2023-03-25 14:00:33 ET
Best Cannabis Stocks For 2023
Do you plan to buy top US marijuana stocks in 2023? In 2023, it’s projected that the US cannabis market will expand further. There will probably be more cannabis businesses operating in the US as more states legalize cannabis for medical and recreational purposes. As competition intensifies, well-established companies will probably try to increase their market share, and fresh startups will appear to satisfy the rising demand for cannabis products.
As larger companies buy smaller ones to acquire their technology, patents, and expertise, the industry may also experience further consolidation. Additionally, the market might become more regulated, presenting opportunities and difficulties for cannabis companies. Nevertheless, it is anticipated that the US cannabis sector will expand over the next several years, propelled by shifting public perceptions, expanded legalization, and the prospect of substantial profits.
It is crucial to remember that the industry’s future could vary due to various variables, such as government policy and regulation adjustments, consumer tastes changes, and shifting market dynamics. The US cannabis market, according to Grand View Research, will be worth $ 10.8 billion in 2021 and will increase at a CAGR of 14.9% from 2022 to 2030. Investors might profit from the current market downturn by utilizing the sector’s broad recovery. These four US marijuana stocks could end up on your watchlist in 2023.
[Read More] 3 Marijuana Stocks To Buy Before The Final Bell?
Top US Marijuana Stocks For April 2023
- Green Thumb Industries Inc. ( OTC: GTBIF )
- Trulieve Cannabis Corp. ( OTC: TCNNF )
- Curaleaf Holdings, Inc. ( OTC: CURLF )
- Cresco Labs Inc. ( OTC: CRLBF )
Green Thumb Industries Inc.
Green Thumb Industries Inc. is a key player in the American cannabis consumer packaged goods (CPG) business. Currently, Green Thumb runs 77 locations throughout 15 states. With more on the coming, GTI will soon have 111 retail licenses. In 2021, GTI will open a Cookies on the Las Vegas Strip in accordance with the terms of the first agreement with the privately held Cookies Brand. The launch of Green Thumb’s marijuana business in Virginia has been announced following the company’s successful acquisition of Dharma Pharmaceuticals. Via the acquisition of Leafline Industries, the company entered the Minnesota market. In April, the company revealed its 77th Rise site.
Recent Q4 and Full Year 2022 Results
At the end of February, Green Thumb revealed its results for the fourth quarter and the entire 2022 year. The total revenue for the fourth quarter of 2022 was $259.3 million, a 6.4% increase over the fourth quarter of 2021’s $243.6 million. Total revenue rose 13.9% to $1.0 billion for the entire 2022. The legalization of adult-use sales in New Jersey, which took effect on April 21, 2022, as well as revenue from acquisitions made throughout 2021, were the main drivers of revenue increase in the fourth quarter. In comparison to the fourth quarter of 2021, total retail revenue grew by 14.2%, and for the entire year 2022, it increased by 24.1%. On a base of 65 locations, fourth quarter 2022 comparable sales (stores open at least 12 months) gained 3.4% over the previous year.
Compared to the fourth quarter of 2021, when the gross profit was $128.6 million or 52.8% of revenue, the fourth quarter of 2022 saw a gross profit of $124.0 million, or 47.8% of revenue. Gross margin for the entire year was $504.0 million, or 49.5% of revenue, as opposed to $491.9 million, or 55.1% in 2021. In comparison to the prior year’s fourth-quarter net gain of $22.8 million, or $0.10 per basic and diluted share, the company’s fourth-quarter 2022 net loss was $51.2 million, or ($0.22) per basic and diluted share. During 2022, net income came to $12.0 million, or $0.05 per basic and diluted share.
GTBIF Stock Performance
On March 24 th, GTBIF shares finished at $7.85, down 7.86% in the trading month. Currently, the stock has a 52-week price range of $7.40-$19.51 and is down 9.14% year to date. According to analysts at CNN Business GTBIF stocks has a 12-month average price target of $15.44 per share. In this case, this would represent an increase of 96.66% from its last trading price of $7.85.
Trulieve Cannabis Corp.
Florida’s most significant market share belongs to Trulieve Cannabis Inc., a company with operations in eleven states. With 175 retail sites, the company dominates the cannabis market in America. Processing and expansion space for the business totals 4 million square feet. With the latest Georgia production license, Trulieve’s standing in the Southeast cannabis market has improved. The business started its first dispensary in Massachusetts, establishing the groundwork for future growth. In order to increase its capacity for production in the southwest, the business purchased a 64,00 square foot growing facility close to Phoenix in February. By completing the acquisition of Greenhouse Wellness West Virginia Dispensaries LLC in April, the company expanded its geographic reach into West Virginia.
The fourth quarter and record full-year 2022 results for Trulieve exceeded $1.2 billion in revenue. In particular, the business generated record quarterly revenue of $302 million and a sequential retail revenue increase of 2% in 2022, for $1.24 billion, up 32% year over year. As of December 31, 2022, the company’s U.S. retail network of 181 dispensaries—up 14% from 2021—held the industry’s top spot. This network is backed by more than 4 million square feet of processing and cultivation space.
