On January 1, 2020, recreational marijuana in Illinois will be officially legalized. It is expected that the Illinois market could reach a total value of $4 billion in the coming years. Total legal marijuana sales are expected to reach $16 billion in the U.S. by the end of next year.
All of this matters to investors, especially when there are bargain stocks like Green Thumb Industries (OTC: GTBIF) to consider.
Marijuana stocks were hammered in 2019. Earnings were lower than expected, and many stocks were already overvalued. This could change in 2020 thanks to the continued trend of legalized recreational use at state levels. Green Thumb has already made strategic moves to capitalize on Illinois legislation. It will have three recreational outlets ready to open on January 1, with seven more following in the first quarter. In total, the company has 34 operating retail stores. Its medical marijuana stores could potentially be converted to recreational or dual-purpose outlets.
The average analyst rating for Green Thumb stock is a BUY today. Analysts are upbeat about the potential in Illinois and believe that stocks can recover from the losses this year. There’s an average target price of $17.05 on this pick, which hints at a significant upside for bargain investors.
- 1 Year Price Growth: 58%
- YTD Price Growth: -1.13%
- 3 Month Price Growth: -20.84%
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.