Harvesting High Returns: Top US Marijuana Stocks for 2024
As we approach 2024, the landscape of the cannabis industry and top marijuana stocks in the United States continues to evolve, presenting unique opportunities for both short-term traders and long-term investors. Currently, federal policies regarding marijuana remain a pivotal factor influencing the market. Despite marijuana still being classified as a Schedule I drug at the federal level, there’s growing anticipation around potential legislative changes. This anticipation is fueling market volatility, making cannabis stocks a hotbed for short-term trading strategies. Day traders and swing traders are finding lucrative opportunities in these fluctuations, capitalizing on the rapid changes in stock prices driven by both rumors and real policy shifts.
For long-term investors, the cannabis sector offers a different kind of promise. The gradual shift in public opinion and state-level legalizations are seen as harbingers of eventual federal legalization, or at least decriminalization, which could unlock immense market potential. This perspective encourages a more strategic, patient approach to cannabis investing. By carefully selecting stocks with solid fundamentals and growth potential, long-term investors can position themselves to benefit from the industry’s maturation. Moreover, a balanced approach that combines the agility of short-term trading with the stability of long-term investing could be key to navigating the complexities of the cannabis market in 2024. This dual strategy allows investors to exploit immediate market movements while maintaining a foothold in the industry’s future expansion, making it an exciting time for those watching marijuana stocks in the US.
Leading US Cannabis Stocks to Watch in 2024
- Curaleaf Holdings, Inc. (OTC: CURLF)
- Green Thumb Industries Inc. (OTC: GTBIF)
- Jushi Holdings Inc. (OTC: JUSHF)
Curaleaf Holdings, Inc.
One significant company in the cannabis market is Curaleaf Holdings, Inc. Wakefield, Massachusetts serves as the company’s headquarters. It was founded in 2010. Its focus is on the cultivation and marketing of cannabis-related products. They have a large selection of cannabis products for both recreational and medical use. Across the country, Curaleaf runs a vast network of dispensaries. They will have more than 130 retail outlets by 2023. Particularly in states like Florida, New York, and California, they are very prevalent. There are sizable markets for cannabis goods in these states.
The company’s business plan is centered on increasing its presence in important cannabis marketplaces in the United States. Curaleaf has made significant efforts to expand, particularly in states where cannabis has recently been legalized. They have handled the intricate regulatory frameworks in several states with success. They have been able to create a significant market presence as a result. With its extensive retail network and a vast range of products, Curaleaf is well-positioned to lead the cannabis industry in the United States. Their success has been largely attributed to their strategic strategy.
Third Quarter 2023 Financial Highlights
In Q3 2023, Curaleaf Holdings, Inc. had a mixed financial performance. The company’s net revenue hit $333.2 million. This was a 2% increase from the previous year’s $325.8 million. The growth excludes $3.5 million from discontinued operations. However, revenue slightly declined compared to the previous quarter. It fell by less than 1%.
Gross profit was $150.1 million, with a 45% gross margin. Adjusted gross profit was higher at $152.2 million. This resulted in a 46% adjusted gross margin. Yet, Curaleaf saw a significant net loss of $92.3 million. This translates to a net loss per share of $0.13.
The adjusted net loss from continuing operations was $70.8 million. This is $0.10 per share. The company’s adjusted EBITDA stood at $75.3 million. This is 23% of their revenue. Curaleaf exited operations in Michigan and Kentucky. This led to a $22 million non-cash impairment charge. It also resulted in $3 million in adjusted EBITDA accretion. They ended the quarter with $118.1 million in cash. Their free cash flow was $33.4 million from continuing operations.
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 15th, CURLF shares closed at $3.89, up 14.75% in the past month of trading. The stock is currently trading in a 52-week range of $2.19-$5.80 and is down 9.48% year to date.
Green Thumb Industries Inc.
Green Thumb Industries (GTI) is a well-known company in the cannabis industry, recognized for providing products and services that enhance comfort, enjoyment, and well-being. The company is fully committed to improving well-being through cannabis, which is why it invests extensively in its retail experiences, workforce, and branding. GTI aims to drastically improve well-being by offering a diverse array of products and services that cater to different preferences and lifestyles.
