Furthermore, the global cannabis market is expected to reach substantial figures, with the U.S. market alone projected to hit $38.4 billion by the end of the year. This growth is fueled by the introduction of new products, including edibles and vapes, and a trend towards personalized cannabis experiences. Additionally, technological innovations, such as AI and blockchain, are set to revolutionize production and supply chain management for industry. This forms my backdrop for cannabis stocks to buy.
As more states in the U.S. move towards legalization, the industry faces both opportunities and challenges. The push for federal legalization continues, though it remains uncertain. States like New York and Maryland are finalizing new programs, contributing to market expansion. Internationally, countries such as Germany are also playing a significant role in shaping the global cannabis landscape.
Therefore, this sets the stage for three companies that I believe are great picks that investors should have high hopes for.
Curaleaf (CURLF)
Curaleaf (OTCMKTS:CURLF) is a leading international provider of consumer cannabis products.
For the full year 2023, Curaleaf’s revenue was $1.37 billion, a 2.62% increase compared to 2022. The company achieved a Q4 of 2023 revenue of $345.3 million, a 4% increase from the previous quarter. Curaleaf’s adjusted gross profit margin for Q4 of 2023 was 48%, up 120 basis points from Q3 of 2023.
In Q1 of 2024, Curaleaf reported a gross profit of $160.9 million, up from $156.2 million in Q4 of 2023. Adjusted EBITDA for Q1 of 2024 was $77 million, representing 23% of revenue, slightly improving year-over-year (YOY). The company aims for mid-single-digit top-line growth and a mid-20% adjusted EBITDA margin for 2024. Additionally, analysts forecast a 62.34% upside potential, with a consensus price target of $6.25 €‹.
Moreover, Curaleaf is expanding its product line to include hemp-derived THC edibles and beverages. It is also increasing its presence in international markets, focusing on the UK, Germany and Poland. These initiatives are expected to bolster revenue growth and market share €‹.
Green Thumb Industries (GTBIF)
Green Thumb Industries (OTCMKTS:GTBIF) is a national cannabis consumer packaged goods company and retailer. The company sells products in various retail outlets and its own chain of Rise dispensaries.
Green Thumb Industries reported strong financial results for the first quarter of 2024, with total revenue reaching $275.8 million, marking an 11% increase from the prior year. GTBIF reported a robust gross profit of $144.9 million, representing 52.5% of revenue, up from 50.2% in the first quarter of 2023.
Also, adjusted EBITDA for the first quarter was $90.5 million, constituting 32.8% of revenue, compared to $76.2 million or 30.7% of revenue in Q1 of 2023. The company maintained strong liquidity with $223.9 million in cash and cash equivalents as of March 31, 2024, and total current assets of $419.7 million
In addition, Green Thumb is expanding its retail footprint and enhancing its product offerings. Also, the company is focusing on increasing brand awareness and customer loyalty through marketing initiatives and strategic partnerships.
Trulieve Cannabis (TCNNF)
Trulieve Cannabis (OTCMKTS:TCNNF) is a leading multi-state operator in the U.S. cannabis industry.
TCNNF announced the opening of new medical cannabis dispensaries in Madison and Panama City, Florida, with grand opening celebrations scheduled for July 5th. The dispensaries will offer its high-quality products and customer service, including walk-in and express pickup options.
Furthemore, TCNNF had a great Q1 this year, with revenue reaching $298 million, a 4% increase sequentially from the previous quarter and a YOY rise. The company achieved a robust gross margin of 58%, translating to a gross profit of $174 million. Despite a reported net loss of $23 million, this marked a significant improvement both sequentially and YOY.
Operational highlights included the opening of three new dispensaries in Florida and continued expansion efforts, with 31% of retail locations now outside the state. The company’s cash flow remained robust, generating $139 million from operations and $124 million in free cash flow during the quarter. This bolstered its financial position with cash reserves totaling $327 million by quarter-end.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.