One of the best ways to gain wealth is to get in on the ground floor of something that goes on to become really big. Semiconductors back in the ’70s, PC software in the 80s, and the internet in the ’90s are great examples…
But what’s something that might be a fit today? Consider cannabis. While the cannabis industry is already growing significantly, it’s only in the early innings. There’s a realistic chance that investing in the best cannabis companies could create tremendous wealth over time.
Here are three marijuana stocks that could even be millionaire makers.
Ayr Wellness
Ayr Wellness (OTC:AYRW.F) is something of a rarity among cannabis stocks: It’s relatively inexpensive. The multistate cannabis-operator’s shares trade at only five times sales, well below nearly every other pot stock on the market.
Even better than its attractive valuation, though, is its growth. The company’s sales soared 74% year over year and nearly 23% quarter over quarter in the first quarter of 2021 to $58.4 million. Ayr expects even more impressive growth in Q2.
There’s a good reason behind Ayr’s optimism. The company recently closed on key acquisitions in Arizona, Florida, and Ohio. It should complete another acquisition in New Jersey this summer. Ayr’s business in its other markets of Arizona, Massachusetts, Nevada, and Pennsylvania also continues to grow at a strong pace.
Over the long term, Ayr could become much bigger. CEO Jonathan Sandelman told my Motley Fool colleague Eric Volkman last month that Ayr “love[s] the idea of setting up in neighboring states, when possible.” He also said that the company thinks that Florida “has the potential to rival California” if it legalizes recreational marijuana.
Cresco Labs
Cresco Labs (OTC:CRLBF) ranks as one of the biggest multistate cannabis operators in the U.S. It’s also one of the most attractively valued, with shares trading at a little over four times sales.
The company reported revenue of $178.4 million in Q1, up nearly 169% year over year and almost 10% quarter over quarter. Cresco projects an annualized revenue run rate of more than $1 billion by the end of this year.
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