Top 3 Marijuana Stocks To Buy Now
There was a sense of euphoria among many cannabis investors after Democrats regained effective control of the US Senate as well as the White House. The countdown seemed to be on until major cannabis reforms were passed at the federal level. However, so far there have not been any really significant victories at the legislative level.
That doesn’t mean, however, that cannabis companies haven’t made significant strides in recent months. Some of them are arguably even more attractive than they were after election day. Here are three top stocks of marijuana to buy right now.
It was not so long ago that Cannabis Trulieve (OTC: TCNNF) was essentially a single state cannabis operator. Certainly, the company has absolutely dominated the medical cannabis market in that state of Florida. And, of course, Trulieve had taken steps to expand into other markets. However, there were valid reasons to be skeptical about the company’s ability to replicate its success beyond Florida.
This is no longer the case. Earlier this month, Trulieve announced plans to acquire Harvest health and recreation (OTC: HRVSF) in an all-stock deal valued at $ 2.1 billion. The deal will add operations in five additional states for Trulieve, including the fast-growing Arizona and Nevada markets.
The acquisition is expected to close in the third quarter of 2021. Assuming there are no roadblocks, Trulieve is expected to soon increase its estimated total addressable market by more than 50%. The merged company will also be the most profitable US multi-state operator based on adjusted earnings before interest, taxes, depreciation and amortization (EBITDA).
In the meantime, Trulieve continues to generate tremendous growth on her own. The company’s sales more than doubled year over year in the first quarter, mainly thanks to the expansion in Florida. Trulieve also recorded strong profit growth. Adding Harvest will make this winning marijuana stock even more appealing.
While there has been no tangible progress in recent months at the federal level to improve the prospects for the cannabis industry in the United States, the situation is different at the state level. For example, the Virginia legislature voted to legalize recreational marijuana for adult use. This should present a great opportunity for Jushi Holdings (OTC: JUSHF).
Virginie is not really in a hurry. The state’s adult market won’t open until 2024. However, that could actually work to Jushi’s advantage.
The company already has a medical cannabis license in northern Virginia, home to nearly 30% of the state’s population. Look for Jushi to grow his brand in the medical cannabis market over the next two years. This could give it a strong competitive position for the growing recreational market.
However, Jushi’s growth prospects do not depend solely on Virginia. The company operates in California, Illinois, Nevada and Pennsylvania, and acquisitions are underway in Massachusetts and Ohio.
Investors who might be a little nervous about buying shares of a pure-play pot stock have several attractive alternatives. I think that Scotts Miracle-Gro (NYSE: SMG) ranks among the best.
You are probably at least somewhat familiar with the Scotts line of consumer lawn and garden products. This activity remains the main source of revenue for the company, generating around three-quarters of total sales in the last quarter.
However, Scotts’ main growth driver is now its Hawthorne segment. Hawthorne is a leading supplier of hydroponics and gardening products to the cannabis industry. Its revenue grew 66% year-over-year in Scotts’ fiscal second quarter.
CEO Jim Hagedorn said on the company’s second quarter conference call: “Whether or not we see federal reform with this administration, it is clear that the momentum at the state level is not slowing down. more markets will open up and create more growth opportunities. ” I think that he is right.
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