2022 could be a decisive year for the cannabis sector and undervalued marijuana stocks that have been under pressure. An increasing number of Americans support the legalization of marijuana. At present…
That said, Grand View Research estimates that the global legal marijuana market could expand at a compound annual growth rate (CAGR) of more than 25% between 2022 and 2030. So, against this backdrop, investors are focused on searching for undervalued cannabis stocks to buy before they heat up.
Many cannabis stocks have suffered significant declines in recent months. For example, the AdvisorShares Pure U.S. Cannabis ETF (NYSEARCA:MSOS) — one of the largest and most liquid cannabis ETF — has declined 37% year-to-date (YTD).
However, analysts anticipate a recovery in the cannabis industry due to improving profitability. In addition, expanding revenue growth will help these companies self-finance further growth. That development would be a critical competitive advantage given that cultivators struggle to gain access to loans due to federal regulations.
So, with that information, here are three undervalued marijuana stocks that could gain traction in 2022.