The Election Is a Huge Catalyst for Cannabis Stocks
and the Biggest Event for the Sector Since 2016
The date is November 7, 2016. The U.S. presidential election includes a historic moment for the cannabis industry – when a record eight states voted to legalize medical or recreational cannabis.
It was one of the biggest victories in the history of the U.S. cannabis industry, and it sent cannabis stocks soaring for the next two years.
For example, take Innovative Industrial Properties (NYSE: IIPR), a real estate investment trust (REIT) headquartered in San Diego, California.
IIPR is one of the largest cannabis companies in the country, with a market cap of more than $2 billion. The company owns and leases cannabis greenhouses to some of the largest cannabis growers in the country.
With the U.S. cannabis industry growing by leaps and bounds, shares jumped more than 200% from early 2017 to the end of 2018.
IIPR was one of the best performing U.S. cannabis stocks during this time. Cannabis Stock Trades alerted its members to this opportunity with a trade signal emailed on the morning of December 15, 2017. Since then, shares of IIPR have risen 256%.
While IIPR and CST members prospered, many other cannabis stocks plummeted. Only the investors that were able to spot opportunities like IIPR and avoid other cannabis pitfalls were able to cash in on the sector.
Investors looking to jump on the explosive cannabis sector have another chance with the 2020 presidential election drawing near.
Up To 7 U.S. States Could be Voting to Legalize in November
November 3, 2020, is setting up to be a huge day for the U.S. cannabis industry. Up to seven states will be voting to legalize medical or recreational cannabis.
- New Jersey
- South Dakota
35 U.S. states have already voted to legalize medical or recreational cannabis.
With the potential for seven more U.S. states to legalize, the cannabis industry is predicted to surge in the next four years.
The Marijuana Business Factbook, a leading industry think tank, predicts that cannabis sales will grow to $15 billion in 2020, up 40% from 2019. Marijuana Business Factbook goes on to predict that total U.S. sales could hit $37 billion by 2024.
Many Cannabis Stocks are Trading 50% Below Their 52-Week High
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.
3 Cannabis Stocks To Consider Before 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
Author Michael Vodicka owns shares of Cresco Labs (CRLBF), Green Thumb Industries (GTBIF) and Curaleaf Holdings (CURLF).