Green Thumb Industries is well-represented in the cannabis industry in the United States, having 16 manufacturing facilities and 84 retail locations. The company operates in 14 to 15 distinct U.S. areas and has licenses for 111 retail locations. This vast network is evidence of GTI’s dedication to providing its products with broad accessibility and promoting learning and exploration opportunities in its retail locations. The company’s focus on developing and seizing chances with cutting-edge branding and retail experiences, positioning it as a leader in the future of cannabis, is indicative of its forward-thinking investment strategy.
Highlights for the third quarter and nine months ended September 30, 2023
In the third quarter of 2023, the company demonstrated remarkable growth and financial performance. Revenue increased by 9%, reaching $275 million, a testament to the company’s strong market presence and strategic initiatives. The reported GAAP net income stood at $11 million, equating to $0.05 per basic and diluted share. This highlights the company’s profitability and sound financial stewardship. Additionally, the adjusted EBITDA was impressive at $83 million, accounting for 30% of the total revenue. This figure underscores the company’s operational efficiency and robust earnings before interest, taxes, depreciation, and amortization.
The company’s financial health was evident in its strong cash flow and shareholder value initiatives. The third quarter saw a cash flow from operations of $61 million. This contributed to a year-to-date total of $154 million. With a cash position of $137 million at the quarter’s end, the company was ready for growth and investments.
The company showed commitment to shareholders by repurchasing $25 million in shares. This was over 1% of the total outstanding shares. The period also marked significant retail expansion. This included initiating adult-use cannabis sales at four RISE Dispensaries in Maryland. New dispensaries opened in Las Vegas, Nevada, and Fruitland Park, Florida.
Post-quarter developments included more openings in Florida. These were in Brandon and Sun City Center. A new dispensary in Clearwater, Florida, was announced to open on November 10. The press release also highlighted the company’s dedication to transparency. It included a note on the availability of a reconciliation of non-GAAP measures. This ensures a comprehensive understanding of the company’s financial health.
GTBIF Stock Performance
On December 15th, GTBIF shares finished at $10.42, up 7.98% in the last month of trading. Currently, the stock has a 52-week price range of $6.42-$12.49 and is up 20.60% year to date.
Jushi Holdings Inc.
Jushi Holdings Inc. is a key operator in the cannabis sector, focusing on diverse operations in the United States. The corporation works in several industries, such as distribution, retail, processing, and production of cannabis products. Their product line serves the needs of the cannabis markets for both medical and recreational use. Jushi is renowned for its dedication to producing high-quality goods and creative business strategies.
As of late 2023, Jushi Holdings Inc. operates a significant number of dispensaries across the United States. They have a particularly strong presence in states like Pennsylvania, Illinois, and California. These states are key markets due to their favorable cannabis laws and large consumer base. Jushi’s strategic expansion in these areas showcases its focus on capturing major market shares in lucrative regions. This approach has positioned Jushi as a key competitor in the rapidly evolving U.S. cannabis landscape.
Third Quarter 2023 Financial Highlights
JUSHF Stock Performance
JUSHF stock closed at $0.54.16 on December 15th, down 33.14% in the last month of trading. Currently, the stock has a 52-week price range of $0.350-$1.13 and is down 52.90% year to date.
Trading And Investing In The US Cannabis Industry For 2024
In conclusion, the US marijuana stock market is brimming with potential as we head into 2024. Stocks like Curaleaf Holdings, with their expansive retail operations and robust financials, stand out. In general, these companies are navigating the evolving cannabis landscape with strategic growth and shareholder value initiatives. Their resilience in the face of regulatory challenges and market fluctuations makes them prime candidates for investor watchlists.
Investors looking for promising opportunities in the cannabis sector should keep a close eye on these stocks. Overall, the blend of strong operational cash flows, expansion in retail, and shareholder-friendly moves are key indicators. As the US inches closer to potential federal policy changes, these stocks could offer both short-term gains and long-term growth prospects. They represent a dynamic segment in a market poised for significant transformation.
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