Key US Marijuana Stocks to Eye Before Spring 2024
The US marijuana sector is poised for significant expansion as legislative changes unfold. With more states legalizing cannabis for medicinal and recreational use, the industry’s growth trajectory looks promising. Overall, this uptrend will fuel investor interest in top US marijuana stocks before March 2024. Companies leading the charge are diversifying their operations from cultivation to retail. In addition, they’re leveraging innovative technologies to enhance production and distribution efficiencies. In general, as these firms expand their footprint, they’re well-positioned to capitalize on the burgeoning market. Yet, the regulatory landscape remains a wildcard, capable of impacting growth rates.
Investors eyeing marijuana stocks should incorporate technical analysis and proper risk management strategies. In general, technical analysis can reveal trends, support, and resistance levels, guiding entry and exit points. It’s crucial in navigating the sector’s volatility. Risk management, including stop-loss orders and portfolio diversification, is equally important. It helps mitigate potential losses, protecting investors from market downturns. As the industry grows, staying informed and adapting strategies will be key to capitalizing on opportunities. The future of the US cannabis industry is bright, but it requires careful navigation to harness its full potential.
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Pot Stocks Power List: Top US Picks for the Cannabis Investor Before March 2024
- Green Thumb Industries Inc. (OTC: GTBIF)
- Trulieve Cannabis Corp. (OTC: TCNNF)
- Verano Holdings Corp. (OTC: VRNOF)
Green Thumb Industries Inc.
In the cannabis business, Green Thumb Industries (GTI) is a well-known brand that offers goods and services that improve relaxation, enjoyment, and overall health. In addition, the company invests significantly in its personnel, retail experiences, and branding because it is steadfastly dedicated to enhancing well-being through cannabis. With a wide range of goods and services to suit various tastes and lifestyles, GTI seeks to enhance well-being significantly.
With 16 manufacturing sites and 84 retail outlets, Green Thumb Industries is a major player in the US cannabis market. The company has permits for 111 retail outlets and operates in 14 to 15 different U.S. areas. Also, this extensive network proves GTI’s commitment to offering widely accessible products and encouraging learning and exploration opportunities in its retail spaces. The company’s innovative approach to investing is demonstrated by its emphasis on creating and grabbing opportunities through cutting-edge branding and retail experiences, establishing it as a pioneer in the cannabis industry.
Highlights for the third quarter and nine months ended September 30, 2023
The organization had outstanding financial success and growth in the third quarter of 2023. Due to the company’s strategic efforts and solid market presence, revenue climbed by 9% to $275 million. $11 million in GAAP net income, or $0.05 per basic and diluted share, was recorded. This demonstrates the business’s prosperity and prudent financial management. Furthermore, the adjusted EBITDA, representing 30% of total revenue, was remarkable at $83 million. The company’s strong earnings before interest, taxes, depreciation, and amortization are highlighted by this statistic.
The company’s robust cash flow and shareholder value initiatives demonstrated its sound financial standing. There was $61 million in cash flow from operations in the third quarter. This added up to $154 million for the year thus far. The corporation was prepared for expansion and investments, with $137 million in cash after the quarter.
By repurchasing $25 million worth of shares, the corporation demonstrated its dedication to shareholders. Over 1% of all outstanding shares were represented by this. There was also a lot of retail expansion during this time. In addition, one of the things they did was open four RISE Dispensaries in Maryland to sell cannabis for adult consumption. New dispensaries have opened in Fruitland Park, Florida, and Las Vegas, Nevada.
There were more positions in Florida among the post-quarter developments. These were located at Sun City Center and Brandon. It was revealed that a cannabis dispensary in Clearwater, Florida, would open on November 10. The company’s commitment to transparency was also emphasized in the news release. A remark regarding the availability of a reconciliation using non-GAAP measures was included. This guarantees a thorough comprehension of the company’s financial well-being.
GTBIF Stock Performance
On February 26th, GTBIF shares finished at $13.65, up 3.02% in the last month of trading. In this case, the stock has a 52-week price range of $6.42-$14.30 and is up 20.90% year to date.
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Trulieve Cannabis Corp.
One of the major companies in the US cannabis market is Trulieve Cannabis Corp. The business was founded in 2016 to create medical marijuana products. In general, their primary objective is to provide excellent cannabis products and services. Trulieve is a well-known brand in the cannabis sector. By the end of 2023, Trulieve will have over 160 dispensaries operating throughout the United States. The state of Florida is where they first appeared. In addition, they have expanded into several other states as well. Among them are Connecticut, Massachusetts, and California. Their rapid growth is evidence of their commitment to quality and ease of use.
Trulieve’s business strategy is centered around vertical integration. The entire process—from cultivation to retail—is managed with this approach. It ensures consistency and high-quality results. They provide a large selection of goods to satisfy various medicinal cannabis needs. They sell concentrates, meals, flowers, and topical applications. Trulieve’s commitment to patient education and community involvement is truly remarkable. Also, they actively participate in community events and educational initiatives. This interaction strengthens their brand and fosters client loyalty. Their approach is an excellent illustration of how to blend social responsibility with business acumen.
