For patient investors, buying and holding these stocks could offer big rewards
It’s no secret that reaching excitement levels with cannabis stocks these days is a difficult task, especially with the year the industry has had so far. However, that’s not to say that there aren’t some companies within the cannabis market with pretty solid business models, even though their stock prices have fallen along with their competitors. Given the projections that are expected for the cannabis industry, it makes a lot of sense to buy quality cannabis stocks now, while their valuations are low, and have a stable long-term investment.
There is no doubt that AFC Gamma is considered to be one of the best deals you can currently find in the market. This firm boasts a lot of profitability in addition to maintaining pioneer status and triple-digit growth in the last quarter.
This firm is a cannabis real estate investment trust (REIT) in the Innovative Industrial Properties (IIP) line. However, it should be noted that its shares are more attractively priced, with a price-to-earnings ratio of 9.15′, almost half that of IIPs. Being a relatively new company, it has a growth potential that gives great opportunities to whoever wishes to invest in it.
Trulieve Cannabis is another company that has caught the attention of many experts because it has shown the business acumen to run a profitable marijuana company even before it really expanded with the purchase of Harvest Health and Recreation for $2.1 billion in 2021. As a result of that move, the largest multi-state operator (MSO) was born, and it is possible that certain economies of scale may now come as a result that will serve it well in the future.
For the first quarter, the firm posted revenues of $318.3 million, up 64% year over year and up 4% sequentially. You should keep in mind that its stock is down nearly 50%, making this a good time to buy shares of perhaps the MSO most likely to survive and thrive in the years ahead.