| Stock | Price | 52 Week Range | Marketcap | EPS | Dividend Yield | Chart (24H) | Sector | Employees | Last Updated |
|---|---|---|---|---|---|---|---|---|---|
| $1.55 | 1.17B | 0.28 | 0.00% | Healthcare | 5,650 | 21 hours ago | |||
| $4.82 | 906.83M | 0.71 | 0.00% | Healthcare | 5,400 | 21 hours ago | |||
 VERANO HOLDINGS CORP VRNOF | $1.28 | 456.86M | 0.42 | 0.00% | Healthcare | 3,900 | 21 hours ago |
As we inch closer to the 2024 Presidential Election, the spotlight on cannabis legalization is brighter than ever. The potential for substantial gains in cannabis stocks is immense, driven by several key catalysts: overwhelming public support for legalization, regulatory shifts, and market expansions both in the U.S. and Europe. In this article, we dissect why the cannabis sector could be a goldmine for investors and highlight three must-watch stocks positioned for explosive growth.
Why This Investing Opportunity is Exciting and Relevant
Public Support for Legalization
Public sentiment around cannabis legalization is at an all-time high. According to recent polls, a staggering 88% of Americans support some form of cannabis legalization. This is not just a national trend but a key talking point for candidates vying for votes in 2024. As public opinion sways, the likelihood of more favorable cannabis legislation increases. Politicians are likely to address this substantial voter base, possibly leading to nationwide changes in cannabis laws.
European Market Expansion
The winds of change are sweeping across Europe too. Germany recently legalized cannabis, setting the stage for potential domino effects in other European countries. As one of the largest economies in Europe, Germany’s legalization efforts could unlock large, untapped markets for cannabis companies. For investors, this represents an unprecedented opportunity to capitalize on the emerging European cannabis sector.
U.S. Regulatory Changes
Back home in the U.S., there is anticipation around the rescheduling of cannabis as a Schedule III drug. Such a move could reduce the tax burdens currently stifling the profitability of cannabis companies, due to the onerous 280E tax code regulations. This regulatory shift could translate into higher profit margins, making cannabis stocks more appealing than ever before.
Florida Market Potential
Florida’s upcoming vote on cannabis legalization is another catalyst that could drive substantial gains. If the vote passes with the expected 64% support, the cannabis market in Florida could triple, reaching an estimated $6 billion in sales. This substantial market expansion would directly benefit companies operating in the state, making them ripe for investment.
Key Stocks Mentioned and Analysis
Editor's Note: Analysis and insight for this article were originally sourced sourced from our friends at InvestorPlace
Curaleaf Holdings (CURLF): Curaleaf: Strategic Market Expansion Could Yield Impressive Returns
Overview
Curaleaf Holdings stands to gain significantly from the potential legalization of cannabis in Florida and other key states. The company’s strategic positioning in expanding markets such as New York, Germany, Ohio, Pennsylvania, and potentially Florida makes it a formidable player in the cannabis market.
Reasons to Invest
- Strategic Exposure: The company’s footprint in burgeoning cannabis markets aligns perfectly with potential legalization efforts, setting it up for robust growth.
- Financial Position: Curaleaf has showcased resilience despite recent earnings misses. It closed the last quarter with $105 million in cash and positive cash flow from operations.
- Analyst Support: Alliance Global Partners recently raised its price target for Curaleaf to $12, signaling strong future potential for investors.
Challenges
While Curaleaf’s recent earnings reflect some losses, the potential passing of legalization in Florida could significantly enhance its revenue and profitability. Smart investors might want to seize this opportunity before the stock reflects the potential market expansion.
