- Cresco Labs: Cresco Labs, a multi-state operator in the cannabis industry, stands out for its disciplined growth strategy. Unlike some competitors, it prioritizes select markets and maintains financial stability. Despite a recent merger falling through, this lean approach positions it well with 69 retail locations across nine markets, including key states with substantial sales potential. Cresco Labs reports operating profits and generates around $200 million in quarterly revenue, making it an attractive pot stock with a price-to-sales ratio of less than one.
- Curaleaf Holdings: Curaleaf Holdings boasts a significant presence in the cannabis market with over 150 retail locations spanning 19 states. Despite industry challenges, it has sustained growth, with Q2 revenue reaching $339 million, a 4% increase from the previous year. Curaleaf also eyes expansion into European markets, particularly Germany, offering investors broader growth opportunities. Trading at two times its trailing revenue, it remains a reasonably priced option for those seeking growth potential.
- Green Thumb Industries: Green Thumb Industries presents a blend of characteristics, combining aspects of Curaleaf and Cresco Labs. Operating in 15 states with 80 retail stores, the company offers multiple brands catering to diverse customer segments. Notably, it consistently reports positive margins and profitability, a rarity in the cannabis industry. In the last quarter, it achieved a net income of $13.4 million on $252.4 million in revenue. Although relatively more expensive at about 2.2 times revenue, it stands as a top multi-state operator with a balanced focus on growth and profitability.
The recent rise in the value of cannabis stocks is attributed to the potential cannabis reform on the horizon. This development has drawn attention to pot stocks, making it an opportune time to place significant investments in pot stocks. The following are three promising cannabis stocks you may want to consider:
1. Cresco Labs
Known for its strategic approach to growth, Cresco Labs is a multi-state operator (MSO) with a focus on select markets. Despite a recent merger falling through, this lean strategy positions it well in the industry. It boasts a presence in key markets, with around 69 retail locations across nine markets, including states with substantial sales potential. Cresco Labs typically reports operating profits, and its strong presence, nearly $200 million in quarterly revenue, and a low price-to-sales ratio make it an attractive choice.
2. Curaleaf Holdings
Offering sheer growth potential, Curaleaf Holdings operates over 150 retail locations in 19 states, providing access to numerous growth opportunities. Despite industry challenges, it recorded $339 million in revenue for the three months ending June 30, signaling positive growth. The company is also expanding into European markets, particularly Germany, further broadening its potential. Trading at two times its trailing revenue, it remains a reasonably priced option.
3. Green Thumb Industries
Combining growth and profitability, Green Thumb Industries operates in 15 states with 80 retail stores. The company’s multiple brands cater to various customer segments and consistently generate strong margins. Uncommon in the cannabis industry, it regularly reports both operating profits and positive net income. This balance between growth and profitability positions it as a noteworthy choice for cannabis investors, albeit at a slightly higher price-to-revenue ratio compared to others on the list.
