Let’s say you can’t stand weed. That’s okay! As an investor, however, don’t let that sway you from an industry that can breeze through growth and development during a pandemic and inflation. A sentiment I like is that it’s an example of popular culture catching up with science. What we were once taught would drive us insane is now used as a medication that treats a variety of physical and mental ailments. It’s also a recreational pastime that’s finally recognized as a safe alternative to drinking alcohol. Human sentiment is probably more important in economics than we realize.
Through the results of the 2022 midterm elections, two additional U.S. states voted for it, totaling twenty-one. That number will grow. Cannabis sales in the U.S. are expected to increase by over 20% to hit $33 billion as it wraps up fiscal 2022, as opposed to $3 billion in 2015. Sheesh. By 2026, legal cannabis sales should increase by another 60% to $53 billion. By 2030, forecasts say global legal marijuana sales should surpass $130 billion. These are speculative figures with how quickly progress is being made on legalization. Even Chuck Schumer has been pushing Congress, and President Biden is anticipated to exercise his legislation in December to pardon those wrongfully imprisoned.
Moving on, I’ll break down three stocks from the cannabis market that show extraordinary potential, and from a long-term perspective, experts agree that these stocks are bargains:
Trulieve Cannabis Corp (TCNNF)
Trulieve Cannabis Corp (TCNNF) cultivates and manufactures cannabis goods and distributes them through its branded retailers. Under Cultivar Collection and Modern Flower, TCNNF manufactures flower, edibles, vapes, topicals, concentrates, and nasal sprays. TCNNF operates 170+ dispensaries in Florida, Pennsylvania, Arizona, Maryland, and California. TCNNF also operates cultivation and processing facilities in Arizona, Maryland, Colorado, and Nevada. In September 2018, Schyan Exploration Inc., founded in 1940, changed its name to Trulieve (TCNNF), headquartered in Quincy, Florida.
Although its stock is down for the year, the upside potential outweighs it. In Q3, TCNNF reported $300 million in revenue, representing 34.23% year-over-year growth. In 2021, TCNNF’s revenue had grown by nearly 80%, and although the numbers vary, there is more apparent growth to be seen– for instance, it’s projected by Wall Street that TCNNF’s earnings will increase by 96.5% per year. TCNNF’s business scale is– well, against other MSOs (Multi-State Operators), it has the most extensive retail presence, greatly helping its case as an industry leader. According to analysts who work out 12-month pricing estimates, TCNNF has a consensus median price target of 26.24, with a high of 51.00 and a low of 13.57. This is a 102.48% increase over current pricing, giving TCNNF validation on its already hard-to-resist buy rating.
Green Thumb Industries Inc (GTBIF)
Green Thumb Industries Inc. (GTBIF) manufactures, distributes, and sells cannabis products in the U.S. for medicinal and recreational use. Under the Doctor Solomon’s, Dogwalkers, Incredibles, Good Green, and RHYTHM brands, it sells flower and processed and packaged items: pre-rolls, extracts, tinctures, edibles, topicals, vapes, and related products. GTBIF primarily distributes its products to third-party retail outlets, but it also sells finished items directly to customers through its own retail locations. GTBIF was established in 2014 and is based in Chicago, Illinois.
GTBIF ranked third among U.S. MSOs in revenue in the most recent quarter. With 77 dispensaries spread over 15 states, GTBIF is the only one in the group to have positive net income for nine consecutive quarters. The firm reported sales of $261 million for the third quarter, up 12% year over year and 3% sequentially. It is in near contrast to the $24.7 million GTBIF reported for the second quarter and the $21.5 million it had at the same time last year. Evidence shows we can expect future growth, but I’ll point out something more: With the stock down by 41% year-to-date, it has a market cap of over $3 billion, and it has brought in $1 billion in revenue over the last twelve months. Thanks to the analysts who offer annual price projections, GTBIF has a consensus median price target of 19.50, with a high of 36.00 and a low of 15.08. This marks a 50% increase from the most recent price, and with more GTBIF locations on the way and continuing growth, it’s hard to say no to the buy rating.
