3 Leading Cannabis Stocks to Buy in 2021 and Beyond

Saavy investors know that an evolving industry like cannabis takes time to show its full potential. The sector is sizzling with some amazing growth stocks, and all that’s needed is a little patience. The U.S. cannabis market is…

burgeoning. Not only are domestic players taking advantage of that growth, but their Canadian counterparts are also getting ready to expand in the U.S. when marijuana becomes legal at the federal level. There are many options to choose from, but my attention is on these three.

Two U.S. cannabis players, Green Thumb Industries (OTC:GTBIF)and Columbia Care (OTC:CCHWF), and Canadian pot company Tilray (NASDAQ:TLRY), have the potential to grow your money significantly in the long haul. Here’s why.

1. Green Thumb Industries

This Illinois-based multistate operator (MSO) has made quite a name for itself. The company offers medical and recreational cannabis products under the brands Beboe, Dogwalkers, Dr. Solomon’s, Incredibles, and more.

In its second-quarter ended June 30, total revenue surged 85% year over year to $222 million.  

The company stated Illinois and Pennsylvania drove most of the revenue growth. Illinois has seen outstanding recreational sales since it legalized cannabis last year. Q2 also marks Green Thumb’s fourth consecutive quarter of profitability; profits came in at $22 million versus a net loss of $13 million in the year-ago period.

With a total of 65 retail stores as of October, the company is growing revenue at a staggering rate. It still holds licenses for 111 retail locations across 14 U.S. states. As cannabis is illegal at the federal level, most states are very restrictive about issuing licenses. Licensing also involves a lengthy regulatory process. 

Therefore, securing a license is a competitive advantage for Green Thumb, making it easier to expand later. The company recently opened its third store in New Jersey, a state that recently legalized recreational marijuana. But retail sales won’t begin until 2022. Having a market presence in the medical segment will give a competitive advantage to Green Thumb when the recreational markets are up and running. It will help the company create brand awareness. We should know more about Green Thumb’s growth strategies in its upcoming third-quarter earnings report on Nov. 10.

2. Columbia Care

The smart strategy employed by this MSO is targeting key markets, like Ohio, Virginia, and Pennsylvania, that offer limited licenses to cannabis companies. That helped the company achieve a loyal customer base for its products. As a result, Columbia Care grew its total revenue by a whopping 232% year over year to $109 million.

It also resulted in adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) of $16 million compared to a loss of $4.7 million in the year-ago period.

Columbia Care also has operations in New York, New Jersey, and Arizona (which recently legalized marijuana), demonstrating the company’s growth opportunity has. Columbia Care already saw…

 

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