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cannabis companies, such as Trulieve Cannabis , Curaleaf, and Cresco Labs, have seen their shares take a plunge, dropping more than 27%, 24%, and 10%, respectively, since the start of the year.
Investors may think now is the time to get out of cannabis stocks, but those falling share prices provide an opportunity to lock in a low share price before things eventually bounce back.
The key, of course, is finding the right marijuana stocks.
Verano Holdings is in 15 states, with 112 operating retail locations, and soon will be in 18 states, with plans for more than 120 retail stores.
The deal gives Verano one of 10 vertically integrated licenses to grow and dispense medical cannabis products in the state, four operating medical dispensaries, and the license to open up four more dispensaries, including three for recreational sales.
In the most recent third quarter, the company reported revenue of $207 million, up 4% sequentially and 106% year over year .
The company has, as of March 1, 161 dispensaries in 11 states and has been profitable for 15 consecutive quarters.
Through nine months, the company reported $633 million in revenue, up 79% YOY, and net income of $89.6 million, up 49% over 2020.
Trulieve and Verano Holdings continue to open new dispensaries and branch out into new states, but what I like most about these cannabis stocks is they have grown conservatively, keeping an eye on maintaining quality margins.
This enables them to position themselves to be dominant players in the industry when opportunities present themselves.
If I had to choose right now, it would be Verano because of its lower forward P/E ratio and higher EBITDA margin.