Best US Marijuana Stocks of 2023
The US cannabis market landscape has dramatically changed by 2023, providing investors with various intriguing growth opportunities. The industry has seen exceptional expansion as a result of multiple states legalizing cannabis for both recreational and medical purposes, making it an attractive area for investment. Understanding the factors in this industry is essential as we examine the top US marijuana stocks of 2023. Recent data suggests that the legal cannabis market in the United States would increase at rates surpassing 20% per year, reaching an astounding $41 billion by 2025. In addition to cannabis fans, this quick expansion has drawn astute investors hoping to profit from the green rush.
Employing technical analysis and implementing adequate risk management are crucial tactics for success for anyone considering entering the US marijuana stock market. Technical analysis is the process of analyzing historical price charts and making predictions about future price movements using a variety of indicators. Technical analysis gives valuable insights into potential entry and exit points in a volatile business like cannabis, where stock prices can undergo jarring swings. It’s equally important to implement effective risk management techniques to limit potential losses, like placing stop-loss orders and diversifying your portfolio. Remember that navigating this dynamic market takes industry knowledge, technical analysis abilities, and a disciplined approach to risk management as we examine the top US marijuana stocks of 2023.
Top US Marijuana Stocks for 2023
- Curaleaf Holdings, Inc. (OTC: CURLF)
- Jushi Holdings Inc. (OTC: JUSHF)
- Verano Holdings Corp. (OTC: VRNOF)
Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc. is a well-known international cannabis consumer product provider dedicated to improving people’s lives by cultivating, sharing, and celebrating the plant’s potential. The Company and its brands, such as Curaleaf, Select, and Grassroots, offer industry-leading service, product selection, and accessibility throughout the medicinal and adult use sectors as a high-growth cannabis company renowned for quality, knowledge, and dependability. At now, Curaleaf has 152 dispensaries across 19 states and employs about 5,500 people in the country. The largest vertically integrated cannabis business in Europe, Curaleaf International, has a specialized supply and distribution network that covers the whole European market. The business blends cutting-edge science and research with cutting-edge cultivation, extraction, and production.
Second Quarter 2023 Summary vs. Same Year-Ago Quarter
- Revenue in the second quarter of 2023 increased 21% to approximately $5.0 million compared to $4.1 million for the same period in 2022. The improvement was driven by an increase in cannabinoid segment revenues of 151% to $1.9 million compared to $0.7 million for the same period in 2022, partially offset by lower revenues in the non-cannabinoid segment.
- The all-in cost per gram of dry flower was $0.70. There is no comparative data from the prior year, as the Company did not harvest crops at its Colombian operations in the year-ago quarter.
- Gross profit, including a $0.2 million inventory provision, increased 10% to $2.7 million, compared to a $2.5 million gross profit in the year-ago quarter, which included a $0.2 million inventory provision. Adjusted gross profit (a non-GAAP financial measure defined and reconciled herein), which excluded such inventory provisions, increased by 8% to $2.9 million compared to $2.7 million.
- Gross margin was 54.7% compared to 60.5% last year. Adjusted gross margin (a non-GAAP financial measure defined and reconciled herein), which excluded inventory provisions, was 58.8% compared to 66.3%. The decrease was attributed to customer and product mix differences compared to the year-ago period.
- Operating expenses in the second quarter of 2023 improved to $5.9 million compared to $7.8 million for the same period in 2022.
- Net loss was $3.6 million compared to $1.0 million. Net loss in the year-ago quarter included a $6.9 million gain on investment following the Company’s sale of a portion of its minority equity stake in Cansativa, along with a $1.3 million gain on remeasurement of warrant liability. Excluding the gains, the net loss in the year-ago quarter would have been approximately $9.2 million.
- Adjusted EBITDA (a non-GAAP financial measure defined and reconciled herein) improved to $(2.1) million compared to $(3.5) million.
