Marijuana stocks don’t seem to be making the big headlines they used to. But that doesn’t mean the green wave has stopped.
According to a recent Gallup poll, 16% of Americans said they smoked marijuana in the past week, while just 11% said they smoked a tobacco cigarette.
It is the first time that smoking pot is more popular than smoking cigarettes in America. It’s also the highest rate of reported marijuana use in the past week since Gallup began tracking the data in 2013.
Experimentation with the substance has also increased in America — by a lot.
In 1969, when Gallup first asked the question if you had ever tried marijuana, only 4% of Americans said yes. Today, nearly half of Americans say they’ve tried it.
Let’s take a look at three marijuana stocks poised to capitalize on this trend. They are listed on stock exchanges in Canada but traded OTC in the US – analysts also see significant upside in this trio.
Trulieve Cannabis Corp (TCNNF)
Trulieve Cannabis entered the cannabis industry by winning the first medical marijuana application in Florida in 2015. Today, it has 100 stores in the Sunshine State and approximately 150 operating and affiliated dispensaries across the country.
The company claims to have market leadership not only in Florida, but also in Arizona and Pennsylvania.
Trulieve’s finances have grown tremendously, and even the COVID-19 pandemic couldn’t stop the momentum. In 2020, revenue increased 106% from the 2019 level to $521.5 million.
In 2021, revenue rose 80% to $938.4 million.
According to its latest earnings report, Trulieve earned $320.3 million in revenue in the second quarter of 2022, up 49% year over year.
The stock, however, is down more than 55% year-to-date.
Canaccord analyst Derek Dley sees a recovery on the horizon. The analyst has a “buy” rating on Trulieve and a C$57 price target on its Canadian-listed shares — suggesting a potential upside of 298%.
Green Thumb Industries (GTBIF)
Green Thumb is a vertically integrated cannabis company based in Chicago. It has 17 cultivation and production facilities, six consumer product brands, 77 open retail locations and operations in 15 US markets.
Just like Trulieve, Green Thumb stock hasn’t been a hot commodity: shares are down more than 30% in 2022.
Business, however, is still on the rise.
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Revenue was $261 million for the quarter ended in September, up 12% year over year and 3% sequentially.
But the best part was the bottom line. Green Thumb earned $10 for the quarter, marking its ninth consecutive quarter of positive net income.
Stifel analyst Andrew Partheniou has a “buy” rating on Green Thumb and a C$30.50 price objective on its Canadian-listed stock. Given that these shares are currently trading at C$16, the price target represents a potential upside of 91%.
Curaleaf Holdings (CURLF)
With a market capitalization of approximately $4.6 billion CAD, Curaleaf is a larger company than both Trulieve and Green Thumb.
It has a huge presence in the US cannabis industry, with 26 grow sites, approximately 4.4 million square feet of grow capacity, 136 retail locations and more than 2,150 wholesale partner accounts.
During the third quarter, revenue rose 7% year over year to $340 million.
In particular, Curaleaf has a strong focus on research and development: the company is currently growing new product revenue by 75% year-over-year.
However, this heavyweight isn’t immune to the sector-wide sell-off as shares are down more than 30% year-to-date.
Alliance Global Partners analyst Aaron Gray has a “buy” rating on Curaleaf and a C$12 price target on its Canadian-listed shares — about 60% above where they sit today.
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This article provides information only and should not be construed as advice. Provided without warranty of any kind.