Photo by MACKENZIE FREEMIRE
The green rush of 2024 is just beginning.
As the medical cannabis industry’s value blossoms from $6.9 billion in 2020 to an estimated $40 billion in 2024, the time is ripe to explore this high-growth sector.
But before you jump in, let’s get savvy about navigating the budding market. Whether you’re a seasoned investor or a newcomer to the stock exchange, understanding the nuances of cannabis investments is key.
In the following sections, we’ll guide you through how to get started, break down some top cannabis stocks to watch in 2024, and wrap up with tips to help guide your investing experience.
Let’s dive in and discover how one begins to invest in the cannabis market.
Exploring investment opportunities in the cannabis sector? Getting a financial advisor on board can make all the difference. They’re like your personal guide in this ever-evolving market, offering tailored advice and handling the nitty-gritty of portfolio management for you.
This is especially crucial if you’re juggling a busy schedule or are new to the intricate dance of market trends. With a pro, you’re better equipped to make informed decisions and avoid potential pitfalls.
Choosing the right platform to kickstart your investing is next. Whether it’s a reliable financial institution or a sleek, user-friendly investing app, the decision hinges on what feels suitable for your investment style and goals.
These platforms are essentially your toolkit for embarking on your investment journey. However, remember the nuanced strategy and ongoing oversight of a financial advisor can add significant value to your investing experience.
Now, it’s time to roll up your sleeves and research. Your mission is to understand the ins and outs of cannabis companies and Exchange-Traded Funds (ETFs) within this sector. Focus on critical indicators like the company’s financial stability, its standing in the industry, and trends in its earnings. This isn’t just preliminary groundwork; it’s the cornerstone of smart investing.
And finally, diversification. Spreading your investments to balance the risk can be helpful in the cannabis sector; a varied portfolio is more likely to stay resilient amidst market ups and downs.
This is where your financial advisor can step in, helping you craft an investment strategy that aligns with your economic ambitions and risk comfort level. With the right approach, you’re set to navigate the waters of cannabis investment smoothly.
Photo By Curaleaf
As the titan of publicly traded cannabis companies, Curaleaf often sets the pace for the industry. Even with a 34% dip over the last year, it stands tall with the highest revenue on our list at $1.3 billion. The stock surged in price following the U.S. Department of Health and Human Services agreement to ease up on cannabis restrictions.
Despite this impressive surge, it’s important to note that Curaleaf’s stock has seen a 34% dip over the last year. It starkly contrasts the S&P 500’s 15% climb, showcasing the volatility and the tough terrain cannabis investors are navigating.
CURLF still stands as the colossus of the cannabis world, boasting a revenue of $1.3 billion last year, the highest revenue amongst its peers on this list.
Photo by Green Thumb
Green Thumb Industries (GTBIF) has quickly become dominant in the U.S. cannabis landscape, boasting over 80 retail locations and 15 manufacturing facilities. Since its inception in 2014, GTBIF’s revenue sprinted past the $1 billion finish line last year, marking a 13.9% increase from the previous year.
Amidst the buzz of regulatory reforms, GTBIF’s stock saw a 37% jump, yet it has experienced a 15% dip over the past year—still a notable performance compared to its peers. This American cannabis powerhouse trades on the CSE and as an ADR on the U.S. OTC market. However, investors should note its volatility, underscored by a significant drop even during a period of strong revenue growth.
Photo by Verano
Verano Holdings, the force behind Encore, Alexia, and MUV, is a fresh face in the U.S. cannabis scene that made its public debut in February 2021 via a reverse takeover on the CSE. Despite its newness and a 42% fall last year, it has piqued investor interest, offering trades as an ADR on the U.S. OTC market.
While Verano’s history is shorter than that of its more established counterparts, with less than three years to showcase revenue trends, it stands out with the third-highest revenue growth in 2022 among the stocks listed. This nascent company’s greater risk profile might be attractive to investors seeking opportunities with high growth potential in the burgeoning cannabis industry.
Photo by Trulieve
Trulieve Cannabis, despite a market cap hovering around $1 billion, has had a challenging year, with its stock falling by 56%. Yet, amid market turbulence, this U.S. cannabis provider has demonstrated robust sales growth, leading the pack with a 32% revenue increase—the highest among its peers.
The dip in stock performance has resulted in a more attractive valuation, with a price-to-sales ratio now lower than many other prominent players in the cannabis sector.
Photo by Cresco Labs
Cresco Labs, known for being the top U.S. wholesaler of branded cannabis products, is on a strategic expansion track. With five new stores launched in the second quarter alone, Cresco’s retail footprint now impressively stands at 68 locations.
This expansion and its growth plans paint a picture of potential stock appreciation. Yet, investors might approach CRLBF with a degree of caution. The company’s revenue growth has been modest, with only a slight uptick reported last year.
In an industry still grappling with turning profits, Cresco’s revenue performance could be a red flag. The recent termination of a significant acquisition with Columbia Care suggests a focus on stabilizing its core business amidst industry challenges.
For those looking to invest, Cresco Labs’ shares are accessible as Canadian ADRs or on the U.S. OTC markets.
As we conclude our dive into the cannabis investment world for 2024, it’s clear that knowledge and strategy are essential. These top cannabis stocks, each with unique strengths and challenges, represent a sector full of potential but also marked by volatility.
With the proper guidance, such as through a financial advisor at a trusted financial institution, and a thoughtful approach, investing in cannabis stocks can be a fruitful addition to your investment portfolio. Remember, in investing, patience, prudence, and informed decision-making are your most reliable allies.