Reiterated 2023 Outlook
With the Company’s current commercial traction and visibility and its ongoing work to drive cost savings and improve capital efficiency—Clever Leaves is reaffirming its full-year 2023 financial outlook. The Company expects its full-year revenue to range between $19 million and $22 million, with an adjusted gross margin of between 58% and 63%. The Company also expects its 2023 adjusted EBITDA to range between $(13.6) million and $(10.6) million. Additionally, Clever Leaves anticipates approximately $0.5 million to $0.7 million of annual capital expenditures in 2023, representing an estimated 50% reduction compared to 2022.
CURLF Stock Performance
On October 5th, CURLF shares closed at $3.98, down 9.55% in the past month of trading. The stock is currently trading in a 52-week range of $2.19-$7.90 and is down 7.38% year to date. According to analysts at CNN Business, CURLF stock has a 12-month average price target of $5.38 per share. In this case, this would represent an increase of 35.07% from its last trading price of $3.98.
Jushi Holdings Inc.
Jushi Holdings Inc. is an American hemp and cannabis company expanding its market share in the medical and recreational marijuana industries. The company’s main goal is to supply the US market with branded cannabis and hemp-derived products. 34 Jushi-owned and -managed dispensaries nationwide employ the BEYOND/HELLO brand. Jushi also has 31 retail licenses in the country, and its national cannabis dispensary brand, Beyond/Hello, is growing both online and offline. The business was able to extend its vertically integrated operations into Nevada in April by purchasing NuLeaf Inc.
Second Quarter 2023 Financial Highlights
- Total revenue of $66.4 million
- Gross profit margin was 46.0%, compared to 36.7% in the second quarter ended June 30, 2022 (“Q2 2022”) and 42.9% in the first quarter ended March 31, 2023 (“Q1 2023”)
- Net Loss of $14.0 million, compared to net income of $12.1 million in Q2 2022 and net loss of $12.4 million in Q1 2023
- Adjusted EBITDA1 of $12.6 million, an improvement of $12.1 million year-over-year and $5.0 million sequentially
- Cash, cash equivalents, and restricted cash of $32.1 million as of the quarter end
JUSHF Stock Performance
JUSHF stock closed at $0.7894 on October 4th, up 1.22% in the last month of trading. The stock has a 52-week price range of $0.350-$2.34 and is up 3.61% year to date.
Verano Holdings Corp.
Verano Holdings Corp. is a multi-state, vertically integrated cannabis company with headquarters in the US. The business offers a range of brand names for its high-end cannabis products. Verano has 129 dispensaries, 14 manufacturing and processing facilities, and 13 states. In spite of this, the business has 63 sites in Florida and is well-known there. Two of the company’s retail brands, Zen LeafTM and MÜVTM, operate dispensaries that cater to both medical and recreational customers. On June 1st, the company unveiled its 68th location in Florida, in Miami Kendall.
Second Quarter 2023 Financial Highlights
- Revenue of $234 million increased 5% year-over-year and increased 3% versus the prior quarter.
- Gross profit of $115 million or 49% of revenue.
- SG&A expense of $85 million or 36% of revenue.
- Net loss of $(13) million.
- Adjusted EBITDA2 of $72 million or 31% of revenue.
- Cash flow from operations of $24 million for the quarter.
- Capital expenditures of $8 million for the quarter.
- Free Cash Flow1 of $16 million for the quarter.
VRNOF Stock Performance
VRNOF shares closed at $4.14 on October 5th, down 9.01% in the past month of trading. In this case, the stock has a 52-week price range of $2.53-$6.1770 and is up 32.69% year to date.
Navigating the Green Market: Top US Marijuana Stocks in 2023
The legal cannabis market is anticipated to grow rapidly over the next few years, making the US marijuana companies a beacon of opportunity for investors in 2023. Additionally, it is clear from our examination of the top US marijuana stocks for 2023 that the green revolution is gaining steam and offering various investment opportunities. These equities, which include well-known companies, represent an industry segment that is changing the face of the economy.
It’s crucial to remember that the cannabis industry is still unstable and subject to legislative changes. Overall, investors must combine knowledge of the sector, technical and analytical expertise, and responsible risk management techniques to navigate these waters properly. Investors can take advantage of the US marijuana market’s potential by maintaining knowledge and adopting a disciplined strategy. With a little luck and wise choice-making, they can also reap the rewards of this expanding sector.
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