Even though marijuana stocks are trading below their February highs now, they still have tremendous potential. There isn’t much movement around federal legalization now, but state legalization will…
not slow down. As a result, the cannabis market will keep booming, thus taking pot stocks to greater highs.
Two pure-play cannabis companies, Jushi Holdings (OTC:JUSHF) and Cresco Labs (OTC:CRLBF), and another pot-related company, GrowGeneration (NASDAQ:GRWG), are climbing the list of top marijuana stocks to buy and hold for the long term. Let’s see why.
1. Cresco Labs
This Illinois-based multi-state operator (MSO) might not have a large footprint nationally yet, but its revenue and profits are surging even with just 37 dispensaries across 10 states. In its second quarter, total revenue jumped a whopping 123% year over year to $210 million.
Cresco’s smart strategy of targeting key cannabis markets (such as Pennsylvania, Illinois, and Ohio) that offer limited licenses has worked in its favor. These states restrict the number of licenses they offer and stores that can open in the state. This restricted competition has helped Cresco build a loyal customer base for its various brands like Mindy’s Edibles, High Supply, Cresco Reserve, and more.
It helped the company garner $101 million just from retail revenue. The boom in recreational cannabis in its home state, Illinois, has also been favorable for Cresco. The market is on its way to cross last year’s $1 billion in total recreational sales. With 11 Sunnyside retail stores in the state, it can take advantage of this opportunity. It has also helped Cresco report a net profit of $2.7 million in the second quarter, a drastic improvement from its $41 million loss in the year-ago period.
2. Jushi Holdings
This Florida-based vertically integrated cannabis company might be small by market cap ($669 million), but it has tremendous potential to shine as the industry expands. With 20 retail stores nationwide, its total revenue jumped a whopping 219% year over year to $48 million in its second quarter, which ended June 30. The company gives credit for this growth to four key markets: Pennsylvania, Illinois, California, and Virginia.
Jushi has followed the same strategy as Cresco by…
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