Investors Are Watching These Two Marijuana Stocks In November
Marijuana stocks and the cannabis industry have changed dramatically over the past few years. When we entered into 2020, things were looking good for both major and minor marijuana stocks. This includes top pot stocks like Tilray Inc. (TLRY Stock Report) and Aphria Inc. (APHA Stock Report) as well as smaller pot stocks like KushCo Holdings Inc. (KSHB Stock Report). But, within the cannabis industry there are only a few ways to find true value. One of the most important steps in finding a pot stock to watch is first doing the research. This means finding out all one can about a given marijuana stock before investing.
The research here usually includes profitability, balance sheets, and what a marijuana stock is doing in the long term. With this information, investors can have a better idea of what kind of performance a company will have. Second, investors should always be looking at volume. This will help to figure out what type of liquidity one has in their investments. With so many marijuana stocks to watch, finding the right one can be much easier than previously imagined. As we move into November, investors are continuing to watch these two marijuana stocks.
An MSO Marijuana Stock To Buy Or Sell: Cresco Labs Inc.
Cresco Labs Inc. (CRLBF Stock Report) is one of the most promising MSOs in the cannabis industry. With marijuana becoming legal in Illinois at the beginning of this year, the company has since built out a massive presence in the state. In the first month of legalization, CRLBF stock saw Illinois post almost $40 million in sales total. By September, that number had almost doubled to north of $67 million. In addition to having retail stores, CRLBF stock has benefitted from being a vertically integrated producer of cannabis. This means that it manufactures the products that it sells in its stores. And, the company sells these products to other dispensaries as well. This serves to help broaden Cresco’s industry reach.
In its most recent second quarter, Cresco Labs posted revenue of $94 million. This is a jump of almost 220% year over year. With 60% of this going to wholesale cannabis sales, the other 40% went to retail. Currently, the company has 19 dispensaries that span nine states. In the same quarter, the company posted a higher EBITDA of almost $17 million. This is quite a lot compared to the previous years same quarter of $2.2 million. With its third quarter results coming on November 18th, CRLBF stock remains a leading pot stock to watch.
An MSO Marijuana Stock To Buy Or Sell: Green Thumb Industries Inc.
Green Thumb Industries Inc. (GTBIF Stock Report) is another leading MSO that is similar to Cresco. The company has also been working in the Illinois market but to a greater degree. Currently, it has eight of its almost fifty stores within Illinois. Earlier in October, analysts stated that the state of Illinois could see as much as $2.5 billion in value within the next few years. GTBIF stock has succeeded in the past due to its large number of in house brands. This includes products under the brands of Dogwalkers, Dr. Solomons and more. In addition to operating in Illinois, the company has dispensaries in 11 states around the country. This means that it has a very broad reach that is only continuing to grow.
Financially, GTBIF stock looks like it is in a good position to grow as well. Year over year, GTBIF stock reported revenue growth of almost 170%. This represents around $120 million in revenue during its second quarter. With this, the company was able to post $35 million in EBITDA, which is more than ten times the $2.3 million in posted in the previous year. What makes GTBIF stock even more interesting is that it has 96 retail licenses that it has yet to capitalize upon. This means that it could see some solid growth in the next few years. With that in mind, GTBIF stock remains one of the most promising MSO pot stocks in the cannabis industry.
Are MSO Pot Stocks the Way to Go?
MSO marijuana stocks present an interesting opportunity for investors. There are several reasons why this is the case. For one, MSOs are typically vertically integrated. This means that they are often able to push higher profitability than most other similar marijuana stocks. In addition, these companies are subject to see the greatest amount of growth due to them being the most forward facing aspects of the cannabis industry. If legislation continues to go in the right direction, there’s no telling how far MSOs could go in the next few years. With that in mind, investors should continue to stay up to date on the industry and the current events.