In the next few years, sector players are predicting that the U.S. marijuana market could expand at an astonishing rate of 20% per year to over $100 billion, a staggering increase from a size of roughly $13 billion in 2019. So far, 15 states and the District of Columbia have legalized recreational cannabis and 36 and D.C. permit medical marijuana. The green wave sweeping the nation shows…
no sign of subsiding; Federal decriminalization of marijuana may be on the table for the new Biden administration.
Significant opportunities lie ahead for pot growers domesticated in the U.S. and foreign distributers that hope to expand across the nation. Let’s look at three of the top growers to buy now.
Curaleaf Holdings (OTC:CURLF) is the nation’s largest marijuana grower, with a wide selection of products including cannabidiol (CBD) offerings, pre-rolls, oil extracts, and edibles. Its earnings report for the third quarter, which ended Sept. 30, showed revenue growth of 164% year over year to $193.2 million. And its EBITDA operating income increased more than threefold versus the year-ago quarter, to $42.3 million. Curaleaf also expanded its operations into Ohio, Illinois, and Pennsylvania. The pot grower now has a presence in 23 states and runs close to 100 dispensaries.
As with all growth stocks, Curaleaf shares do not come cheap. The company trades at a pricey premium of 11.6 times sales and 4.9 times book value, compared to an industry average of 7.8 times revenue and 5.4 times net assets. But a company that can more than double its revenue each year is well worth the price. And there may even be more upside than that for the stock, as suggested in this look at its latest earnings.
2. Green Thumb Industries
Another very successful U.S. marijuana grower, Green Thumb Industries (OTC:GTBIF) was founded in 2014 and is now on track to generate over $500 million in sales in 2020. That’s a significant gain from…
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