Cresco Labs Inc (CRLBF)
Cresco Labs Inc. (CRLBF) grows, produces, and sells retail and medicinal cannabis in the U.S. It sells cannabis through various brands and products: Cresco sells flower, live resin, and extracts; High Supply sells vape carts, pens, shake, popcorn, and pre-rolls; Good News offers sells vapes and gummies; Wonder Wellness Co. is known for edibles; Remedi sells capsules, salves, and sublingual oils; Also in CRLBF’s catalog are chocolate and toffee confections, citrus gummies, pastries, and taffy via the Mindy’s Edibles brand. It also licenses the brand Kiva, which manufactures cannabis-infused edibles such as chocolates, tarts, gummies, and mints. CRLBF was established in 2013 and is based in Chicago, Illinois.
To me, CRLBF will most likely be the weed stock bargain of 2023, and with its stock being down by 50% year-to-date, it’s a bargain right now. CRLBF is flying in an under-the-radar way, and it deserves more attention. For instance, something interesting to me is that CRLBF has an average daily volume of around 477,000, recently going up as high as 800K+ for several days in a row, not to mention in positive territory. Meanwhile, TCNNF is considered a giant in the industry, yet it has an average volume of 297,542. This makes CRLBF popular, and if that doesn’t convince, then maybe Sean “Diddy” Combs can. CRLBF is acquiring Columbia Care. From there, CRLBF will sell its Illinois and New York assets to Diddy, tagged at $185 million. Another consideration is the plethora of rave reviews of CRLBF’s products. In terms of quality, their cannabis variations are “top-shelf.” According to the analysts who provide annual pricing estimates, CRLBF has a consensus median price target of 6.74, with a high of 15.00 and a low of 3.27. The price estimate represents a massive 106.16% increase from the current price. If I had to pick one, this would be it. CRLBF is a pot stock whose buy rating deserves a serious look. The cost likely won’t ever be this low again, as it’s projected to expand to being a leader in many of the top markets.
Read Next: America is going mad—is this next?
America is definitely going a little mad…
Some states are threatening to break away. The rich are fleeing. The wealth gap is soaring.
According to a recent article in the New York Times, people are driving more recklessly than ever… and drinking more alcohol than ever too.
And that’s just the beginning…
Altercations on airplanes are now at all-time highs. So are murder rates. And violent crime is soaring across the board. Students are more disruptive than ever. Hate crimes have hit a 12-year high, according to the FBI.
The question of course is:
Where is this all headed… and what’s coming next?
Well, one of the wealthiest and most successful entrepreneurs in America has a very clear answer you’re unlikely to hear anywhere else…
Bill Bonner is a 73-year-old son of a tobacco farmer, who now owns six large properties in South America, Central America, and the U.S… plus three in Europe.
Bonner is also one of the most humble and thoughtful men in the world today. He’s the author of three New York Times bestsellers… and has built several homes with his own hands, using ancient building techniques.
I’m telling you about Bonner today because has just come forward with an important message…
What he calls: His 4th and Final Warning.
It’s worth paying attention to, because Bonner has made 3 other big macro-economic predictions in his career… and each one proved to be exactly right.
Today, Bonner says we are headed towards a very difficult period in the U.S.… one of our most difficult times ever… which will result in something he calls: “America’s Nightmare Winter.”
What does that mean, exactly—and how could it affect you and your money?
Bonner doesn’t claim to have all the answers–but he recently went public with the fascinating analysis, recorded at his 60-acre property overlooking one of Europe’s most beautiful rivers.
He says:
“I believe it falls on someone like me to warn people… clearly… and without distraction.
“I can do this now because I’m too rich to care about money… and too old to care about what anyone says about me.”
And in this analysis, Bonner explains exactly how he believes this difficult period will play out, and even more important: The 4 Steps every American should take right now to prepare.
Get the facts.
Learn how to protect yourself and get a peek inside Bonner’s spectacular European property.
We’ve posted Bonner’s full analysis and his 4 recommended steps on our website.
You can view it free of charge here…
