in Canada in 2018, and anticipation around the potential for U.S. legalization soon.
Interestingly, the Prime Alternative Harvest Index, which keeps a record of the performance of cannabis stock, shot up 46% in mid-April. However, this index came back to earth relatively quickly as investors re-rated the likelihood of federal legalization materializing. That said, this index was up by 14.5% year-to-date through mid-August.
Investors may be on edge with regards to how the cannabis sector will fare through the end of 2021. However, the drafting of this new bill to legalize marijuana has gotten investors on edge about the idea of legalization.
Here’s a list of seven cannabis stocks that can potentially surge this Fall in this context:
- Curaleaf (OTCMKTS:CURLF)
- Cresco Labs (OTCMKTS:CRLBF)
- Tilray (NASDAQ:TLRY)
- Cronos (NASDAQ:CRON)
- GrowGeneration (NASDAQ:GRWG)
- Green Thumb Industries (OTCMKTS:GTBIF)
- Innovative Industrial Properties (NYSE:IIPR)
Top Cannabis Stocks to Buy: Curaleaf (CURLF)
Curaleaf Holdings is the largest cannabis company in the United States, with a massive market capitalization of $8 billion. Although based in the U.S., the company is listed in Canada and trades over the counter in the U.S.
Curaleaf is among the most vertically-integrated cannabis stocks. This company owns and operates more than 100 retail locations, along with 23 cultivation facilities and 30 processing sites. Curaleaf focuses its operations in 23 highly-populated, limited-license states such as New Jersey, New York, Florida, Arizona and Massachusetts.
Curaleaf is also unique in that this company is one of the few cannabis players to report positive EBITDA. As per the company’s first quarter financial reports released on May 10, Curaleaf registered sales of $260.3 million. Moreover, the company’s EBITDA profit came in at at $62.6 million. Total cash and outstanding debt was of $315 million and $340 million, respectively, as of Q1 of 2021.
In Q2 2021, Curaleaf registered an adjusted EBITDA of $84 million on $312 million in revenue. Both numbers registered massive quarter-over-quarter growth. Accordingly, investors bullish on the cannabis market domestically certainly have reason to consider Curaleaf one of the top cannabis stocks to buy heading into the Fall.
Cresco Labs (CRLBF)
Similar to Curaleaf, Cresco Labs is another major cannabis company operating in multiple U.S. states. The company does business across 10 states, with 18 manufacturing facilities and 32 dispensaries spread out across the country. The company is focused on expansion by any means necessary — organic and acquisition-based growth are welcome. Cresco Labs is significantly smaller than Curaleaf, with a valuation of…
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