2021 is shaping up to be an incredible year for the U.S. cannabis industry – and I am expecting my #1 cannabis stock for 2021 to deliver big gains.
Today I am going to reveal the five major catalysts that I expect to drive cannabis stocks deep into a new all-time high in 2021. And then I am going to reveal my #1 cannabis stock for 2021 to play the trend.
I see five powerful catalysts that I expect to drive cannabis stocks higher in 2021.
Five more U.S. states voted to legalize: On November 3, 2020, five more U.S. states voted to legalize medical or recreational cannabis. That brings the total number of U.S. states where cannabis is legal to 39. This looks like an inflection point for cannabis in America, with close to 80% of the country now effectively legal. These new states coming online should add billions in annual sales in the next few years. This is a powerful catalysts for industry sales and cannabis stocks.
The Northeast U.S. cannabis revolution: The Northeast U.S. has recently emerged as one of the fastest growing cannabis markets in the world. New Jersey voted to legalize cannabis on November 3. New York, Pennsylvania, Connecticut and Virginia are all looking to go legal as soon as possible in order to make up for lost taxes because of COVID-19. This new region seeing a huge wave of legalization will likely transform the Northeast into one of the biggest cannabis markets in the world on par with the West Coast. My #1 cannabis sock for 2021 is an early industry leader in the Northeast and positioned to capture this growth.
The MORE Act would legalize cannabis in the U.S.: The MORE Act is one of the most cannabis friendly bills in Congress that would essentially legalize cannabis in the U.S. at the federal level. In a historic moment for the U.S. cannabis industry, the House passed the MORE Act on December 4, 2020. The bill still needs to pass the republican controlled Senate – which remains a big challenge. But either way this is a big step forward for cannabis reform in the U.S.
Democrat president and administration should be a catalyst for U.S. cannabis industry: Cannabis has strong support from both sides of the aisle these days. However, democrats are generally more cannabis friendly and that should lead to major cannabis reform in 2021 and the next few years.
Mexico is about to become the third country in the world to legalize cannabis: Mexico is on the cusp of legalizing recreational cannabis – it should happen in the next six months. Analysts are predicting Mexico could quickly grow into a $2 billion cannabis market. Potentially more important, it would leave the U.S. as the only country in North America where cannabis would be illegal at the federal level. This would give the U.S. an additional incentive to move forward with federal legalization.
With these five powerful catalysts in mind, analysts are predicting enormous growth for the U.S. cannabis industry in the next four years.
Here are some more details from mjbizdaily.com.
Retail sales of medical and recreational cannabis in the United States are on pace to eclipse $15 billion by the end of 2020, an increase of approximately 40% over 2019 sales figures, according to exclusive projections from the 2020 edition of the Marijuana Business Factbook.
Total U.S. sales could rise as high as $37 billion by 2024, according to exclusive projections from the latest Factbook, which was released Monday at MJBizConNEXT Direct.
Millions of Investors Want to Play the Trend!
Naturally, investors all across the world want to know how they can play the trend. Today I am going to reveal my #1 cannabis stock for 2021. This early industry leader is in position to dominate the U.S. cannabis industry with an unmatched portfolio of cannabis assets, brands and licenses.
This $5 Billion Weed Stock Gained 145% in 2020 – and I see More Gains ahead in 2021
Green Thumb Industries (CSE: GTII, OTC: GTBIF) is an early industry leader in the high-growth U.S. cannabis industry with a market value around $5 billion. Founded in 2014 and headquartered in Chicago, Illinois, Green Thumb is a direct play on the U.S. cannabis industry. That’s because Green Thumb has one of the best portfolios of cannabis assets in the industry. That includes:
- 13 cultivation and manufacturing facilities.
- 49 open stores with licenses for 96 retail locations.
- operations across 12 U.S. markets.
- 6 consumer product brands.
Images from Green Thumb website investor presentation.
Green Thumb Just Reported Impressive Quarterly Results
This impressive portfolio of cannabis assets is driving huge revenue gains for Green Thumb. Green Thumb recently reported quarterly results that crushed expectations. Here are the highlights from the earnings report.
- Adjusted Operating EBITDA increased 50.2% to $53.2 million, or 33.9% of revenue, quarter-over-quarter driven by continued operational scale and increased operating leverage
- Revenue increased 31.3% quarter-over-quarter and 131.1% year-over-year to $157.1 million
- New milestone of positive net income of $9.6 million or $0.04 per basic and diluted share
- Positive cash flow from operations for the third consecutive quarter
- Strong balance sheet and financial flexibility will support continued growth in 2021
Looking forward Green Thumb is in expansion mode – the company will be investing hundreds of millions into more growth in the next few years and I expect that to drive huge gains in revenue.
Green Thumb Shares are Rallying big in 2020 – I expect More Gains in 2021
Green Thumb shares are up big in 2020 – gaining 145%. Take a look at the big gain in the 2020 chart below.
Chart from tradingview.com
Looking forward I am expecting shares to continue rising in 2021. Green Thumb will likely be reporting record sales in 2021 and that should go a long way to support and drive shares higher.
Risks to Consider: The cannabis sector can be highly volatile and has been prone to boom, bust cycles for the last few years. The industry is maturing quickly but cannabis stocks are generally much more volatile than the broader U.S. stock market.
The Big Picture on the U.S. Cannabis Industry and Green Thumb – My #1 Cannabis Stock for 2021
The U.S. cannabis industry is thriving and loaded with enormous catalysts in 2021. Green Thumb is in position to capitalize. Green Thumb is an early industry leader, one of the largest cannabis companies in the world, reporting huge sales growth and ready to invest hundreds of millions into more growth in the next few years. Shares were on fire in 2020 and I am expecting another great year in 2021. That is why Green Thumb is my #1 cannabis stock for 2021.
Disclaimer: This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading. Author Michael Vodicka owns shares of Cresco Labs (CRLBF), Canopy Growth Corp (CGC), Green Thumb Industries (GTBIF), Curaleaf Holdings (CURLF).
