Volume in cannabis stock trading has lagged the market over the last year, but 2020 could see a turnaround. Increasing support for legalization and growing revenues in the medical cannabis sector will benefit some key stocks. Trulieve Cannabis Corp. (OTC: TCNNF) is priced at a bargain today, and there are strong signals suggesting that it will grow throughout the course of the year.
Trulieve operates in the Florida market as a fully integrated medical cannabis company. It cultivates its own product and sells to medical consumers through branded stores. It also offers a home delivery service for people with medical conditions that prevent them from shopping in-store.
Revenue growth since going public has been impressive. The company reported $213,505 in revenue for the 2016 fiscal year. By the end of the 2018 fiscal year, that figure had increased to $133.27 million. The gross profit margin is moderate at 18.34%.
In 2020, it is expected that revenue will reach as high as $400 million. This will help to strengthen the company and its stock. Revenue could grow even more in the following years, thanks to an active movement in Florida to legalize recreational marijuana at the state level.
A total of nine analysts recorded by FactSet recommend a BUY rating on this stock. With an average target price of $20.16, there’s potential growth for those who invest at today’s bargain price.
- 1 Year Price Growth: -13.64%
- YTD Price Growth: -12.53%
- 3 Month Price Growth: 54%
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