Several cannabis companies are positioned to see continued improvements this year
A double-digit revenue growth percentage is a clear indication of how well a stock is performing these days. According to several marijuana industry experts, there are three companies that easily achieve that goal, putting them on the priority list for many investors who want to see strong earnings this year. Ascend Wellness, Jazz Pharmaceutical and Green Thumb Industries may have their stocks in a downtrend right now, but their sales are growing as the year progresses.
Illinois, Michigan, Ohio, Massachusetts, Massachusetts, Pennsylvania and New Jersey are states in which Ascend Wellness has established a total of 30 dispensaries, with more in the pipeline. While it is true that over the past 12 months, its stock has seen a sharp 70% drop, its financials are heading in the right direction.
The company has focused these past five years on entering markets where medical marijuana use is legal just before they become adult-use states. This smart strategy has helped it position itself strongly when it comes to profits.
Jazz Pharmaceutical is a special ancillary stock for investors who don’t want to deal with the direct ups and downs of the cannabis industry. The company focuses on oncology and neuroscience therapies, including Epidiolex.
This drug has become world famous for being a cannabidiol (CBD)-based anticonvulsant to treat patients with Tourette’s syndrome. The company’s sales increased 11% year over year to provide $511.9 million of the company’s $940.6 million in revenue in the third quarter.
Lastly is Green Thumb Industries, a company whose profitability is its biggest draw. Unlike the other two competitors mentioned above, this company not only boosts its revenues but takes its profitability sky high.
Green Thumb reported a gross profit of $131 million in the third quarter, up slightly year over year. With a presence in 15 states, its brand continues to grow, especially in recreational markets and those likely to welcome recreational use in the medium term.