None of the California students who originally connected 420 with cannabis use had a clue what they were starting. Today, 420 day — April 20 — is celebrated by many cannabis proponents. And they have more to celebrate this year than ever. New York, New Mexico, and Virginia recently passed legislation to legalize recreational marijuana, bringing the total number of states where pot is or will soon be legal to 17…
There are also more opportunities for investors to profit from the booming U.S. cannabis industry than ever before. In keeping with the 420 theme, here are four marijuana stocks to buy on 420 day that could realistically soar 20% or more this year.
1. Ayr Wellness
Ayr Wellness (OTC:AYRW.F) started out focusing on the cannabis markets in Massachusetts and Nevada. The company’s scope is much bigger now. Thanks to acquisitions, Ayr now also operates in Arizona, Florida, Ohio, and Pennsylvania.
There will soon be another state added to the list. Ayr plans to acquire Garden State Dispensary in a deal that will give it three cannabis dispensaries in New Jersey. This transaction is expected to close in the third quarter of 2021.
With all of this gobbling up of smaller cannabis companies, Ayr will rank as a top-five multistate operator (MSO). It’s also arguably the biggest bargain among its peers with the lowest price-to-sales (P/S) ratio in the industry. With its revenue growth set to accelerate, I think that Ayr stock could easily jump another 20% this year.
2. Cresco Labs
Cresco Labs (OTC:CRLBF) also ranks as one of the most attractively priced U.S. pot stocks with a P/S multiple only a little higher than Ayr’s. Like Ayr, Cresco has grown tremendously through acquisitions.
The company is the largest cannabis wholesaler in the U.S. thanks to its early 2020 buyout of Origin House. It’s a top cannabis wholesaler in California, Illinois, and Pennsylvania. The company also operates retail cannabis stores in the latter two states plus Arizona, Massachusetts, New York, and Ohio.
All of these markets should give Cresco significant growth opportunities. Even better, Cresco’s recent acquisition of Bluma Wellness will make the company a contender in Florida’s booming medical cannabis market. New York’s legalization of…
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