These cannabis stocks could see gains before the end of September

40 0

Two familiar cannabis names are giving investors something to think about

Even though their businesses are not profitable, marijuana companies have a lot of potential, especially with more states legalizing cannabis. While many stocks have performed well, the lack of progress in federal marijuana reform and the oversupply problems in the industry have hindered otherwise promising cannabis stocks. This has led to some amazing deals for long-term investors.

When it acquires Columbia Care, Cresco Labs, a marijuana multi-state operator (MSO), will be one of the most powerful cannabis companies in the world. The combined companies will have more than 130 retail outlets in 18 markets, and an annual revenue of over $1.4 billion. Cresco expects that the transaction will close before the end of this year.

Cresco Labs is technically the largest pot producer in the country. It reported $218 million in sales for the quarter ended June 30, and that was just the beginning. Also, the company reported adjusted earnings before interest, taxes, depreciation and amortization ( EBITDA) of $51 million. This was 23% of its revenue.

Jushi Holdings, a smaller MSO than Cresco, is another one that investors should consider. In August, it reported its second-quarter numbers (ending June 30), and revenues of $72.8 million showed a 52% increase over the previous-year period. The adjusted EBITDA profit was $0.5 million.

The best thing about this stock is that it is growing at an incredible pace. The company expects its annual revenue to reach $350 million by the end of the year. This is 67% more than the $209 million in 2021 sales and four times the $81 million it earned in 2020. The company expects to have 37 pot shops in seven states by the end of this year. It should have 50 shops by 2023.