Q3 2023 Financial and Operational Highlights
Trulieve Cannabis Corp. reported notable progress in its financial and operational aspects during the third quarter of 2023. The company made $275 million in revenue, with retail sales accounting for an amazing 96% of that amount. They made $143 million in gross profit with a 52% gross margin. Despite a net loss of $25 million, the adjusted net loss was $15 million after subtracting non-recurring expenses. This modification reflects Trulieve’s strategic financial management. The company also reported impressive adjusted EBITDA of $78 million and EBITDA of $74 million. This achievement demonstrates both their operational effectiveness and financial stability.
Trulieve Cannabis Corp. achieved notable progress in broadening its market reach through operational measures. In the third quarter, Maryland traffic increased by 235% for them. After their three dispensaries’ adult-use sales began, there was a spike in sales. Along with moving certain dispensaries, the corporation opened new locations in Florida, Georgia, and Ohio. With this growth, they have 190 retail outlets, with a cultivation and processing capacity of over 4 million square feet. Their deliberate move to open stores outside of Florida, which currently accounts for 32% of their total number, demonstrates their dedication to growing their market share.
TCNNF Stock Performance
TCNNF stock closed on February 26th at $9.99, down 15.23% in the last month of trading. In this case, the stock has a 52-week price range of $3.42-$11.96 and is up 91.68% year to date.
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Verano Holdings Corp.
Verano Holdings Inc. is a well-known player in the US cannabis business. It is recognized for its high-achieving brands and capacity to make money over a broad spectrum of geographic areas. The corporation is a vertically integrated, multi-state business considering plant advancement and fearless cannabis exploration fundamental principles. Verano Holdings differentiates itself in the medical and adult-use cannabis markets by providing an exceptional shopping experience under the Zen LeafTM and MÜVTM dispensary trademarks. The company sells legal cannabis products under well-known brand names, including AvexiaTM, BITSTM, SavvyTM, EncoreTM, MÜVTM, and VeranoTM. With 14 production facilities dispersed throughout 13 states in the US, Verano has a sizable consumer base.
Over 4,000 individuals work for Verano Holdings, which owns and operates over 120 dispensaries. Overall, with 50 active dispensaries and 28 retail locations under the Zen Leaf brand, the company has a large market reach. This year, they intend to open roughly ten more locations. This growth demonstrates Verano’s commitment to expanding its market reach and accessibility. The company offers a range of income streams and operates in 14 states across the US with licenses for production, dispensary, and growing.
Third Quarter 2023 Financial Highlights
During the third quarter of 2023, the corporation revealed $240 million in revenue in its financial report. This is a 3% increase from the prior quarter and a 5% increase year over year. In addition, they instituted consistent revenue reporting at the state level. Gross profit was recorded at $133 million, or 55% of revenue. SG&A (selling, general, and administrative) costs totaled $86 million, or 36 percent of revenue. With an adjusted EBITDA of $89 million, or 37% of revenue, the company recorded a net loss of $(18) million. Notably, free cash flow came to $27 million, capital expenses came to $10 million, and net cash from operating activities was $37 million.
The corporation has made improvements to the financial guidance for 2023. It increased its free cash flow projection from $65-75 million to $72-76 million. It also lowered its capital expenditure projection from $35–50 million to $30–37 million. These modifications show the company’s operational effectiveness and financial stability are improving.
The financial report points to a conflicting possible effect on the corporation’s stock price. Investors may be drawn in by the revenue growth and free cash flow guidance, which indicate strong financial health. On the other hand, the stated net loss may cause long-term profitability questions. A balanced viewpoint would consider the difficulties to profitability and the development of finances. Notwithstanding temporary setbacks, the company’s overall financial management and openness may be able to sustain investor confidence.
VRNOF Stock Performance
VRNOF shares closed at $5.97 on February 26th, flat in the past month of trading. In this case, the stock has a 52-week price range of $2.53-$7.08 and is up 33.26% year to date.
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US Cannabis Stocks with High Growth Prospects
As March 2024 approaches, the US marijuana industry stands on the cusp of a transformative growth spurt. In addition, this growth is driven by increasing legalization and societal acceptance. Top US marijuana stocks are at the forefront, capitalizing on this momentum. They are expanding their operations and market reach. Overall, investors are keenly watching these companies, anticipating significant returns. Also, the industry’s future looks bright, with projections indicating sustained expansion. Additionally, this optimism is rooted in evolving legislation and consumer attitudes. As such, these stocks represent compelling opportunities for those looking to diversify.
However, investing in marijuana stocks requires careful consideration. Technical analysis and risk management are indispensable tools in this volatile sector. Technical analysis helps identify trends and potential turning points. It aids in making informed decisions. Risk management, on the other hand, mitigates losses. Strategies like setting stop-loss orders and not overconcentrating in one sector are wise. By employing these approaches, investors can navigate the complexities of the marijuana market. They can capitalize on its growth while safeguarding their investments.
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