The marijuana industry has experienced significant growth and transformation over the past decade, evolving from a primarily underground market to an emerging global industry with a broadening acceptance and increasing legalization efforts. This sector encompasses a range of businesses, from cultivation and distribution to the development of cannabis-based pharmaceuticals. The industry’s potential, both medicinally and recreationally, is vast, with many touting cannabis as the next big frontier in consumer products and healthcare solutions.
Recent news has further invigorated the optimism surrounding marijuana stocks. Shares of several cannabis companies surged following a recommendation from the Department of Health and Human Services to reschedule marijuana. Presently, cannabis shares the same federal classification as potent and often dangerous drugs such as heroin and ecstasy. This recommendation to categorize marijuana as a lower-risk drug could potentially pave the way for more extensive medical research, broader legalization, and increased institutional investment.
For investors, the marijuana sector offers a dynamic, albeit volatile, landscape. The prospect of more lenient federal regulations can boost market sentiment and unlock more significant opportunities for marijuana-based businesses. However, investing in marijuana stocks requires careful consideration of the unique regulatory risks, market maturity in various regions, and the capacity of individual companies to adapt and thrive in this fast-evolving industry. Considering this, here are two trending marijuana stocks to watch in the stock market now.
Marijuana Stocks To Buy [Or Avoid] Now
Curaleaf Holdings (CURLF Stock)
Starting off, Curaleaf Holdings Inc. (CURLF) is a vertically integrated cannabis company in the United States. The company offers a broad spectrum of products and services that cater to both the medicinal and recreational user segments. With its operational presence spanning multiple states, Curaleaf has successfully positioned itself as a prominent player in the U.S. cannabis industry.
At the beginning of August, Curaleaf reported its second quarter 2023 financial results. In detail, the company announced Q2 2023 revenue of $339 million, which is a 4% increase year-over-year. Additionally, Curaleaf notched in gross profit of $146.5 million and gross margins of 43%. Moreover, Boris Jordan, Executive Chairman of Curaleaf, commented, “Our second quarter revenue grew 4% year over year to $339 million, adjusted gross margin was 44% and adjusted EBITDA was 21%. We ended the second quarter with $85 million in cash on the balance sheet and generated $37 million in year-to-date cash flow from continuing operations.”
In the last month of trading action, shares of CURLF stock have jumped by 10.34%. Meanwhile, as of this past Friday’s closing bell, Curaleaf stock is trading at $3.84 a share.
Trulieve Cannabis (TCNNF Stock)
Next, Trulieve Cannabis Corp (TCNNF) is a vertically integrated cannabis company and multi-state operator in the U.S. The company currently has market positions in Arizona, Florida, and Pennsylvania.
Last month, Trulieve also reported its second quarter 2023 financial results. Diving in, the company posted Q2 2023 revenue of $282 million, with 96% of it coming from retail sales. With that, Trulieve also reported that it sold 11.6 million units of branded product, which represents a 9% increase sequentially. “Demand for legal cannabis remains strong and Trulieve sells the highest volume of branded product through branded retail in the U.S.,” stated Kim Rivers, Trulieve CEO.
Moreover, in the last month of trading, shares of Trulieve are up 42.06%. Additionally, as of this past Friday’s closing bell, TCNNF stock is trading at $5.78 a share.