This cannabis stock is still an affordable option with great benefits

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Cresco Labs is still priced right, but might not be for much longer

The second week of January is already coming to an end and many investors are still considering a stake in the cannabis industry. Different analysts have identified stocks with attractive valuations that are underpriced. These are precisely the companies that could be part of an investment portfolio with a lot of potential for this year. Cresco Labs seems to remain a very interesting bet for investors who are looking for positive results in the coming years.

Cannabis stocks have seen sharp declines in recent years and that’s no secret to anyone. Cresco Labs has been a part of that, with its shares falling roughly 90% below the early 2021 high. While that may seem like negative news, the company finds itself with an extremely cheap buy status.

The marijuana multi-state operator’s (MSO) market cap of less than $600 million definitely does not adequately reflect its long-term prospects. Experts claim this is because the company was able to generate revenues of $850 million last year. There’s no doubt that these figures will be boosted when the closing of the Columbia Care acquisition in the first quarter of 2023 takes place.

According to recent updates, this strategic move should increase annual revenues to around $1.4 billion and make Cresco the largest marijuana operator nationwide. While industry headwinds will continue to be a reality, Cresco Labs CEO Charles Bachtell said on the Q3 call that companies that effectively overcome current challenges “will come out ahead when the winds inevitably change.”