One billion in sales represents a massive achievement amongst pot stocks. Ten years ago, the idea of a publicly-traded marijuana stock reaching $1 billion in revenue was unheard of. Now, however, it seems as though hitting that milestone may become a reality. Many top marijuana stock investors thought last year would be the year for at least one company to reach numbers that big. But, large selloffs and other major road bumps prevented certain cannabis companies from reaching this goal. As of late, signs of stability in the market are helping investors to once again believe that in sales in the billion-dollar range is very much possible sooner than later.
Many people who watch the market are saying that the highest volume of sales is coming from multi-state operators. These companies work by opening dispensaries in select states around the U.S. Oftentimes, MSO pot stocks are vertically integrated. This means that margins tend to be much higher than traditional marijuana growers. High margins mean a company can achieve larger sales much faster than businesses with slimmer margins. This is the main reason behind the belief in MSOs reaching record numbers in sales. The two pot stocks listed below are showing positive signs for future momentum.
Will This Marijuana Stock Reach New Highs?
Green Thumb Industries (GTBIF Stock Report) (GTII) has been working to build its revenue to new heights. Since the beginning of 2020, Green Thumb has been opening new dispensaries around the country. At the beginning of February, Green Thumb stated that it had opened its 41st dispensary in the country. What makes this really interesting out of the 41 dispensaries that have opened 7 are in the state of Illinois.
This strong grasp on the Illinois market is a perfect example of the company targeting select markets for their future potential. Some projections have shown that by the year 2024, Illinois could reach $1.1 billion in annual revenue from cannabis sales. If Green Thumb is able to own a large enough market share, this venture could prove quite profitable for the company.
If all this wasn’t enough, Green Thumb currently has a heavy presence in Nevada. Nevada already has a booming cannabis market which gives Green Thumb quite the advantage. Right now, projections for the company’s sales are estimated to hit around $460 million before the close of the year. Green Thumb has stated that it plans to double the number of retail locations it has by the year 2022. For that reason, Green Thumb Industries looks like a solid contender for as they work to hit that $1 billion mark.
A Pot Stock With A Handful of Retail Licenses
Harvest Health and Recreation (HRVSF Stock Report) (HARV) is another marijuana penny stock to watch with a is another top tier cannabis company that is joining the race to be one of the first companies to hit $1 billion in sales. The main reason for this is that it holds a big handful of retail licenses in as many as 18 states around the nation. Right now, that number totals 130 licenses pending some deals that are being closed. Although Harvest Health and Recreation is not as well known as other MSOs, its number of licenses puts it on par with anyone of the top MSO pot stocks.
In terms of reaching their full potential as a company, Harvest Health’s best chances are for Arizona to legalize cannabis recreationally. With the 2020 elections on the horizon, there is potential for this to happen. The company already has a sizable presence in Arizona which gives it quite an advantage over newcomers. If the state were to go recreational, Harvest Health would already have a solid footprint to work from. With CBD deals also in the companies portfolio, that $1 billion number does not look to be too far off.
Of course $1 billion in sales is a hefty number to wrap your head around. But, the way things are currently, progressing in the cannabis industry seems as if anything is possible. Regardless, many large and small-cap pot stocks are positioning themselves to catch potential momentum.
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