Watching Top Cannabis Stocks In 2022 As The Sector Gains Momentum
This week the best marijuana stocks to watch in 2022 began showing an uptrend in the market. After establishing new lows to start the year most top cannabis stocks ended the day in the green. At the present time, the market saw a significant move in top Canadian marijuana stocks like Canopy Growth Corporation (NASDAQ: CGC) and Tilray Brands, Inc. (NASDAQ: TLRY). This is mostly because this is the only way for many investors to gain exposure to the cannabis industry.
In general, most Canadian LPs trade on the NASDAQ and NYSE while US marijuana stocks currently trade on the OTC Markets. This has kept US cannabis stocks from gaining exposure to the broader markets. In March many US cannabis companies have delivered strong 2021 revenue growth and expanded rapidly across the American market. Unfortunately, they are not able to trade on the big boards because of the current US federal cannabis policy.
This has kept them unexposed to large institutional investors and large pools of new retail investors that use platforms like Robinhood Markets, Inc. (NASDAQ: HOOD) and WeBull. Many of these investors are unable to trade stocks that are OTC Markets, so these pot stocks have not seen the gains the LPs experienced. But this could be an opportunity for cannabis investors to continue to establish positions in US marijuana stocks at these lower price points.
Best Pot Stocks To Watch In Q2 2022
Right now, you have a few possible catalysts for cannabis stocks as lawmakers begin new attempts to pass US federal marijuana legalization. Currently, the House has scheduled another vote to pass the MORE Act in 2022. In the Senate lawmakers unanimously approved the Cannabidiol and Marihuana Research Expansion Act. This bill will allow for the research and study of cannabis and encourage the FDA to develop cannabis-derived medicines. In addition, in April Senate Majority Leader Chuck Schumer is expected to formally introduce his cannabis reform bill which could also be another catalyst for pot stocks.
[Read More] The MORE Act Is On Its Way Back To The House
Until the top US marijuana stocks can see an uplisting to the major exchanges, they could continue to fall behind Canadian cannabis stocks as they see gains. At the present time, US MSOs are the largest revenue-producing cannabis companies in the world. Before investing in any company it’s important to do your own due diligence. Researching a company’s finances and press releases can help you find the best-performing businesses. Let’s look at 3 top US marijuana stocks for your watchlist for next week.
Best US Cannabis Stocks In 2022
- Trulieve Cannabis Corp. (OTC: TCNNF)
- Curaleaf Holdings, Inc. (OTC: CURLF)
- Cresco Labs Inc. (OTC: CRLBF)
Trulieve Cannabis Corp.
Trulieve Cannabis Corp. is a high-performing cannabis company with operations in 11 states and the greatest market share in Florida’s cannabis sector. On February 10th, the company inaugurated its 112th dispensary in the state. Harvest Health & Recreation Inc. was purchased, and by 2021, revenue is estimated to surpass $1.2 billion. The company is presently the industry leader in the United States, with 161 retail locations. In addition, the company has a 3.5 million square foot cultivation and processing capacity. Trulieve has been granted a Georgia manufacturing license, allowing it to expand its presence in the Southeast cannabis market. Additionally, the company opened its first dispensary in Massachusetts, laying the groundwork for future expansion. On February 15th the company acquired a 64,00 sq. ft. cultivation facility in Phoenix increasing its production capacity in the southwest hub.
Trulieve released Live Diamonds, a hydrocarbon extraction product that is the first of its kind in Florida, on January 10th. Trulieve’s third-quarter 2021 results were released in November, marking the company’s 15th straight profitable quarter. Over the previous year, the company’s net revenues climbed by 64% to $224.1 million. As a result, Trulieve earned $153.9 million in gross profit, with a gross margin of 68.7%. The company’s adjusted EBITDA was $98 million, accounting for 43.7 percent of revenue. The corporation began its agricultural activities and launched its first dispensaries in West Virginia. The company will announce its fourth-quarter and full-year 2021 earnings on March 30th, before the bell.
TCNNF Stock Performance
TCNNF stock closed on March 25th at $20.63 up 3.15% in the past five trading days. Currently, the stock has a 52-week price range of $16.99-$48.70 and is down 20.69% year to date. According to analysts at CNN Business TCNNF stock has a 12-month average price target of $55.53 per share. In this case, this represents an upside of 169.18% from its last trading price of $20.63.
Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc., a multi-state cannabis retailer with 128 retail locations in the United States, produces packaged cannabis products. Additionally, Curaleaf International’s Adven GmbH, a wholly-owned subsidiary, has begun selling medicinal cannabis products in Germany. In the United States, Curaleaf’s Select brand is one of the most well-known. After buying Tryke Companies in November, Curaleaf expanded its operations to three additional states. The corporation presently has properties in Arizona, Nevada, and Utah in its portfolio. The company inaugurated its 45th site in Florida on March 14th.
Curaleaf reported $1.2 billion in fourth-quarter and fiscal-year 2021 sales, up 93 percent from the previous year. In addition, the company achieved $320 million in sales and $80 million in adjusted EBITDA in the fourth quarter. The corporation opened eight new retail stores in the fourth quarter of 2021, resulting in gross profit sales of $159 million. Los Suenos Farms was also bought, bringing the total cultivation capacity of the company to 4.4 million square miles. Neil Davidson was named temporary CFO on March 14th, while the business hunts for a permanent successor.
CURLF Stock Performance
On March 25th, CURLF shares closed at $6.73, up 3.86% for that trading day. The stock is currently trading in a 52-week range of $5.35-$15.90 and is down 25.22% year to date. According to analysts at Tip Ranks CURLF stock has a 12-month average price target of $14.91 per share. In this case, this would represent an upside of 121.55% from its last trading price of $6.73.
Cresco Labs Inc.
Cresco Labs is a cannabis startup with a vertically integrated business plan established in the United States. In the United States, the company is now the leading maker of branded cannabis products. According to a recent BDSA report, Cresco is the most preferred marijuana brand in Illinois and Pennsylvania. Cresco has 50 retail locations, 20 manufacturing facilities, and 47 retail licenses throughout 11 states. As part of its expansion strategy, Sunnyside has opened its fourth dispensary in Pennsylvania. According to the company, the Good News product line will be expanded to include new consumables and vaping alternatives. In California, the company will migrate to owned brand distribution to increase profitability and eliminate third-party distribution. On February 7th the company opened its first location in Miami Dade, Florida, and has an upcoming Lady Lake store opening in the US.
The corporation announced record fourth-quarter and full-year 2021 earnings on March 23rd. Cresco recorded record sales of $822 million in the fiscal year 2021, up 73 percent year over year. In addition, gross profit excluding purchased inventory was $430 million, up 219 percent from the previous year, and Adjusted EBITDA was $194 million, up 219 percent. In the fourth quarter, the company generated $218 million in revenue and $57 million in adjusted EBITDA. The company generated $101 million in wholesale revenue and maintained its lead in branded cannabis product sales in the United States, including flower, concentrates, and vape cartridges. Cresco also announced it would acquire Columbia Care Inc. (OTC: CCHWF) and become the new leader in cannabis raising its total enterprise value to $2 billion. The deal is expected to be complete in Q4 2022.
CRLBF Stock Performance
CRLBF shares finished on March 25th at $6.02, up 3.44% for the trading day. The stock is presently trading in a 52-week price range of $5.16-$13.65, showing a 9.65 percent decline year to date. According to analysts at Tip Ranks CRLBF stock has a 12-month median price target of $10.77 per share. In this case, this represents an upside of 71.26% from its last trading price of $6.02.