U.S. cannabis sales are on fire and it seems like the media is barely paying attention. This is a mistake because the U.S. cannabis industry is maturing quickly and moving into a new, important phase of growth.
States all across the U.S. reported record sales.
Illinois: May sales hit $44 million, putting the state on pace to hit $1 billion in sales in the next 12 months.
Oregon: May cannabis sales increased 40.2% from last May to $103 million, with home delivery sales jumping 409%. Sales have reached $415 million for the year.
These are just a couple of examples. The story is the same in almost every other state. Florida’s cannabis market is booming, Massachusetts is booming, Michigan is booming, Oklahoma is booming.
Looking forward, I see more growth because of a powerful catalyst directly on the horizon.
2020 Election is a Big Catalyst for Cannabis
As many as 15 states could be voting to legalize medical or recreational cannabis – the single largest legalization event in the history of the industry.
New York, Arizona, and New Jersey take recreational cannabis to the ballot box. Nebraska gets their say on medical cannabis.
This reminds me of 2016 when 9 U.S. states voted to legalize cannabis, including California, Maine, Nevada, and Massachusetts.
That event sent cannabis stocks soaring. The MJIC North American cannabis stock index surged into a new all-time high in the second half of 2016 and then surged into another new all-time high in the second half of 2017.
This is the reason that U.S. cannabis sales are expected to continue exploding higher in the next three years.
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 2023, according to exclusive projections from the latest Factbook, which was released Monday at MJBizConNEXT Direct.
In the meantime, cannabis stocks are coming off a terrible year in 2019. Early industry leaders are trading at record bargain prices.
2 Early Cannabis Leaders That are On Sale
Green Thumb Industries (CSE: GTII, OTC: GTBIF) is one of the largest cannabis companies in the U.S. with a market cap of $2.1 billion.
Green Thumb has been reporting record revenue. They are the first U.S. company to report more than $100 million in sales in one quarter. However, shares are down 58% from the all-time high from September of 2018. This looks like a great opportunity to check out a high-growth company while shares are temporarily out of favor.
Curaleaf Holdings (CSE: CULR, OTC: CURLF) is also a massive U.S. cannabis company with a market cap of $3 billion. Despite a record quarterly revenue of its own and a recent rebound, Curaleaf is down more than 50% from the all-time high from September of 2018.
The Big Picture
The U.S. cannabis industry is quietly booming. The broader media isn’t paying attention and many investors have written the sector off after big losses in 2019.
This is a mistake. Sales are hitting record highs right now despite the U.S. being in a recession and looking forward, up to 15 US states could be voting to legalize in November. This looks like a great setup to send the sector soaring in the next few months.
Michael Vodicka owns shares of Green Thumb Industries (GTBIF) and Curaleaf Holdings (CURLF).
About the Author & Cannabis Stock Trades
Michael Vodicka is an equity analyst with more than 20 years of experience trading and investing. His research has been featured in some of the industry’s most respected publications. He has been investing and leading investors in the cannabis sector since 2013.