Words From The CEO
“Trulieve has grown to surpass $1.2 billion in revenue in less than seven years, a notable milestone and a testament to the agility of our team. Our success is the culmination of thoughtful intention, superb execution, and best in class capabilities for rapid growth. With increasing mainstream support and meaningful regulatory reform on the horizon, tremendous growth opportunities lie ahead for U.S. legal cannabis. In 2023, we are laser focused on cash generation while investing to build a sustainable company designed to thrive in an integrated commerce environment.”
Kim Rivers, Trulieve CEO
TCNNF Stock Performance
TCNNF stock closed on March 24 th at $5.73, down 7.58% in the last month of trading. Also, the stock has a 52-week price range of $5.56-$21.99 and is down 24.31% year to date. According to analysts at Tip Ranks, TCNNF stock has a 12-month average price target of $15.95 per share. In this case, this represents an upside of 178.41% from its last trading price of $5.73.
Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc., a multi-state cannabis merchant with 148 retail locations in the United States, manufactures packaged cannabis products. Today, Curaleaf International’s wholly-owned subsidiary Adven GmbH promotes medicinal marijuana products in Germany. Curaleaf’s Select is one of the most well-known brands in the nation. Curaleaf purchased Tryke Companies in November to expand into three more states. Arizona, Nevada, and Utah are now owned by the business. The Cannabis Sommelier Certification Program, Ganjier, and the Grassroots brand launched a breakthrough cooperation in cannabis education on December 7.
In November, Curaleaf announced third-quarter revenue of $340 million, up 7% annually and 1% sequentially. Moreover, Adjusted EBITDA increased by 18% YoY to $84 million in the third quarter of 2022. In the third quarter and the first nine months of 2022, the company produced operating cash flows of $60 million and $7 million, respectively. The third quarter of 2022 saw a net loss attributable to Curaleaf of $51 million as opposed to $55 million from the third quarter of 2021. On February 17, the company announced the opening of its 148th overall and 58th in Florida. On March 28, before the open, the corporation will release its Q4 and full-year 2022 results.
CURLF Stock Performance
On March 24 th, CURLF shares closed at $2.94, down 19.89% in the past month of trading. The stock is currently trading in a 52-week range of $2.85-$7.90 and is down 31.58% year to date. According to analysts at CNN Business, CURLF stock has a 12-month average price target of $7.59 per share. In this case, this would represent an upside of 159.29% from its last trading price of $2.94.
Cresco Labs Inc.
The cannabis company Cresco Laboratories was founded in the US and had a vertically integrated corporate structure. The company is currently in the top spot in the country for creating branded cannabis goods. Customers in Illinois and Pennsylvania choose the marijuana brand Cresco the most, according to a BDSA study. With 53 retail outlets, 20 manufacturing facilities, and 47 retail licenses, Cresco operates in 11 states. In general, part of Sunnyside’s growth strategy included opening its fourth dispensary in Pennsylvania. According to the company, the Good News product line will be extended to include new consumables and vape products. In order to increase profitability by removing third-party distribution, the Californian company will switch to owned brand distribution.
On March 16th, Cresco released its fourth quarter and full-year 2022 results. Excluding the California distribution operations discontinued in 2021, the business had the fiscal year 2022 record revenues of $843 million, an increase of 3% year over year. Adjusted revenues increased by 6% year over year. A record 61 million branded units were sold by Cresco, up 37% from the previous year. A one-time impairment charge of $141 million was included in the company’s $215 million net loss for the entire year.
Words From The CEO
“I want to congratulate the Cresco Labs team on how well they tackled the challenges of 2022. Despite the headwinds, the Cresco team generated a record $843 million of sales, a record 61 million branded units sold (+37% year-over-year), and a record 4.6 million retail transactions (+15% year-over-year). Our relentless focus on providing the highest perceived value to the consumer led Cresco Labs to have the number one most sold branded product portfolio in the U.S. for the second straight year. Cannabis made progress on its path to becoming one of the largest consumer product categories in the country. The limited legal cannabis industry reached over $25 billion2 in revenue and produced almost $4 billion in state tax revenue. The current estimated regulated-plus-illicit cannabis market in the U.S. is nearly the size of the U.S. beer industry. From our front-line position, we were disappointed that federal reform did not pass late last year, but last year’s efforts have led to strong momentum for change with the new Congress. None of the challenges of 2022 change the long-term thesis and opportunity that is cannabis.”
Charles Bachtell, CEO and Co-founder of Cresco Labs.
CRLBF Stock Performance
CRLBF shares finished on March 24 th at $1.52, down 12.68% in the last month. The stock is presently trading in a 52-week price range of $1.52-$6.58, showing a 15.56 percent decrease year to date. According to analysts at CNN Business, CRLBF stock has a 12-month median price target of $3.45 per share. In this case, this represents an upside of 127.10% from its last trading price of $1.52.
Top Pot Stocks For 2023 And Short-Term Investing
In general, examining their financials and press releases could make it easier to identify the top cannabis companies on the market. Several experienced investors are actively trading short-term positions in the leading cannabis companies to profit from the current market instability. Before opening a position, use technical indicators and chart patterns to pinpoint the ideal entry points and take-profit zones. You can improve your ability to execute profitable trades by diligently seeking favorable setups. Since the best marijuana stocks in the US are well known for their volatility, they may be among the top stocks to watch in 2023.