New Frontier Data has forecasted 21% average annual sales growth between 2019 and 2025 in the U.S., which would lead to more than $41 billion in yearly revenue by mid-decade.
One of the odd quirks about investing in marijuana is that neither the New York Stock Exchange nor Nasdaq will allow companies that directly deal with the cannabis plant in the U.S.
The problem is that the Canadian weed industry is wrought with regulatory and supply issues, leaving Robinhood investors to choose between poor-performing Canadian pot stocks and avoiding the industry altogether.
The vast majority of the funds’ invested holdings are devoted to MSOs — i.e., companies that control the cultivation, processing, and retail sale of pot products in the United States.
Following its acquisition of top-notch pot brand Select and privately held MSO Grassroots last year, Curaleaf is on track to be the first pot stock to hit $1 billion in sales.
With the buyout of Harvest Health & Recreation pending, Trulieve will soon be rivaling Curaleaf in size.
Ancillary cannabis businesses don’t come into direct contact with the plant, but are nevertheless instrumental to the growth of the weed industry.
It’ll probably take less than half this time for Innovative Industrial Properties to completely recoup the $1.6 billion it’s invested.
Under its sale-leaseback agreements, IIP buys cultivation or processing facilities for cash and immediately leases the property back to the seller.
Another ancillary stock with plenty of upside potential is GrowGeneration to soil, lighting, nutrients, and pest solutions.
Although GrowGeneration won’t be able to grow by a triple-digit percentage every year, its management team hasn’t been shy about using acquisitions to expand its reach into new markets.