3 Marijuana Stocks to Watch During Legalization Policy Shift

The legalization of marijuana has sparked considerable controversy in recent years. While some see this as a positive development due to its medical benefits and economic potential, others are wary of the associated health risks, increased availability to minors, and risk of addiction.

Marijuana legalization varies greatly by stateLawmakers can either fully approve the use of the products, allow them for medical purposes only, or impose penalties, including prison terms, for their possession.

Nonetheless, despite growing concerns surrounding the disadvantages associated with marijuana legalization, as of April 2024, 38 states have legalized marijuana for medical purposes, with 24 of those states also allowing it for recreational use.

With more states expected to change their laws to decriminalize the substance by next year, a significant portion of the U.S. population over the age of 21 will likely have access to marijuana.

furthermore, many other countriesCanada, Germany, Mexico, South Africa, and Thailand have legalized marijuana. That said, legalizing marijuana could provide a favorable regulatory environment for the cannabis companies mentioned below.

Curaleaf Holdings (CURLF)

Focused on providing high-quality cannabis products tailored to a variety of consumer preferences, Curaleaf Holdings (CURLF) It operates in 17 states and manages approximately 145 dispensaries and 21 grow locations.

The company emphasizes its presence in densely populated states including Arizona, Florida, Illinois, Massachusetts, New Jersey, New York, and Pennsylvania. CURLF began the year with several strategic acquisitions to expand its market presence and drive sales.

For example, last February, CURLF’s European division Acquisition of Canformed, a prominent pharmaceutical wholesaler specializing in cannabinoid medicines in Poland. This strategic initiative represents an important milestone for both companies and highlights CURLF’s commitment to improving patient access to premium medical cannabis products across Europe.

Meanwhile, last March, CURLF agreed as follows: Acquisition of Northern Green Canada (NGC), a vertically integrated Canadian licensed cannabis producer. This acquisition represents another important milestone in CURFL’s expansion strategy, especially in Europe.

The acquisition also allows CURLF to strengthen its European margins and expand its global presence across North America, Europe and Australia (Australia/New Zealand).

Additionally, the company reported a slight 1.5% year-over-year increase. fourth quarter Net revenues totaled $345.27 million. CURLF reported adjusted gross profit of $160.4 million and adjusted gross margin of 46%. Adjusted EBITDA increased 24.5% year over year to $83.01 million.

Looking ahead, analysts expect the company’s first quarter fiscal 2024 revenue to increase 1% year-over-year and earnings per share to increase 26.9% year-over-year.

Green Thumb Industrial Co., Ltd. (GTBIF)

Green Thumb Industrial Co., Ltd. (GTBIF) A national cannabis consumer products company and retailer dedicated to improving health through cannabis while contributing to the community. The company also operates a growing network of retail cannabis stores called RISE.

GTBIF operates 20 manufacturing facilities, 92 retail stores, and operations across 14 U.S. markets. The stock, which has a market capitalization of about $2.94 billion, has surged more than 73% over the past year.

During fiscal year 2023 fourth quarter, the company recorded year-over-year revenue growth of 7.3%, reaching $278.23 million. Attributable net income was $3.22 million and $0.01 per share, compared to net losses of $51.23 million and $0.22, respectively, for the same period last year.

GTBIF President and CEO Ben Kovler reflected on last year’s performance, highlighting the company’s record revenues and adjusted EBITDA of $91 million. Additionally, GTBIF invested more than $200 million in capital expenditures to fuel future growth while generating $225 million in cash flow from operations during the year.

Ending the year with a strong balance sheet, including $162 million in cash, the company returned a whopping $65 million to shareholders through share buybacks and debt repurchases. Additionally, the Board of Directors approved an additional $50 million for its share repurchase program, bringing its total remaining share repurchase capacity to nearly $60 million.

Looking ahead to 2024 and beyond, Kovler expressed optimism, citing the company’s industry-leading brands, momentum, talented team, expanding customer base, and financial flexibility as drivers of continued success.

Wall Street analysts also appear optimistic about GTBIF’s upcoming first quarter results, predicting an 8.2% year-over-year increase in revenue and an 18.5% year-over-year jump in earnings per share.

Trulieve Cannabis Corp. (TCNNF)

To date, the stock price has risen approximately 102.6%. Trulieve Cannabis Corp. (TCNNF) It has emerged as a top-tier vertically integrated cannabis company operating in multiple states in the United States. Our strong market presence in Arizona, Florida and Pennsylvania forms the backbone of our operations in the Northeast, Southeast and Southwest regions.

However, the company’s Last quarter of 2023 A mixed photo was released. TCNNF’s revenue decreased 3.7% year-over-year to $287 million. Adjusted net loss was $23 million and $0.12 per share, a slight improvement over net losses of $34 million and $0.18 per share, respectively, in the year-ago quarters.

On the positive side, the company’s gross profit margin and adjusted EBITDA margin were 54% and 31%, compared to 53% and 28% in the year-ago period.

Despite the mixed performance, TCNNF CEO Kim Rivers emphasized that the company is optimally positioned to capitalize on upcoming growth catalysts, driven by solid cash generation and a clearly defined strategy.

Analysts expect TCNNF’s revenue to reach $1.15 billion for the fiscal year ending December 2023, up 2.2% from the previous year. Likewise, the company’s fiscal 2025 revenue is expected to be $1.23 billion, up 6.5% from the previous year.

Moreover, CEO Kim Rivers recently Florida Supreme Court’s Affirmative Decision Learn about Smart, Safe Florida initiatives on the 2024 general election ballot. If passed, the plan would allow adults 21 and older to purchase cannabis products for personal use, a development that could potentially strengthen the company’s financial position.

conclusion

Significant changes in marijuana legalization policies in the United States and around the world present a unique opportunity for investors to capitalize on the growth potential of the cannabis industry. Amid expanding legalization efforts, leading weed companies CURLF, GTBIF, and TCNNF could experience solid growth in the coming quarters.

To this end, investors can watch these cannabis stocks closely for potential profits.