November 3 is a big day for the U.S. cannabis industry. Five U.S. states will vote on measures to legalize medical or recreational cannabis.
Leading cannabis market research firm New Frontier Data’s new research report projects that the vote will have a big impact on U.S. cannabis sales.
“The 2020 election could be one of the most consequential and historical events to change the landscape of the legal U.S. cannabis industry,” said New Frontier Data Founder & CEO Giadha A. DeCarcer. “With $9 billion in new revenue from 2022-2025, should all five states ballot measures pass, New Frontier Data estimates that revenues from all legal U.S. markets will reach $35.1B in 2025.”
Back in 2019, Aurora Cannabis was the rock star of the cannabis industry. At its peak, Aurora nabbed a market cap of $10 billion.
The company had delivered enormous gains to early investors. It also and ranked as the #1 held stock on the popular stock trading app, Robinhood.
The enthusiasm was driven by Aurora’s impressive portfolio of cannabis businesses and assets.
That portfolio included 15 global cannabis cultivation centers capable of producing more than 700,000 kilograms of cannabis per year. Aurora had also secured exclusive cannabis permits in potentially lucrative international markets including Germany and Australia. Aurora invested hundreds of millions to build an unparalleled global cannabis production and distribution network.
While the U.S. cannabis industry is one the verge of the biggest catalyst in four years, some of the most promising cannabis stocks are on sale.
Cannabis stocks performed poorly in 2019 after the young industry failed to meet investor expectations. Today that dynamic has reversed.
After poor returns in 2019, investor expectations are running low. That’s why cannabis stocks are still trading well below the 52-week high.
These Stocks May Win on Election Night
With election night right around the corner, the sector’s early leaders, and those with a strong presence in states that are set to cast ballots, could see explosive moves.
On top of that, these stocks are already trading far below their 52-week high and have the room to run.
#1 – Cresco Labs (CL, CRLBF)
Cresco Labs (CSE: CL, OTC: CRLBF) is an early leader in the U.S. cannabis industry. Headquartered in Chicago with a market cap of more than $1 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.
Despite the promising outlook, Cresco shares are trading 50% below the 52-week high. We think this weakness is an opportunity to capitalize while most of the Street ignores the cannabis industry.
Cannabis Stock trades alerted its members of this awesome opportunity and sent out a trade signal for Cresco Labs on April 3. We closed that trade on July 7, securing a 50% gain in 12 weeks.
We’re still watching Cresco for our members and will add this holding back to our model portfolio when the time is right.
#2 Green Thumb Industries (GTI, GTBIF)
Green Thumb Industries (CSE: GTI, OTC: GTBIF) is another early leader in the U.S. cannabis 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 – it operates in 12 states, owns licenses for 96 retail locations, and operates 13 manufacturing facilities.
Last quarter, 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.
The impressive results have been driving a big rebound on the chart. Green Thumb has rebounded close to 300% from the 52-week low in March. Despite the big rebound, Green Thumb is trading 35% below the all-time high from September of 2018.
Looking forward, Green Thumb is in a position to continue climbing as we move closer to the November election.
#3 Curaleaf Holdings (CURL, CURLF)
Curaleaf Holdings (CSE: CURL, OTC: 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 cannabis 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 cannabis assets should drive huge revenue growth in the next few years – particularly because U.S. cannabis sales are expected to surge.
The acquisition has driven a big rebound on the chart. Shares are up almost 200% since hitting a 52-week low in March. Despite the rebound, Curaleaf still has plenty of potential for more gains.
Curaleaf is in a position to deliver strong revenue growth for the next few quarters and years, and that should drive shares higher.
The key to capitalizing on these three cannabis stocks will be properly timing your entry and then knowing when to capture projects. In life (and trading), timing is everything!
Cannabis Stock Trades Will Do the Hard Work for You
Let me say it again — despite the incredible opportunity, not all cannabis stocks will do well. In fact, the cannabis industry is loaded with questionable companies that will probably fail.
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Editor, Cannabis Stock Trades
Author Michael Vodicka owns shares of Cresco Labs (CRLBF), Green Thumb Industries (GTBIF) and Curaleaf Holdings (CURLF).
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Cannabis investors looking for the next big thing need to take a look at psychedelic stocks. Not only is the industry growing rapidly, but a promising young biotech, led by a Facebook billionaire, just filed to go public.
Hot on the heels of cannabis, psychedelic mushrooms are quickly gaining credibility for their medicinal value.
Researchers and users are discovering that psilocybin, the psychedelic compound found in “magic mushrooms,” can be a highly effective treatment for depression.