Prime U.S. Cannabis Stocks for 2024 and Beyond
The U.S. cannabis industry and top marijuana stocks are booming like never before, and it’s not slowing down anytime soon. Picture this: in 2022, the industry was already worth a hefty $13.2 billion. It’s finding its way into all sorts of areas – beauty products, medicines, even your snacks and drinks. The main driver? More and more places are giving the green light to cannabis, especially for health treatments. We’re expecting the market to hit $15.8 billion in 2023 and skyrocket to $40.1 billion by 2030, growing at a solid 14.2% each year.
On the federal front, big moves are shaping the future of weed. The big news? The Biden team is pushing to change how marijuana is classified, which could make life a lot easier for cannabis companies. They’d get tax breaks and better access to banking. This is huge because it lines up with what’s happening in states across the country. We’ve got 23 states where you can legally kick back with recreational cannabis, and 38 states have medical marijuana programs.
For those thinking about trading cannabis stocks in 2024, it’s all about being smart and safe. Use techy tools like moving averages and RSI to spot trends and the right times to jump in or out. But don’t forget to play it safe. Set up stop-loss orders to cut your losses if things go south. Spread your bets across different investments, and keep an eye on the laws and rules that could shake up the market. That way, you’re not just following the trends; you’re staying ahead of them.
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2024’s Cannabis Market Leaders: U.S. Stocks Poised for Growth
- Curaleaf Holdings, Inc. (OTC: CURLF)
- Cresco Labs Inc. (OTC: CRLBF)
- Trulieve Cannabis Corp. (OTC: TCNNF)
Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc. is a prominent player in the cannabis industry. Headquartered in Wakefield, Massachusetts is the company. 2010 saw its founding. Its primary concentration is on the production and promotion of goods associated with cannabis. They provide a wide range of cannabis products suitable for both recreational and therapeutic purposes. In general, Curaleaf operates a wide network of dispensaries all across the nation. By 2023, they will have over 130 retail locations. They are particularly common in states like Florida, New York, and California. These states have substantial marketplaces for cannabis-related products.
The primary goal of the company’s business plan is to strengthen its position in significant US cannabis markets. Curaleaf has worked hard to grow, especially in states where marijuana has just recently been legal. They have successfully navigated the complex regulatory environments in multiple states. As a result, they have been successful in developing a sizable market presence. Curaleaf is well-positioned to lead the cannabis market in the United States thanks to its wide selection of products and huge retail network. Their strategic approach has been primarily responsible for their success.
Third Quarter 2023 Financial Highlights
Curaleaf Holdings, Inc.’s financial results in Q3 2023 were inconsistent. The business brought in $333.2 million in net revenue. Compared to $325.8 million the year before, this was a 2% rise. $3.5 million from discontinued activities is not included in the growth. However, when compared to the prior quarter, sales significantly decreased. Less than 1% was the drop.
Gross profit was $150.1 million, with a gross margin of 45%. At $152.2 million, adjusted gross profit was greater. The adjusted gross margin as a result was 46%. Curaleaf, however, suffered a substantial $92.3 million net loss. This results in a $0.13 net loss per share.
From continuing operations, the adjusted net loss was $70.8 million. For each share, this is $0.10. At $75.3 million, the company’s adjusted EBITDA was recorded. This accounts for 23% of their income. Curaleaf ceased operations in Kentucky and Michigan. A $22 million non-cash impairment charge resulted from this. Additionally, adjusted EBITDA accretion amounted to $3 million.
They had $118.1 million in cash at the end of the quarter. Their ongoing operations generated $33.4 million in free cash flow.
Nine Month Results
In the first nine months of 2023, Curaleaf’s financials showed growth and challenges. Their net revenue increased by 7% year-over-year. It reached $1,001.4 million. The gross profit for this period was $458.3 million. The gross margin stood at 46%. However, the adjusted gross profit decreased by 9%. It amounted to $464.7 million. The adjusted gross margin remained consistent at 46%.
Operating cash flow was strong at $73.0 million. Yet, the company recorded a significant net loss. This loss was $218.0 million, or a net loss per share of $0.31. The adjusted net loss was even higher at $178 million. This is an adjusted net loss per share of $0.25. Adjusted EBITDA for the nine months was $221.9 million. This accounts for 22% of revenue.
These figures reflect the challenges and opportunities in the cannabis market. They highlight Curaleaf’s resilience and adaptability.
CURLF Stock Performance
On December 22nd, CURLF shares closed at $3.75, up 3.02% in the past month of trading. In this case, the stock is currently trading in a 52-week range of $2.19-$5.80 and is down 12.74% year to date.
