Investing In The US Cannabis Industry Before 2022
Are you looking for the best marijuana stocks to buy before 2022? At the present time, the cannabis sector has fallen near the lowest trading levels seen in 2021 in December. This comes after the SAFE Banking Act was removed from the NDAA and there have not been any changes to federal marijuana legalization and reform this year. For new investors top cannabis stocks could be trading at levels that may offer upside next year. One area that has seen significant declines in the market in Q4 is US marijuana stocks.
As it stands top-tier MSOs have been reporting strong revenue growth throughout the year. Although this has not translated into gains in the market it does show leading cannabis companies are growing rapidly in the US. In 2021 US cannabis companies surpassed Canadian LPs to become the largest revenue-producing entities in the cannabis industry.
As new states continue to establish legal medical and recreational markets in 2022 the cannabis market has substantial growth potential for the next five years. According to a Statista report on December 15th recreational cannabis is forecast to reach an estimated $25 billion by 2025. In 2021 US recreational sales are estimated at $14.9 billion legal sales are forecast to increase steadily each year.
Finding The Best US Pot Stocks To Invest In
Before investing in top cannabis stocks it’s important to do your own due diligence on a company. Researching a company’s earnings and press releases can help you find the best-performing ones in the industry. It’s also important to follow how marijuana stocks behave in the market. Establishing a good entry point can help you maximize your returns and make you a successful trader. With top cannabis stocks, this is especially important because of the market volatility the sector is known for. Let’s look at 2 of the best US marijuana stocks for your 2022 watchlist.
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Top US Marijuana Stocks For 2022
- Trulieve Cannabis Corp. (OTC: TCNNF)
- Curaleaf Holdings, Inc. (OTC: CURLF)
Trulieve Cannabis Corp.
Trulieve Cannabis Corp. is a high-performing cannabis company in Florida, with roughly 46% of the current market share. The corporation inaugurated its 111th store in the state on December 8th. Following the acquisition of Harvest Health & Recreation Inc., the firm now expects to generate over $1.2 billion in revenue in 2021. With 157 retail dispensaries, the firm is currently the industry leader in the United States. In addition, the corporation has a cultivation and processing capacity of 3.5 million square feet. Trulieve has been granted a production license in Georgia, allowing the company to expand its footprint in the Southeast cannabis market. In addition, the firm opened its first dispensary in Massachusetts, providing another market for future growth.
Trulieve reported its third-quarter 2021 results in November, marking the company’s 15th consecutive profitable quarter. In general, the company’s net revenue climbed by 64 % year over year to $224.1 million. As a result, Trulieve earned $153.9 million in gross profit, with a gross margin of 68.7%. The company generated $98 million in Adjusted EBITDA or 43.7 percent of revenue. In addition, the company started its first agricultural activities and opened its first dispensaries in West Virginia.
TCNNF stock closed at $24.50 on December 15th, down 20.20 % in the last month. The stock is currently trading in a 52-week price range of $23.38-$53.73, down 22.52 % year to date. TCNNF stock has a 12-month median price target of $64.84 a share, according to CNN Business analysts. This would be a 164.64 percent increase from its last trading price of $24.50. Trulieve does have the potential to become one of the largest MSOs in the United States in 2021, and one of the top marijuana stocks to watch right now.
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Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc. is a multi-state operator in the United States that sells packaged cannabis products and has 113 retail locations. In addition, Curaleaf International, a totally owned subsidiary of the corporation, has begun developing in Germany, improving access to medicinal cannabis products through its wholly-owned subsidiary Adven GmbH. In the United States, Curaleaf’s famous Select brand is one of its most well-known. With the acquisition of Tryke Companies in November, Curaleaf expanded its footprint in three states. This transaction adds holdings in Arizona, Nevada, and Utah to the company’s portfolio. Curaleaf has also expanded its B Noble partnership in 10 states, including the medical sector in New York. The B Noble collaboration, in particular, is working to improve social equality in the business.
Curaleaf announced $317 million in revenue for the third quarter of 2021 in November, increasing 74 % year over year. In more detail, the company’s Adjusted EBITDA was $71 million, up 69% year over year. Curaleaf’s cash flow from operations in Q3 2021 was $52 million, or 16% of revenue. As a result, gross revenues from cannabis sales in Q3 2021 were $144 million, up 61% year over year. Los Suenos Farms was also acquired, raising the company’s total cultivation capacity to 4.4 million square miles.
On December 15th, CURLF stock closed at $9.09, down 34.79 percent over the past six months. The stock is currently trading in a 52-week range of $8.21-$18.38 and is down 24.07 % year to date. CURLF stock has a 12-month average price forecast of $18.59 per share, according to Tip Ranks analysts. This projection indicates a 104.51 % increase compared to the previous price of $9.09.
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