Reddit users have helped make Sundial Growers (NASDAQ:SNDL) a red-hot pot stock in 2021. Shares of the Canadian cannabis producer are trading up by almost 170% year to date. And at one point, Sundial had skyrocketed by more than 520%…
Some investors may be thinking about jumping aboard the bandwagon in hopes that Sundial will resume that staggering upward climb. If you’re in that group, my recommendation is that you broaden your horizons. Here are two under-the-radar cannabis stocks that I suspect you’ll like even better than Sundial Growers.
1. Ayr Wellness
Ayr Wellness (OTC:AYRW.F) is a U.S.-based multistate cannabis operator that recently changed its name from Ayr Strategies. The company initially focused only on the Nevada and Massachusetts markets, but is rapidly expanding into additional states.
Unlike Sundial, Ayr is already generating positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA). It’s also generating impressive revenue growth. In the third quarter, its revenue soared 61% quarter over quarter to $45.5 million.
We’ll have to wait until next week to learn how Ayr fared in Q4. I expect, though, that it will again deliver tremendous growth. And whatever numbers Ayr reports, they’ll represent only the tip of the iceberg when it comes to this company’s potential.
Ayr recently opened new locations in Las Vegas and in Pennsylvania. It will soon launch retail stores targeting the adult-use cannabis market in Massachusetts, where the company is already selling wholesale to 60 of the state’s 81 adult-use dispensaries.
The company also has been on a shopping spree. Its acquisitions will enable Ayr to enter Arizona, Florida, and Ohio. Arizona’s adult-use cannabis market just opened, while Florida and Ohio have thriving medical cannabis markets.
Ayr Wellness beats Sundial Growers in terms of…
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