These two cannabis stocks could make good investment targets

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Two cannabis options are high on the list of investment targets heading into November

There is no doubt that the announcement made by President Joe Biden a couple of weeks ago made investors find enough reasons to believe even more in cannabis stocks. The president suggested that a review be initiated to remove cannabis from the Schedule I drug list. That may be good news considering that the marijuana sector has not made much progress toward federal legalization. While federal cannabis reform may not come immediately, smart investors know that when it does, marijuana stocks will be expensive.

Green Thumb Industries stock could be seen as a bargain, considering how much it can grow when federal reform happens. While the second half of last year was not a positive period for cannabis stocks, the Illinois-based multi-state operator saw its shares rise 46% in the past three months.

The company’s ability to generate positive GAAP net income for eight consecutive quarters can be credited as one of the main culprits for this. Its revenue has nearly quadrupled from $216 million in 2019 to $894 million in 2021 and the company is expected to continue on that path as the years go by.

On the other side is Tilray Brands, a company that stands apart from many of its Canadian peers when it comes to looking to be profitable. During the last quarter, Tilray marked its 14th consecutive quarter of positive adjusted EBITDA, which came in at $13.5 million. Tilray will have a big advantage in the post-legalization US marijuana market.

With big-name and profitable EBITDA partners such as SweetWater Brewing, Breckenridge Distillery, and Manitoba Harvest, its position is more than privileged. The firm plans to generate $4 billion in annual sales by the end of fiscal 2024.