As we approach 2024, the cannabis industry is poised for a significant upswing, driven by a combination of political support and shifting public sentiment.
A key development in this sector is the U.S. Department of Health and Human Services’ recommendation to reclassify marijuana as a Schedule III controlled substance, a move endorsed by six governors. This aligns with growing public approval, particularly in states like Ohio and Florida, making cannabis stocks an attractive investment prospect for 2024.
The decriminalization and normalization of cannabis reflect public opinion and promise substantial financial benefits. Given these progressive changes, the cannabis industry’s growth trajectory in 2024 appears well-supported. Let’s delve into seven cannabis stocks for 2024 that are primed for long-term investment.
Curaleaf Holdings (OTCMKTS:CURLF) is an attractive choice at current prices. Its third quarter results demonstrated strong financial health, with operating and free cash flow of $47 million and $33 million, respectively. The company’s outlook is positive, predicting a strong finish to the year and a promising start to 2024.
Curaleaf’s investment in research and development is a significant step towards capturing the lucrative medicinal cannabis market in Europe. The company’s current trading position is compelling, standing at just 2.3 times forward sales estimates.
Green Thumb Industries (OTCMKTS:GTBIF) is a standout in the cannabis sector, delivering consistent cash flow. The company’s strong financial health positions it for industry dominance. In its most recent financial quarter, Green Thumb’s performance exceeded market expectations.
The company posted a third-quarter earnings per share (EPS) of five cents, beating forecasts by a penny. Its revenue climbed to $275.4 million, marking a 5.4% year-over-year increase and exceeding expectations by $18.1 million.
Innovative Industrial Properties (NYSE:IIPR) is a specialized real-estate-investment-trust (REIT) focusing on the cannabis sphere. IIPR stands out with a consistent track record of collecting over 97% of its due rents. The company’s anticipated debt restructuring could enhance its financial flexibility, paving the way for strategic acquisitions and reductions in liabilities.
Valley National Bancorp (NASDAQ:VLY) presents a unique opportunity as an attractively priced bank stock. What sets VLY apart is its unconventional foray into the cannabis sector. Valley National has effectively embraced cannabis banking and established a dedicated division tailored to meet the diverse financial needs of cannabis-related businesses.
Verano Holding (OTCMKTS:VRNOF), founded in 2021, has been riding the momentum of a major tailwind. The potential for adult cannabis legalization in Florida, where it has a strong foothold, adds to Verano’s allure. However, investing in Verano requires a long-term perspective. With 67% of Floridians supporting cannabis legalization, Verano is well-positioned to capitalize on this shifting landscape.
Leafly Holdings (NASDAQ:LFLY) is a dominant force in the cannabis sector. In its recent financial report for the third quarter, Leafly reported revenues of $10.6 million. Despite a slight dip from the previous year, the company demonstrated financial prudence by slashing operating expenses by 33% to $10.9 million.
OrganiGram Holdings (NASDAQ:OGI) is a key figure in Toronto’s cannabis landscape. The company’s trajectory in the recreational cannabis market has been impressive, marked by an encouraging top-line growth, propelled by robust hashish sales and a revival in flower sales.
Furthermore, the company is strategically converting its grow rooms to use custom-designed F1 hybrid seeds to achieve low-cost production while focusing on terpene-rich, high-potency cultivars.
Let us know what you think, please share your thoughts in the comments below.
