In the wake of voters approving the medicinal and adult-use of marijuana in 6 states, cannabis stocks have seen a noticeable rise recently. At least one-third of Americans can now access cannabis for either medicinal or recreational use.
New ballot measures approved
On Election Day last week, the states of Arizona, Montana, New Jersey, and South Dakota approved their ballot measures. This legalized the use of marijuana for adults aged 21 years and older.
Similarly, voters in Mississippi and South Dakota also approved the use of medical marijuana. This brings to 36 the number of states that currently allow the use of medical marijuana in the US. Additionally, two territories – Puerto Rico and the U.S. Virgin Islands, allow the use of medical cannabis.
With these recent developments in mind, let’s look at the best cannabis stocks to watch this final lapse of 2020.
TerrAscend Corp. (TRSSF)
This New York and Toronto-based cannabis operator is a good buy for investors looking for a cannabis portfolio. The company also has a 140,000-square foot growing facility with post-harvest manufacturing capabilities.
Recently, it announced a 25% expansion plan at its Pennsylvania facility to match the growing demand.
“TerrAscend is an interesting investment proposition due to its seasoned management team, strong balance sheet, and vertically integrated operations,” says Aaron Raub, a senior equity analyst at Ambria Capital.
Trulieve Cannabis Corp. (TCNNF)
Trulieve currently commands more than 50% of the market share in Florida. Besides, it’s expanding rapidly. In the first two quarters of 2020, the company reported $216.9 million in revenue. It also added 15 new locations, bringing its outlets to 60.
According to Trulieve CEO Kim Rivers, the company is mulling the possibility of opening locations in new markets once regulations are finalized.
“There has been a lot of positive movement both at the state and federal level toward reforming cannabis laws, and legislation such as the SAFE Banking Act, the STATES Act, and the MORE Act could unlock additional potential in the market,” says Kim.
Curaleaf Holdings (CURLF)
Based in Wakefield, Massachusetts, Curaleaf recently announced its plans to “divest its cultivation and manufacturing facility in Frederick, Maryland to TerrAscend for a cash price of $25 million and another $2.5 million note that yields 5%, maturing in April 2022.
Curaleaf currently owns 93 dispensaries in 23 states. It also commands 23 cultivation sites and more than 30 processing sites.
Cresco Labs (CRLBF)
Based in Chicago, Cresco Labs is a multistate cannabis operator. Its shares are trading at a discount compared to its competitors in other states. The company is likely to target the growth in Michigan, Massachusetts, and Ohio because it has about “$50 million in tenant improvement to deploy,” according to Jason Spatafora, the founder of marijuanastocks.com.
Cresco Labs currently operates in 9 states, with 15 production facilities. It owns 29 retail licenses and 19 dispensaries.
In addition to these four cannabis firms, investors should also monitor cannabis stocks of Green Thumb Industries (GTBIF) and Innovative Industrial Properties (IIPR), as they equally show significant growth.