High Potential: Leading Marijuana Stocks for Your December 2023 Watchlist
As December 2023 approaches, the US cannabis industry and top marijuana stocks stand as a rapidly expanding market. Recent legalization efforts have opened new opportunities for investors. The industry is projected to reach significant growth in the next few years. This makes it an attractive sector for both short-term traders and long-term investors.
For short-term traders, technical analysis is key. It involves studying stock charts to predict future movements. This method is ideal for navigating the volatile cannabis market. Short-term trading in cannabis stocks requires a keen eye for market trends and patterns. It can offer substantial gains within a shorter time frame.
Long-term investors, on the other hand, look at the bigger picture. They consider the industry’s potential for sustained growth. In addition, investing in top US marijuana stocks could mean substantial returns over time. Also, with ongoing legislative changes, the sector promises a robust future, making it a promising addition to diversified investment portfolios.
[Read More] 3 Canadian Marijuana Stocks Investors Continue To Watch
Top US Marijuana Stocks for December 2023 Investment
- Green Thumb Industries Inc. (OTC: GTBIF)
- Curaleaf Holdings, Inc. (OTC: CURLF)
- Verano Holdings Corp. (OTC: VRNOF)
Green Thumb Industries Inc.
Green Thumb Industries (GTI) is a notable player in the cannabis industry, focusing on improving health, happiness, and comfort through its products and services. The company operates with a firm belief in the potential of cannabis to enhance well-being, investing significantly in its brands, retail experiences, and personnel. GTI’s approach is to make a profound shift in wellness by offering a diverse range of products and services tailored to different preferences and lifestyles.
With 16 manufacturing facilities and 84 retail locations, Green Thumb Industries has a strong presence in the U.S. cannabis market. The company holds licenses for 111 retail locations and operates in 14 to 15 U.S. markets. This extensive network demonstrates GTI’s commitment to making its products widely accessible and fostering educational and explorative experiences in its retail stores. The company’s forward-thinking investment strategy is evident in its focus on creating and capturing opportunities with innovative branding and retail experiences, positioning it as a leader in the future of cannabis.
Highlights for the third quarter and nine months ended September 30, 2023
- The third-quarter revenue of $275 million increased 9% sequentially.
- GAAP net income for the third quarter of $11 million or $0.05 per basic and diluted share.
- Adjusted EBITDA for the third quarter was $83 million or 30% of revenue.
- The third-quarter cash flow from operations was $61 million, bringing the year-to-date total to $154 million.
- Cash at quarter end totaled $137 million.
- Share repurchases of $25 million during the quarter, over 1% of shares outstanding.
- Adult-use cannabis sales commenced at four RISE Dispensaries in Maryland on July 1.
- RISE Dispensaries opened in Las Vegas, Nevada, and Fruitland Park, Florida.
- Additionally, after quarter end, the Company opened RISE Dispensaries in Brandon and Sun City Center, Florida, and announced the opening of a RISE Dispensary in Clearwater, Florida, on November 10.
GTBIF Stock Performance
On November 27th, GTBIF shares finished at $10.12, up 27.18% in the last month of trading. The stock has a 52-week price range of $6.42-$16.50 and is up 17.17% year to date. According to analysts at Tip Ranks, GTBIF stock has a 12-month average price target of $15.32 per share. In this case, this would represent an increase of 51.33%.
[Read More] Top Marijuana Stocks For The 2024 Green Rush
Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc., a well-known global distributor of cannabis consumer goods, is committed to improving people’s lives by growing, sharing, and recognizing the plant’s potential. This rapidly growing cannabis company and its brands, including Curaleaf, Select, and Grassroots, provide the best service, selection, and accessibility on the market for both medicinal and adult-use cannabis. Curaleaf presently has 152 dispensaries in 19 states and employs over 5,500 individuals nationwide. Curaleaf International is the largest vertically integrated cannabis company in Europe, with a specialized supply and distribution network spanning the whole continent. The company combines Modern science and research with cutting-edge production, extraction, and cultivation techniques.
