These three cannabis stocks are worth a close look

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The cannabis market is expected to rally this year, and several companies are going to set the pace

The coronavirus pandemic brought contrasting impacts to the cannabis industry; there are some companies thriving while several industries continue to struggle. However, it still has a long way to go following a year of unprofitability and a lack of capital to fund expansions. There are at least three cannabis companies that have great projections for the immediate future and that are worth monitoring for an investment opportunity.

Trulieve Cannabis is still posing as one of the most powerful multi-state operator (MSO) in the country, with one of the best business metrics in the retail space. Its revenue for the first quarter was $96.1 million, which is up 21%. Trulieve is the true king in Florida, with most of its 47 operating stores located in the Sunshine State, along with a few others in California, Massachusetts and Connecticut. This is a great strategy to have as a backup plan in case Florida’s market gets saturated at some point.

Green Thumb Industries is another MSO winner during this crisis, which is heading towards a new high. One of the recent changes in the company that has brought a lot of benefits was the launch of recreational cannabis in Illinois on January 1. Its revenues surge 35% to $102.6 million, while gross margins were reported at 51.6%. Green Thumb has a great position in several states with a recreational market that is bound to thrive, like Florida, New Jersey and Pennsylvania.

The third cannabis stock worth considering for the near future is Curaleaf, another MSO which is posing as the global leader in the cannabis space. Its first quarter brought a managed revenue of $105 million. Just to compare how successful Curaleaf is being right now, Canopy Growth, which is one of the companies analysts forecast to have true success, reported a Q1 revenue of less than $100 million. The estimated revenue for next quarter due to strong sales at Grassroots is $165 million, even after taking a hit due to the closure of its Massachusetts and Nevada.