US Marijuana Stocks: Why It’s Time to Get Serious About It

BY: Chronic Staff | Recent News | published August 31, 2021

With the expansion of legalization and financial stability, Wall Street says it’s time to pay attention to U.S. marijuana stocks.

The way to profitability is stronger than Canadian counterparts even though cannabis isn’t federally legal yet, as per analysts.

Sales growth helps reshape the US Cannabis industry since big companies buy smaller companies.

Marijuana stocks analyst at Craig-Hallum, Eric Des Lauriers said that profitability between Canadian and American operators is night and day.

Green Thumb Industries (GTBIF), Curaleaf (CURLF), Truelive (TCNNF), and Cresco Labs (CRLBF) have operations stretching across multiple legal states as US top producers. They are equipped to continue growing in the industry and can possibly surpass $28 billion in the succeeding year.

However, there are still reluctant lawmakers around that hinder efforts to legalize marijuana at the federal level. This puts worry on the prospect of an industry with a handful of companies as acquisition accelerates and may sacrifice high-quality weed. This will drive consumers away. Despite the increasing concern about quality, people still follow the industry and see the legal world expand, even with ample room for gains.

58% of adults in the US want full legalization as per the latest IBD/TIPP poll. US lawmakers have tried to advance measures to federally decriminalize cannabis and open up access to basic banking services to the industry. We’ve seen faster progress at the state level. Meanwhile, recreational cannabis is now legal in 18 states and the District of Columbia. Medical marijuana use is legal in 37.

The sales in 2022 are expected to go up to 24% to $28.3 billion, bigger than Canada.

As of July 16, there are 130 targeted merger-and-acquisition transactions in the US this year. These deals are at a total value of $5 billion, a record.

Some marijuana stock analysts debate on the deals. Others say it can add to profits while some worry that the industry will pay properties that performance would not match up. The rest says that higher valuation will not encourage acquisition.