Marijuana legalization in New York is finally a done deal. The New York State Senate and Assembly passed the bill last month, subsequently signed by Gov. Andrew Cuomo. It becomes the 16th state in the country to legalize recreational marijuana, following its neighbor New Jersey’s footsteps. As the Empire State is the nation’s second-most-populous state (behind California), weed stocks are expected to gain a huge deal down the road…
New York is set to benefit from more than $350 million in taxes from the legalization. Cuomo has been instrumental in pushing for marijuana legalization and was one of the few governors aggressively campaigning for it.
Cannabis multi-state operators (MSOs) with a presence in New York or New Jersey are set to benefit the most from the legalization. These companies already have the infrastructure in place to ramp sales quickly.
Let’s look at seven of the most promising weed stocks after the legalization of marijuana in New York.
- Curaleaf Holdings (OTCMKTS:CURLF)
- Cresco Labs (OTCMKTS:CRLBF)
- Green Thumb Industries (OTCMKTS:GTBIF)
- Columbia Care (OTCMKTS:CCHWF)
- Acreage Holdings (OTCMKTS:ACRHF)
- Ayr Wellness (OTCMKTS:AYRWF)
- AdvisorShares Pure US Cannabis ETF (NYSEARCA:MSOS)
Weed Stocks: Curaleaf (CURLF)
Curaleaf Holdings is among the top multi-state operators in the U.S. based on revenue. It has two core segments — cannabis and non-cannabis operators. CULRF stock should benefit immensely from New York’s legalization of recreational marijuana, with a market share of over 25% in the state.
With its market share, it is by far the strongest player in the state’s cannabis market. It currently operates a cultivation center and four dispensaries in New York. Additionally, it supplies product to a variety of operators in the state and New Jersey.
The company’s operational performance remains quite strong, with the pandemic doing little to stop its massive sales growth. In its most recent quarter, revenue was up 205% to $230 million. Additionally, adjusted EBITDA of $53.8 million grew 289% year-over-year. Therefore, Curaleaf has a solid foundation to take the New York pot market by storm.
Cresco Labs (CRLBF)
Cresco Labs is another leading MSO with a sizeable presence across the country. It is a significant player in New York’s medical cannabis market, with four medical dispensaries under its Sunnyside brand. Additionally, it also has a medical cannabis delivery program in the state and continues to expand into new states. Hence, CRLBF stock is one of the most promising weed stocks with the legalization of marijuana in New York.
Cresco has had an impeccable track record, recording triple-digit growth in revenues over the past five quarters. In its fourth quarter, revenues grew by a whopping 292% to $162 million. Moreover, adjusted EBITDA rose 8% to $50 million.
The company continues to expand its blueprint across other states. It acquired Bluma Wellness to move into…
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