Exploring cannabis stocks can offer a lot of financial rewards for investors
With markets at record highs, investing in marijuana is becoming increasingly attractive as a means of de-correlating portfolios. Cannabis investing is not a new trend. It’s been a while since investors have turned to the industry as an incredible opportunity to line their pockets. Clearly, a hot sector in recent years, the advancement in its legalization has given rise to new legal businesses related to the sector that has quickly gained a great deal of volume. Several of these companies offer quite attractive shares as February continues to progress.
Cresco Labs and Green Thumb Industries are two multi-state operators (MSOs) that have demonstrated strong profitability in recent years. Many investors are attracted to Cresco’s potential due to its plans to merge with Columbia Care, another major competitor in the market. Such a joining of forces would make Cresco the largest MSO in terms of annual revenues.
In addition to giving the new entity a commercial presence in all of the country’s major marijuana markets, the move will create several important cost-saving synergies. This high-caliber deal should definitely cement Cresco’s competitive position as a leader in the US high-value cannabis market. Experts say it would provide the market with one of the safest stocks to own in the face of a challenging operating environment.
For its part, Green Thumb is a unique company in that it currently generates earnings annually, something that does not appear to be common for many other companies within the industry. Its fairly rigid balance sheet is evidenced by its debt-to-equity ratio of 30.2, the lowest in the industry.
The slow progress toward cannabis banking reform has become a stumbling block for many companies, but Green Thumb has proven to be able to weather that bump. It is a resilient stock that should be in many investors’ portfolios.