The U.S. cannabis business has been booming of late, and because of this, marijuana stocks continue to be a topic of interest on Wall Street. We saw how the sector benefited from the novel coronavirus pandemic-induced tailwinds and hit a record $17.5 billion in sales. However…
those numbers pale compared to the $31 billion the sector is estimated to generate this year. Though cannabis sales have been on fire, marijuana stocks haven’t performed, especially during the second half. President Joe Biden has been relatively slow in embracing cannabis reform, which has investors worried about future prospects.
Moreover, federal reforms are likely to supercharge growth for the sector next year. However, marijuana producers with robust fundamentals and those that can capitalize on the sector tailwinds are likely to reign supreme. On top of that, the longer regulatory timelines will finally allow the more promising marijuana stocks to cement their positioning in the sector.
Nevertheless, with multiple growth catalysts in place, I expect an even stronger showing for marijuana stocks in 2022. And with that in mind, these are some of the best ones you could pick to start the year on a high.
- Sundial Growers (NASDAQ:SNDL)
- Cresco Labs (OTCMKTS:CRLBF)
- Green Thumb Industries (OTCMKTS:GTBIF)
- Trulieve Cannabis (OTCMKTS:TCNNF)
- Curaleaf (OTCMKTS:CURLF)
- Tilray (NASDAQ:TLRY)
- GrowGeneration (NASDAQ:GRWG)
Now, let’s dive in and take a closer look at each one.
Marijuana Stocks To Buy: Sundial Growers (SNDL)
I recently covered Sundial Growers and felt it still has much to prove to its investors in terms of its fundamentals. However, one can’t argue with the momentum it’s riding after a solid third quarter, where gross revenues were up 57% quarter-over-quarter and up 12% year-over-year (YOY).
Moreover, its acquisition — liquor store chain Alcanna — expects to have an even better fourth quarter. Additionally, SNDL stock trades its book value and right around 60 cents per share.
This year, sundial Growers became a meme stock and consequently took advantage of that status to fortify its balance sheet. It now boasts $629.14 million CAD in cash equivalents as of September. Hence, it could be an incredible platform to push forward and continue investing in new targets.
Cresco Labs (CRLBF)
Marijuana wholesaler Cresco Labs is one of the best performing cannabis players in the U.S. With most of its revenues coming from its wholesale operations, it doesn’t need a massive retail network to expand or consistently generate healthy cash flows. However, it also has an incredible retail footprint that grows with every passing quarter. Moreover, it has its presence in the top U.S. pot states in California, Massachusetts and New York.
Furthermore, Cresco’s revenues have been growing at a solid clip. In its most recent quarter, its sales shot up more than 40% YOY. Additionally, its Q3 adjusted EBITDA improved 24% from Q2 2021.
So, with all of that in mind, Cresco remains on track towards profitability and expanding its footprint across the States — pushing CRLBF stock to new heights.
Marijuana Stocks To Buy: Green Thumb Industries (GTBIF)
Green Thumb Industries has positioned itself as a major player in the high-growth cannabis sector. The cannabis consumer packaged goods giant has its presence in 13 different states. Moreover, it has swiftly expanded its business in the past seven years and has done so with solid fundamentals across the board. Despite a stellar report card in the past few years, GTBIF stock only trades at six times trailing sales.
Green Thumb’s financials are rock-solid, which places it among the crème de la crème of the cannabis world. For instance, its five-year revenue growth has averaged a staggering 184%. Moreover…
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