Analysts predict a breakout coming to the cannabis company starting soon
Cresco Labs could be one of the biggest winners if Democratic presidential nominee Joe Biden takes the election on November 3. Legislation such as the SAFE Banking Act would allow financial institutions to work with the cannabis industry without violating federal law. Senate races could also impact the passage of legislation that would permit states to enforce their own cannabis laws. Cresco Labs and other US-based cannabis operators could then list their shares on major U.S. stock exchanges. Joe Biden is seen as a good bet to support cannabis-related legislation passed by his own party, whereas a re-elected Trump is predicted to throw chaos into the mix.
Nearly all US marijuana stocks would benefit from a complete Democratic sweep on Election Day. Cresco could be one of those most able to profit, because of upcoming votes that will be held on ballot initiatives to legalize recreational marijuana in Arizona and New Jersey.
Every player in the cannabis market will be knocking on the door for the New Jersey market, if the state votes to legalize recreational marijuana in November, and Cresco would likely be among the first to expand into the state. Cresco’s business is doing very well in the nine states where it already does business, and some of those cannabis markets have yet to see any real growth. The company also has a clear path to growth, with 29 retail licenses. It is set to expand quickly as it only has 19 dispensaries in operation.
With the purchase of Origin House, Cresco now has major cannabis distribution operations in California’s huge recreational cannabis market, which would allow it to transition into neighboring Arizona if voters choose to legalize recreational cannabis.
Cresco and other US pot stocks are set to soar if Election Day is kind to the cannabis industry.