3 Cannabis Stocks Blazing a Trail to Legalization

As excitement builds, U.S. federal agencies are looking to revise cannabis regulations.

Support for cannabis legalization has surged to unprecedented levels, which bodes incredibly well for cannabis stocks. A Gallup survey in November last year revealed that a staggering 70% of Americans advocate for cannabis legalization, marking a historic high in public sentiment. This sentiment is further underscored by the wave of states legalizing cannabis for both recreational and medical purposes, along with the Biden Administration’s pardoning of individuals convicted of simple possession.

Additionally, there is growing excitement over the possibility of federal agencies, such as the Drug Enforcement Agency (DEA), moving cannabis to a more favorable regulatory classification. Moreover, with multiple states poised to include marijuana legalization initiatives in the upcoming 2024 election, the momentum shows no signs of slowing down.

Consequently, it is an opportune moment to delve into these three high-quality cannabis stocks. Get ready to capitalize on the potential windfall of federal legalization.

Verano Holding (VRNOF)

Established in 2021, Verano Holdings (OTCMKTS:VRNOF) has quickly cemented its presence in Florida. Market analysts are buzzing about the state’s marijuana market potentially tripling post-legalization. Hence, Verano Holdings remains an excellent pick in its niche with such a major tailwind behind it.

Moreover, Verano operates across 13 states with 14 production facilities. This widespread coverage requires the company to navigate the maze of marijuana laws at both state and federal levels. However, the company has streamlined costs through excellent management while customizing its production to align with local trends.

Furthermore, despite the challenges, its revenue growth year over year (YOY) stands at a tremendous 7.2%, or 12% ahead of the sector median. Also, its EBITDA growth stands at a spectacular 35%, besting the sector median by 805%.

Curaleaf Holdings (CURLF)

Curaleaf Holdings (OTCMKTS:CURLF) is marching forward with aplomb, boasting an 89.4% bump in stock value over the past six months. This ascent suggests the outset of a prolonged growth phase, backed by Curaleaf’s operational footprint across 17 different U.S. states.

Further bolstering its growth trajectory, Curaleaf’s recent acquisition of Can4Med in Poland marks a major leap into the European market. This expansion is a key catalyst for future growth, evidenced by a 120% bump in international cannabis revenue to $16 million for the third quarter of 2023.

However, despite posting relatively unimpressive results in Q3, Curaleaf’s financial health remains robust. With a healthy adjusted EBITDA margin of 23% and positive operating and free cash flows, CURLF holds an excellent position to accelerate investments following federal-level legalization.

High Tide (HITI)

High Tide (NASDAQ:HITI) emerges as a leading contender in the Canadian cannabis scene, impressively navigating the market’s challenges. With operations extending across four states in North America, the firm showcases its capacity to thrive post-legalization

Furthermore, with its ingenious discount club model and membership programs, High Tide is on track to reach profitability by 2025. From its humble beginnings, company revenues have soared to an impressive C$487.7 million in FY2023. This upward trajectory, marked by a stellar 37% revenue increase over the last year, highlights High Tide’s operational prowess.

Additionally, HITI’s venture into owning 80% of three distinct cannabinoid brands across the U.S., U.K., and beyond, and its foray into cannabis accessories online diversifies its market position. These strategic moves fortify its standing as an attractive investment in the rapidly expanding cannabis sector.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.