Both Michigan and Illinois have recently joined the list of U.S. states that have legalized recreational cannabis use. With growing Congressional support for federal legalization, many investors and analysts believe it is only a matter of time before related stocks start to rally again.
Curaleaf Holdings (OTC: CURLF) is one company that will benefit from the latest wave of legalization. While cannabis profits were down in the previous quarter, revenues have been steadily increasing for some of the leading companies. Curaleaf’s earnings were particularly impressive in the third quarter.
The company reported year over year revenue growth of 189% in November. Unlike many of its peers in the cannabis industry, it posted positive adjusted EBITDA of $9 million, compared to a loss of -$3.2 million in the same quarter last year.
Curaleaf is priced at a bargain today, and that will make it attractive for alternative investors. As a large scale producer, it has the potential to outpace many smaller manufacturers in the American market. Michigan legalized recreational cannabis eight days ago, and retail sales have exceeded $1.6 million since then. The U.S. legal cannabis market is primed for growth and serious returns.
With pot stocks having lost some ground in 2019, today’s pricing makes it a compelling time to buy.
- 1 Year Price Growth: 96%
- YTD Price Growth: 43%
- 3 Month Price Growth: -19.99%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.