There are a lot of marijuana companies that should see great growth this year, but these three in particular are good buys in April…
If you’re looking for marijuana stocks with the potential to double your investment this year, Harvest Health & Recreation (OTC:HRVSF), Curaleaf Holdings (OTC:CURLF), and Planet 13 Holdings (OTC:PLNH.F) are good places to start. They all have significant tailwinds, are showing outstanding revenue growth, and are well-situated to grow their businesses this year.
There’s still plenty of risk in marijuana stocks, with some wild price swings in stock shares, but these companies have strong financials and momentum to back up investors’ enthusiasm.
I also like that all three have a clear vision into who they are. Curaleaf sees itself as a dominant national player, particularly in the Northeast. Harvest Health is looking to use its dominance in Arizona to replicate success in other states with limited licenses, and Planet 13 is unique in its SuperStore approach in Nevada and, soon, in Southern California.
Harvest Health & Recreation is poised to take off
Harvest Health & Recreation is in a great spot right now. It operates 15 of Arizona’s 123 dispensaries, and the state just opened up to adult-use sales on Jan. 22. In the small window of time between that date and the end of February, the company said its revenues increased “between 45% and 248%” compared to the fourth quarter. That’s just a hint of things to come.
The company’s shares are up more than 270% over the past year and more than 37% this year, but the real reason to get excited about this stock is its fundamentals.
Fourth-quarter sales were a reported $69.9 million, up 85% year over year and 13% sequentially. The company also reported $9.1 million in adjusted EBITDA, its second consecutive quarter of positive EBITDA.
Harvest Health is also investing heavily in Florida, Pennsylvania, and Maryland. All three only allow medical marijuana sales for now, but as in Arizona, that likely will change. By that time, Harvest Health should have solid positions in those states.
Curaleaf’s size gives it an advantage
Curaleaf’s revenue was a reported $626.6 million last year, up 186% year over year, which it says makes it the largest cannabis company in the United States by revenue. It’s not profitable yet, but it’s certainly getting there after growing EBITDA 17% last year and with seven consecutive quarters of positive adjusted EBITDA. In the fourth quarter, it posted adjusted EBITDA of $53.8 million, compared to $13.8 million for the fourth quarter of 2019. Revenue in the fourth quarter was a record $230.2 million, up 26% quarter over quarter and 184% year over year.
It’s one of the biggest multistate cannabis operators, with 101 dispensaries — and licenses for 135 — across 23 states, but like Harvest Health, it is focusing on states with limited licenses: Arizona, Florida, Illinois, Massachusetts, New Jersey, New York, and Pennsylvania. It is headquartered in Wakefield, Mass., and is especially strong in the Northeast, where it says it is No. 1 in market share in New York, New Jersey, Pennsylvania, Connecticut, Vermont, and Maryland. It’s also No. 2 behind Harvest in Arizona.
Its shares are up more than 284% over the past 12 months and more than 24% this year. It also has ambitious expansion plans, as its recent $286 million deal to buy…
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