3 Cannabis Stocks To Buy [Or Avoid] In The Stock Market Today
It’s no surprise that cannabis stocks have peaked a lot of investor interest in the stock market today. This is largely because of the potential growth in the industry. According to Arcview Market Research and BDS Analytics, the legal cannabis market is estimated to grow to $73 billion by 2027. This rapid growth is due to more countries legalizing cannabis, as well as the ongoing de-stigmatization of cannabis use.
Additionally, the global pandemic has led to an increase in sales of cannabis products as people look for alternatives to traditional tobacco products. While there are no guarantees in the stock market, the potential for substantial profits has made cannabis stocks an attractive option for many investors. With that, let’s take a look at three cannabis stocks to watch in the stock market today.
Cannabis Stocks To Watch Today
- Curaleaf Holdings Inc (OTCMKTS: CURLF)
- Trulieve Cannabis Corp (OTCMKTS: TCNNF)
- Green Thumb Industries Inc (OTCMKTS: GTBIF)
Curaleaf Holdings Inc (CURLF Stock)
First up, Curaleaf is an international provider of consumer products in cannabis. Its mission is to improve lives by providing clarity around cannabis and confidence around consumption. For a sense of scale, in the United States, Curaleaf currently operates in 22 states with 136 dispensaries. The company also employs over 5,700 team members. Currently, Curaleaf is the largest vertically integrated cannabis company in Europe.
In August, the company reported its second quarter 2022 results. Curaleaf posted revenue of $338 million for the quarter. Versus $312 million during Q2 in 2021. million on a year-over-year basis. Curaleaf reported its revenue growth was fueled by new retail store openings and the commencement of adult use in New Jersey. Aside from that, the gross profit margin increased to 51.9% from 49.6% in the second quarter of 2021. With that, shares of CURLF are trading at $5.79 per share on Friday morning.
Matt Darin, Chief Executive Officer of Curaleaf, stated, “In the second quarter we made key adjustments and some bold decisions to focus on operational excellence, innovative products and brands, and leadership talent, and we are already seeing positive results as demonstrated by a 267 bps improvement in gross margin on cannabis sales. This quarter we continued to grow our retail footprint, expand our distribution partnerships and launch innovative new product lines that excite consumers and invigorate the industry.“
Trulieve Cannabis Corp (TCNNF Stock)
Next up, Trulieve Cannabis Corp is a leading provider of medical cannabis in the United States. In brief, Trulieve is a vertically integrated company. That means Trulieve is involved in every step of the process from seed to sale. Just this month the company released its second quarter 2022 results.
In the report, Trulieve notched in $320.3 million for the quarter, reflecting a 49% increase year-over-year. Furthermore, the company completed the quarter with operations in 11 states, while producing over 10 million finished goods units in Q2, a 79% increase year over year. “Our team delivered strong second-quarter results with topline growth and margin improvement by staying focused on our plan,” stated Kim Rivers, Trulieve CEO. “During our mid-year strategic review, we identified proactive measures to address the rapidly evolving economic landscape.” As of Friday morning, shares of TCNNF are trading at $12.91 per share.
Green Thumb Industries Inc. (GTBIF Stock)
Lastly, Green Thumb Industries. For a sense of scale, Green Thumb has 17 manufacturing facilities, 77 retail locations, and operations across 15 U.S. markets. Meanwhile, the company employs approximately 4,000 people. Similar to other companies mentioned above, GTBIF reported its second-quarter results earlier this month.
In detail, Green Thumb reported revenue of $254.3 million, representing 14.6% on a year-over-year basis. In addition, the First half of 2022 revenue advanced 19.4% to $496.9 million compared to the first half of 2021. What’s more, this is the eighth straight quarter of positive GAAP net income for the company. The company contributed its growth this quarter largely to increased retail sales in New Jersey and Illinois. Shares of GTBIF are up over 11% in the last month of trading and currently trades at $11.02 on Friday morning.
“We are pleased with our second quarter results, especially in this challenging economic environment. Five percent revenue growth and greater than 300 basis point improvement in Adjusted EBITDA margins over the previous quarter demonstrate the results of our focus. We continue to maintain a strong balance sheet, which gives us ample flexibility to support our growth initiatives,” said Green Thumb Founder, Chairman, and Chief Executive Officer Ben Kovler.