Best US Marijuana Stocks In 2021
In December many of the top marijuana stocks to buy have dropped near the lowest values seen in 2021. This year cannabis investors have been expecting the US government to end marijuana prohibition and establish banking reform for the industry. Because of the delays in this process, the entire cannabis sector has been impacted negatively giving up most of the gains established since the presidential election in November of 2020.
One area that has been impacted severely in Q4 is US marijuana stocks. At the present time, many of the best US cannabis stocks to buy are trading on the OTC markets. This is because they are federally illegal and not able to trade on the major US stocks exchanges like the Canadian LPs. For the most part, this has caused the US cannabis sector to miss one of the fastest-growing retail investment pools like traders using the Robinhood Markets, Inc. (NASDAQ: HOOD) platform or WeBull.
In addition to the lack of exposure to the broader markets, US pot stocks have also lost investors to the cryptocurrency market and its growing popularity. Although in 2021 top marijuana stocks have been declining since peaking in February these same companies have been delivering strong revenue growth and expanding across the US rapidly. This year leading US cannabis companies have claimed their dominance in the growing cannabis market.
Finding The Best Pot Stocks For 2022
In fact, currently, the largest US cannabis companies have outgrown the Canadian LPs with most of the top-tier US MSO bringing in revenue in the billions of dollars. As more states establish legal cannabis markets these figures could continue growing significantly. From current trading levels, many analysts are forecasting substantial upside for the best marijuana stocks to invest in. Let’s look at 3 of the best US marijuana stocks to add to your watchlist before 2022.
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Best US Marijuana Stocks Right Now
- Trulieve Cannabis Corp. (OTC: TCNNF)
- Curaleaf Holdings, Inc. (OTC: CURLF)
- Cresco Labs Inc. (OTC: CRLBF)
Trulieve Cannabis Corp.
First up is Trulieve Cannabis Corp. a top-performing cannabis company with approximately 46% of the current market share in Florida. On December 1st the company opened its 110th store in the state. After closing the acquisition of Harvest Health & Recreation Inc. the company now has a consensus 2021 revenue of over $1.2 billion. Currently, the company is a US industry leader with 157 retail dispensaries. In addition, the company has 3.5 million square feet of cultivation and processing capacity. Trulieve received a production license approval in Georgia giving the company further presence in the Southeast cannabis market. Also important, the company opened its first dispensary in the state of Massachusetts adding another market for future expansion.
In November Trulieve delivered its third-quarter 2021 results showing its 15th consecutive profitable quarter. In general, the company’s net revenue increased to $224.1 million an increase of 64% year over year. As a result, Trulieve saw a gross profit of $153.9 million and a gross margin of 68.7%. The company produced an Adjusted EBITDA of $98 million or 43.7% of revenue. Additionally, the company began its first cultivation operations in West Virginia and opened its first dispensaries in the state.
TCNNF Stock Performance
TCNNF stock closed on December 3rd at $26.45 down 30.47% in the last six months. Currently, TCNNF stock has a 52-week price range of $$23.38-$53.73 and is down 16.35% year to date. According to analysts at CNN Business TCNNF stock has a 12-month median price target of $64.84 per share. In this case, this would be a 145.13% gain from its last trading price of $26.45. In 2021 Trulieve could be one of the largest MSOs in the US and one of the best marijuana stocks to watch right now.
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Curaleaf Holdings, Inc.
Next up is Curaleaf Holdings, Inc. a US MSO that provides packaged cannabis products and operates 113 retail locations nationwide. Additionally, the company has also begun expanding with Curaleaf International advancing the accessibility of medical cannabis products in Germany through its wholly-owned subsidiary Adven GmbH. Curaleaf has the popular brand Select one of its leading brands in the US. In November Curaleaf expanded its presence in three states with the acquisition of Tryke Companies. This acquisition adds assets in Arizona, Nevada, and Utah. Also, important Curaleaf has advanced its B Noble partnership in ten states including the New York Medical market. Specifically, the B Noble partnership is advancing social equity in the industry.
In November Curaleaf reported its third-quarter 2021 results with revenue of $317 million up 74% year over year. Specifically, the company had an Adjusted EBITDA of $71 million an increase of 69% year over year. Curaleaf had Q3 2021 cash flow from operations of $52 million or 16% of revenue. As a result, gross profits in Q3 2021 on cannabis sales was $144 million up 61% year over year. The company also closed the acquisition of Los Suenos Farms bringing its current cultivation capacity to 4.4 million square miles.
CURLF Stock Performance
CURLF stock is closed at $9.23 on December 3rd down 37.76% in the past six months. Currently, the stock has a 52-week price range of $8.59-$18.38 and is down 22.90% year to date. According to analysts at Tip Ranks CURLF stock has a 12-month average price target of $18.77 per share. This forecast represents an upside of 103.36% from its last trading price of $9.23.
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Cresco Labs Inc.
Cresco Labs Inc is one of the largest vertically integrated cannabis companies in the US market. Presently, the company is considered the number one wholesaler of branded cannabis products in the US. In fact, according to a recent BDSA report, Cresco is the leading cannabis brand in Illinois and Pennsylvania. At the present time, Cresco operates 43 retail locations across 11 states with 20 production facilities and 47 retail licenses. In addition, the company announced a portfolio expansion of its Good News brand with more selections in the edibles and vaping areas. In October the company is shifting to owned brand distribution in California to increase profitability and reduce third-party distribution. Cresco announced the acquisition of Blair Wellness Center a Maryland dispensary. On November 25th the company announced it completed the acquisition of three high-performance Pennsylvania dispensaries.
In November the company delivered third-quarter 2021 revenue of $215.5 million up 40.6% year over year. As a result, Cresco produced a gross profit of $116.7 million, or 54.2% of revenue. In addition, Cresco has an Adjusted EBITDA of $56.4 million an increase of 24% quarter over quarter. The company reaffirmed its previous guidance with gross profit margins of more than 50% for the rest of 2021 and Q4 revenue between $235-$245 million. Another important factor that left Cresco with a loss is an impairment charge of $291 million related to changes in intangible assets dealing with the company shift in strategy for its California operations.
CRLBF Stock Performance
CRLBF stock closed on December 3rd at $8.09 down 9.39% in the last five trading days. Currently, the stock has a 52-week price range of $7.48-$17.49 down 17.99% year to date. According to analysts at Tip Ranks CRLBF stock has a 12-month median price target of $16.69 per share. This analysis represents an upside of 106.31% from its last trading price of $8.09.
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