Analyst Ratings for CURLF
| Metric | Value |
|---|---|
| Consensus Rating | Strong Buy |
| Average Price Target | $9.16 |
| Current Price | $3.85 |
| Potential Gain | 137.92% |
| Number of Ratings | 5 |
Analysts’ Outlook Summary
- Consensus Rating: Strong Buy
- Average Price Target: $9.16
- Upside Potential: 137.92% from the current price of $3.85
Analysts are generally optimistic about Curaleaf Holdings (CURLF), with a strong buy consensus rating based on 5 analyst ratings, no holds, and no sells. The average price target is $9.16, indicating a significant increase potential from the current price of $3.85.
Trulieve Cannabis (TCNNF): Buy Trulieve Cannabis: Leveraging Its Market Stronghold for High Gains
Overview
Trulieve Cannabis has carved out a dominant position in Florida’s cannabis market and stands as the best-positioned company to benefit from the potential adult-use cannabis market in the state.
Reasons to Invest
- Market Stronghold: Trulieve’s significant presence in Florida is a strategic advantage that could lead to substantial gains if legalization efforts are successful.
- Analyst Optimism: Analysts from Needham and Canaccord have placed considerable confidence in Trulieve, raising their price targets to $14.50 and $38 respectively.
- Financial Health: The company has demonstrated robust financial health, with a positive EPS beat and increased revenue, coupled with substantial free cash flow from operations.
Current Valuation
Currently trading at around $9.25, Trulieve offers a potentially lucrative upside. Should the legalization measure in Florida pass, analysts believe the stock could easily reach $13 per share, offering a great opportunity for intelligent investors to capitalize on this growth.
Analyst Ratings for TCNNF
| Metric | Value |
|---|---|
| Consensus Rating | Buy |
| Average Price Target | $11.71 |
| Current Price | $4.06 |
| Potential Gain | $7.65 |
| Number of Ratings | 14 |
Summary of Analyst Outlook
- Consensus Rating: Analysts have a consensus buy rating for Trulieve Cannabis Corp. (TCNNF).
- Price Targets: The average price target is around $11.71, indicating a potential gain of about $7.65 if the stock reaches this target.
- Current Performance: The current price is $4.06, which suggests that the stock might be undervalued and has room for growth.
Verano Holdings (VRNOF): Verano on the Verge: Potential for Triple-Digit Gains
Overview
With an extensive network of dispensaries, Verano Holdings is perfectly positioned to benefit from potential legal cannabis sales in Florida.
Reasons to Invest
- Broad Dispensary Network: Operating 77 dispensaries in Florida, Verano is strategically placed to capitalize on any legalization developments.
- Share Buyback Plan: The company’s $50 million share buyback plan indicates strong confidence in its valuation and future growth prospects.
- Tax Advantages: If cannabis is rescheduled to Schedule III, Verano could bypass the punitive 280E taxes, significantly enhancing its profitability.
Market Potential
Currently trading around $3.52, Verano has substantial room for growth. Analysts are eyeing a near-term target of $6 per share if legalization progresses favorably in Florida, making this a compelling buy for forward-thinking investors.
Analyst Ratings for VRNOF
| Metric | Value |
|---|---|
| Consensus Rating | Strong Buy |
| Average Price Target | $8.35 |
| Current Price | $4.86 |
| Potential Gain | 128.45% |
| Number of Ratings | 13 |
Summary of Analysts’ Outlook
- Consensus Rating: Strong Buy
- Average Price Target: $8.35
- Current Price: $4.86
- Potential Gain: 128.45%
- Number of Ratings: 13
Contributor Disclosure: Ian Cooper, the author, does not hold positions in the stocks mentioned.
Editorial Disclosure: The editorial team has also not taken positions in the stocks mentioned.
The 2024 Presidential Election and accompanying state-level legalization initiatives present a unique opportunity for savvy investors to bet on the cannabis sector. Companies like Curaleaf Holdings, Trulieve Cannabis, and Verano Holdings are well-positioned to capitalize on market expansions and regulatory changes, particularly in Florida. As we approach this pivotal moment in the cannabis industry, these stocks are worth serious consideration for those looking to get in on the ground floor of a major market shift.