Third Quarter 2023 Financial Highlights
- The net revenue is $333.2 million, excluding $3.5 million from discontinued operations, a year-over-year increase of 2% compared to Q3 2022 revenue of $325.8 million. Sequentially, net revenue declined less than 1%
- Gross profit of $150.1 million and gross margin of 45%
- Adjusted gross profit(1) of $152.2 million, resulting in adjusted gross margin of 46%
- Net loss attributable to Curaleaf Holdings, Inc., including discontinued operations, of $92.3 million or net loss per share of $0.13
- Adjusted net loss from continuing operations attributable to Curaleaf Holdings, Inc.(1) of $70.8 million or adjusted net loss per share(1) of $0.10
- Adjusted EBITDA(1) of $75.3 million or 23% of revenue
- Exited direct operations in Michigan and Kentucky, resulting in a $22 million non-cash impairment charge and $3 million in adjusted EBITDA accretion
- Cash at quarter end totaled $118.1 million
- Free cash flow from continuing operations(1) of $33.4 million
CURLF Stock Performance
On November 27th, CURLF shares closed at $3.65, up 31.29% in the past month of trading. The stock is currently trading in a 52-week range of $2.19-$7.90 and is down 15.06% year to date.
[Read More] Thanksgiving Watchlist: Leading Canadian Cannabis Stocks
Verano Holdings Corp.
Verano Holdings Inc. is a major player in the U.S. cannabis industry, known for its comprehensive revenue generation through its diverse geographic presence and high-performing brands. The company operates as a vertically integrated, multi-state operator with a mission centered on embracing plant progress and the bold exploration of cannabis. In general, Verano Holdings distinguishes itself by providing a superior shopping experience in medical and adult-use markets under the Zen Leaf™ and MÜV™ dispensary banners. The company’s portfolio includes regulated cannabis products sold under trusted consumer brands like Verano™, MÜV™, Savvy™, BITS™, Encore™, and Avexia™—Verano’s operations span 13 U.S. states with 14 production facilities, indicating its broad market reach.
Verano Holdings operates over 120 owned dispensaries and has over 4,000 employees. The company’s extensive presence includes 28 retail locations under the Zen Leaf banner and 50 operating dispensaries, with plans to open around ten more within the year. This expansion showcases Verano’s commitment to increasing its market reach and accessibility. In general, the company’s operations extend across 14 U.S. states, offering multiple revenue streams through cultivation, production, and dispensary licenses.
Third Quarter 2023 Financial Highlights
- Revenue of $240 million increased 5% year-over-year and increased 3% versus the prior quarter.
- Introducing state-level revenue to be reported on a recurring basis.
- Gross profit of $133 million or 55% of revenue.
- SG&A expense of $86 million or 36% of revenue.
- Net loss of $(18) million.
- Adjusted EBITDA2 of $89 million or 37% of revenue.
- Net cash provided by operating activities is $37 million.
- Capital expenditures of $10 million.
- Free cash flow of $27 million.
2023 Guidance
The Company raises its free cash flow guidance for the year to $72-76 million, up from $65-75 million, and lowers its capital expenditures guidance to $30-37 million, down from $35-50 million.
VRNOF Stock Performance
VRNOF shares closed at $4.34 on November 27th, up 33.38% in the past month of trading. The stock has a 52-week price range of $2.53-$6.08 and is up 38.94% year to date. According to analysts at Tip Ranks, VRNOF stock has a 12-month average price target of $8.02 per share. This would represent an increase of 85.01% from its last trading price of $4.34.
Essential US Marijuana Stocks for December 2023
In conclusion, as we delve into December 2023, the US cannabis industry presents a dynamic landscape for investors. While the growth potential is substantial, investors must approach this market with proper risk management strategies. Diversification across various cannabis stocks can help mitigate risks associated with the industry’s inherent volatility. Investors should also stay informed about regulatory changes, which can significantly impact market dynamics.
Whether opting for short-term trading based on technical analysis or long-term investing in the burgeoning cannabis sector, understanding and managing risk is key. In general, setting stop-loss orders, allocating only a portion of the portfolio to cannabis stocks, and regularly reviewing and adjusting investment strategies can help safeguard against market uncertainties. Overall, by combining informed decision-making with prudent risk management, investors can navigate the promising yet unpredictable waters of the US marijuana stock market in December 2023.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
