Cannabis has emerged as a big winner in the 2020 U.S. presidential election. All five states that voted on cannabis legalization passed their ballot measures. That list includes:
- Arizona: recreational cannabis
- New Jersey: recreational cannabis
- Montana: recreational cannabis
- South Dakota: recreational and medical cannabis
- Mississippi: medical cannabis
This is another big step forward for the U.S. cannabis industry.
33 states have already legalized medical or recreational cannabis. Adding five more states to the mix will add billions in annual sales. The growing green wave has analysts predicting enormous growth for the U.S. industry in the next five years.
U.S. Cannabis Industry Setting Up For Major Growth
Here are some more details from mjbizdaily.com.
Retail sales of medical and recreational cannabis in the United States are on pace to eclipse $15 billion by the end of 2020, an increase of approximately 40% over 2019 sales figures, according to exclusive projections from the 2020 edition of the Marijuana Business Factbook.
Total U.S. sales could rise as high as $37 billion by 2024, according to exclusive projections from the latest Factbook, which was released Monday at MJBizConNEXT Direct.
While the entire sector stands to benefit from this explosive growth, a popular group of early industry leaders could benefit the most.
This exclusive group of stocks benefits from a number of competitive advantages over its peer.
- They are the largest companies in the U.S. industry
- The companies operate in multiple states
- They own hard-to-get permits to grow and sell cannabis
- They have the best product portfolios
- Cash in the bank to fund more growth
3 Stocks to Play the Vote
Cresco Labs (CRLBF) is an early leader in the U.S. industry. Headquartered in Chicago with a market cap of $1.5 billion, Cresco owns an impressive portfolio of cannabis assets. That includes 29 retail licenses, 18 dispensaries, and 15 production facilities. Cresco is positioned for long-term success in the cannabis industry.
Cresco shares have seen a big rebound from the COVID low in March. However, Cresco is still trading 40% below the all-time high from 2019. Take a look at the 2020 chart below.
Green Thumb Industries (GTBIF) is another early leader in the U.S. industry. Headquartered in Chicago, Illinois, Green Thumb has a market cap of $2.2 billion. This powerhouse company also owns and operates an impressive portfolio of cannabis assets. This portfolio includes licenses for 96 retail locations and 13 manufacturing facilities operating in 12 states.
In August, Green Thumb became the first U.S. cannabis company to report revenue of more than $100 million in one quarter. Green Thumb is also positioned for long-term success in the U.S. cannabis industry.
Green Thumb shares have also seen a big rebound from the COVID low in March. Nonetheless, these shares are still trading 20% below the 52-week high. Take a look at the 2020 chart below.
Curaleaf Holdings (CURLF) is the largest cannabis company in the U.S. with a market value of $4.8 billion. Headquartered in Wakefield, Massachusetts, Curaleaf just completed a $700 million acquisition that gives it the best portfolio in the industry. That includes operations in 23 states, 135 dispensary licenses, 88 operating dispensaries, 30 processing facilities, 22 cultivation facilitates, and more than 1.6 million square feet of cultivation capacity.
Curaleaf now has the best chance to be the first U.S. cannabis company to generate more than $1 billion in annual sales. After the acquisition, no other U.S. cannabis company comes close to Curaleaf’s portfolio of dispensaries, greenhouses, and processing facilities. This portfolio of assets should drive huge revenue growth in the next few years – particularly because U.S. cannabis sales are expected to surge.
Curaleaf has also seen a big rebound from the COVID low in March, but these shares are still trading 10% below the 52-week high. Take a look at the 2020 chart below.
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Michael Vodicka |
Author Michael Vodicka owns shares of Cresco Labs (CRLBF), Green Thumb Industries (GTBIF), and Curaleaf Holdings (CURLF).The information contained in this post is for informational and educational purposes only. The trading ideas and stock selections represented on the Cannabis Stock Trades website are not tailored to your individual investment needs. Readers and members are advised to consult with their financial advisor before entering into any trade. Cannabis stocks carry a certain level of risk and we accept no responsibility for any potential losses. All trades, patterns, charts, systems, etc. discussed are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author and do not necessarily reflect those of the publisher.
