The cannabis industry performed horribly in 2021.
Still, the pot market in North America will expand at a compound annual growth rate of 16.6% through 2028, according to some estimates.
Harvest Health and Recreation, based in Arizona, does business primarily in the West and Northeast of the country.
In the third quarter, its revenue jumped by 64% to $224.1 million, while its net income came in at $18.6 million, 7% higher than the year-ago period.
Trulieve Cannabis is the leader in Pennsylvania, Arizona, and Florida, and it holds a 50% share of the market in the Sunshine State.
The case for investing in this top marijuana stock and holding onto it looks strong for those willing to hold onto its shares for a while, despite its recent woes on the market.
Last year, it dove headfirst into the cannabis industry with its May 2021 acquisition of GW Pharmaceuticals, in a cash and stock transaction valued at $7.2 billion.
The combined entity owns a couple of exciting products in this niche.
yet but is undergoing a trio of late-stage clinical trials as a potential treatment for spasticity related to multiple sclerosis.
In November, management said the company could potentially file a regulatory submission for nabiximols within 18 to 24 months, if all goes according to plan.
Nabiximols could also contribute meaningfully to the company’s top line in the future if it earns approval in the U.S.
The company boasts other exciting medicines as well.
For context, it expects revenue between $3 billion and $3.1 billion for the fiscal year 2021, compared to the $2.4 billion in revenue it reported in 2020.
Jazz Pharma also expects to record a net loss between $420 million and $320 million for 2021, compared to the net income of $238.6 million it recorded in 2020.
And with a forward P/E of 7.9, the company looks attractive since the average forward P/E of the biotech industry currently stands at 11.