Three Pot Stocks To Watch For The End of 2020
When it comes to finding a marijuana stock to watch, there are a few things to look for. For one, it is extremely important to know a company’s financials and balance sheet. With this information, we can begin to separate which marijuana stocks are worth watching and which are not. Although investors tend to lean toward more popular pot stocks like Tilray Inc. (TLRY Stock Report) and Planet 13 Holdings Inc. (PLNHF Stock Report), investors should also consider the smaller marijuana stocks. This includes penny pot stocks and those with smaller market caps.
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These companies can offer a high amount of bullish potential but they do carry a greater amount of risk. This risk stems from two factors. For one, the lower the price, the more volatile a pot stock usually is. This is true for most stocks and not just specifically marijuana stocks. Two, smaller pot stocks tend to have less volume, making swings in price more common. But, every investor is different, and therefore each investing style is different. For that reason, investors are often looking for specific factors in the pot stocks that they aim to watch. With that in mind, let’s take a closer look at these three marijuana stocks to watch.
Marijuana Stocks to Watch: Cresco Labs Inc.
Cresco Labs Inc. (CRLBF Stock Report) is one of the leading vertically integrated marijuana stocks to watch. Based out of the U.S., CRLBF stock is categorized as a MSO pot stock. The company also claims that it is the largest supplier of branded products to the wholesale cannabis industry in the U.S. As of late 2020, CRLBF stock has seen momentum due to its 19 retail locations. These locations span nine states around the country. In addition, Cresco Labs has given investors a great deal of confidence in its business model.
The company has stated that it generated almost $95 million in its most recent second quarter. This represents a 42% gain from where it was in the quarter prior. In addition, the company reported roughly 30% in sales growth in the majority of states that it works in. One of the reasons that CRLBF stock has seen so much momentum recently is the fact that marijuana demand has greatly increased. In the past six months, Covid has led to a greater demand for cannabis around North America. With this, it looks like Cresco Labs could have a bright future ahead.
Marijuana Stocks to Watch: Trulieve Cannabis Corp.
Trulieve Cannabis Corp. (TCNNF Stock Report) is another one of the larger MSOs working out of the U.S. The company reportedly operates as many as 61 dispensaries making it one of the largest dispensary operators in the country. What makes TCNNF stock so different is the company’s underlying business model. While many MSOs have chosen to be in as many states as they can, Trulieve Cannabis has picked the state of Florida as its main target. Of its 61 dispensaries, 59 of them are located in the Sunshine State. But, the company has been able to deliver some incredible financials to investors.
In its most recent second quarter, TCNNF stock reported revenue north of $120 million. This represents a 26% gain from the previous quarter. In addition, the company reportedly has a 50% market share in the entire state of Florida. For the long term, it seems as though Trulieve’s success could be dependent on whether or not Florida legalizes cannabis for recreational use. This would undoubtedly give TCNNF stock an advantageous position in the market. By the end of this year, Trulieve has stated that it aims to open nine more stores in Florida. With strategic locations in California and Massachusetts as well, Trulieve Cannabis Corp. remains a leading pot stock to watch.
Marijuana Stocks to Watch: GrowGeneration Corp.
GrowGeneration Corp. (GRWG Stock Report) is one of the leaders in the ancillary cannabis industry. Shares of GRWG stock have performed well beyond expectations this year, with its value more than quadrupling in 2020 thus far. In addition, the company recently reported seeing a quarter of record revenue for the tenth time in a row. In its latest second quarter, the company reported revenue of around $43 million, shooting up by roughly 123% year over year.
In addition, GrowGeneration stated that its products have more than doubled to around $2.6 million as opposed to $1 million in the previous year. GrowGeneration operates as a supplier of hydroponic grow supplies to those who wish to grow cannabis and other plants. With more people at home growing marijuana, it seems as though GRWG stock could continue to perform quite well in the near future. Well, we don’t know for certain how long this bullish sentiment will last, it does look like GRWG stock is a solid pot stock to watch in the short term.
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