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Cresco Labs Inc.
Cresco Labs Inc. is a market leader in branded cannabis products. It functions as a subsidiary of Sunnyside Dispensaries. The organization provides a wide range of the most well-known cannabis brands in America. Nationwide, Cresco Labs will have 70 Sunnyside dispensaries open as of September 2023.
This business is well-represented in key markets like Massachusetts, Pennsylvania, and Illinois. It has the highest share position in these states. One of Cresco Labs’ best-selling product lines is their line of branded flower and concentrates. It is also well-regarded for branded sweets and vapes. In the cannabis business, Cresco places a strong emphasis on brand awareness and quality.
Third Quarter 2023 Financial Highlights
Cresco Labs reported a Q3 2023 revenue of $191 million, with a net loss of $113 million due to one-time non-cash impairment charges. Adjusted EBITDA was $49 million. They retained top share positions in Illinois, Pennsylvania, and Massachusetts. Cresco Labs emphasized its “Year-of-the-Core” strategy, focusing on core markets and products.
CRLBF Stock Performance
CRLBF shares finished on December 22nd at $1.40, down 16.17% in the last month of trading. In this case, the stock is presently trading in a 52-week price range of $1.00-$2.77, showing a 22.22 percent decline year to date.
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Trulieve Cannabis Corp.
Trulieve Cannabis Corp. is a significant player in the cannabis sector in the United States. The company was established in 2016 and focuses on producing medical cannabis products. Their main goal is to offer top-notch cannabis goods and services. Trulieve has made a big name for itself in the cannabis industry. Trulieve will have approximately 160 dispensaries operating around the US by the end of 2023. They originated in Florida, where they are most prevalent. Additionally, they have grown into a number of additional states. Connecticut, Massachusetts, and California are a few of these. Their quick expansion is a testament to their dedication to excellence and accessibility.
The core of Trulieve’s business strategy is vertical integration. From cultivation to retail, the entire process is under control using this method. It guarantees uniformity and quality of the output. They offer a wide range of products to meet different demands related to medical cannabis. They sell foods, topical applications, concentrates, and flowers. It is impressive how dedicated Trulieve is to patient education and community involvement. In addition, they take an active part in educational programs and community events. Their brand and client loyalty are strengthened by this engagement. Their strategy is an excellent example of combining business savvy with social responsibility.
Q3 2023 Financial and Operational Highlights
Significant financial and operational advancements were recorded by Trulieve Cannabis Corp. in the third quarter of 2023. The business brought in $275 million, of which an astounding 96% came from retail sales. They had a significant 52% gross margin and $143 million in gross profit. After deducting non-recurring charges, the adjusted net loss was $15 million despite a net loss of $25 million. The strategic financial management of Trulieve is reflected in this adjustment. Impressive EBITDA of $74 million and adjusted EBITDA of $78 million were also announced by the corporation. Their financial stability and operational effectiveness are demonstrated by this performance.
Operationally, Trulieve Cannabis Corp. made significant strides in expanding its market footprint. They experienced a 235% increase in Maryland traffic in the third quarter. This surge followed the launch of adult-use sales at their three dispensaries. Additionally, the company also opened new dispensaries in Florida, Georgia, and Ohio, while relocating others. This expansion brought their total number of retail locations to 190, with over 4 million square feet of cultivation and processing capacity. Their strategic expansion outside of Florida, which now constitutes 32% of their retail locations, showcases their commitment to broadening their market presence.
TCNNF Stock Performance
TCNNF stock closed on December 22nd at $5.07, down 11.83% in the last month of trading. In this case, the stock has a 52-week price range of $3.42-$7.84 and is down 33.03% year to date.
Key U.S. Marijuana Stocks for 2024
As we edge closer to 2024, savvy observers are watching the U.S. cannabis market closely. It’s unpredictable, yet ripe with opportunities for those who choose wisely. The secret? Opt for stocks with strong fundamentals, not just popularity. Also, smart trading means leveraging tools like moving averages and Bollinger Bands for optimal trade timing. In addition, staying informed about industry trends and regulatory updates is crucial—they can significantly impact stock values.
In cannabis stock investment, diversification is key. Spread your risks across various companies. Implement stop-loss orders to manage potential losses. Overall, keeping abreast of legal developments is essential. Combining wise stock selection with strategic risk management could lead to fruitful outcomes in the expanding U.S. cannabis industry as 2024 progresses.
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