3 Hot Cannabis Stocks Poised for a Smokin’ Hot Future

Hot cannabis stocks continue to get investors’ attention because the industry is experiencing secular tailwinds. With efforts to legalize cannabis in many places and a market expected to reach $75.09 billion by 2029, it’s hard to ignore hot cannabis stocks.

Further breaking down the cannabis market, one thing becomes clear: If you are looking for hot stocks, invest in the North American market. Recently valued at $15.82 billion in 2023, projections are for it to rise 13.7% annually from 2024 to 2030. One estimate says sales in the U.S. could touch $72 billion by 2030, subject to more states going through the legalization process.

Also, more states are legalizing medical cannabis use, which is helping the U.S. business grow. Medical cannabis is legal in 38 states, Washington D.C. and three territories. The growing acceptance of using cannabis to treat long-term illnesses like cancer, diabetes, arthritis and epilepsy is supporting this trend.

However, expected to increase to the largest degree from 2024 to 2030 is leisure use. Two territories, Washington D.C. and 24 states, permit adult cannabis use.

Amid these circumstances, Illinois has already made more than $1 billion in legal cannabis sales this year, and Maryland made $1.1 billion in its first year of permitted adult usage.

As a result of these positive regulatory developments in the U.S. and the total market size, let’s explore three hot cannabis stocks, all rated “strong buy,” with upsides above 50% in each case.

Curaleaf (CURLF)

Curaleaf (OTCMKTS:CURLF) is down around 13% in the past six months, opening up an attractive entry point for investors seeking hot cannabis stocks.

Since Curaleaf is the largest national cannabis retail brand in 17 states and one of the most diverse product lines, analysts have a “strong buy” consensus on CURLF. Their average price target of $9.19 suggests an over 117% upside potential.

Despite a tough market, the firm made a 48% profit in the first quarter of 2024. The business bought $15 million of December 2026 notes at 7.75% to enhance its balance sheet and reduce long-term debt.

Additionally, a new pharmacy opened in North Miami Beach. Thus, there are now 146 national merchants and 62 Florida pharmacies.

The Curaleaf Select Fruit Stiq rechargeable vape pen is also proving popular in Nevada, Utah and Arizona. New Jersey, Florida, Nevada, Utah, Illinois, Ohio and Missouri will boost it if the government approves.

Curaleaf’s Grassroots Cannabis brand has also developed new products to meet premium cannabis demand. Based on this, the latest medical and recreational flower products and extracts are being produced.

Trulieve Cannabis (TCNNF)

Rising to become a national powerhouse, Trulieve Cannabis (OTCMKTS:TCNNF) has triumphed in Florida and is now entering Massachusetts and California. Analysts have an average 12-month price target of $18.07 and 80.70% upside for shares.

Up 4% from last quarter and year, Trulieve announced $298 million in first-quarter 2024 sales. More customers justified this increase and higher average package sizes. On $174 million in gross profit, their GAAP gross margin was 58%.

Its adjusted EBITDA of $85 million — or 29% of sales — was $106 million, or 36% of sales. This is a 35% rise from last year; from the prior quarter, it is 21%.

Trulieve added three Florida locations: Cocoa Beach, Palm Bay and Pinellas Park. At the end of the quarter, 31% of their shops were outside of Florida, giving them a national reach.

Trulieve medicinal cannabis businesses have been established in Homosassa, Brooksville, Madison, Panama City and Gulf Breeze, Florida. These stores provide, among other choices, walk-in and quick pickup.

Trulieve is also buying Harvest of Ohio LLC, adding more Ohio locations including fresh stores in Columbus and Beavercreek.

Trulieve CEO Kim Rivers is positive about the company’s future, saying that its main business was profitable and that innovations would enable the firm to grow. The company fervently supports the November 2024 adult legalization of marijuana.

Green Thumb Industries (GTBIF)

Green Thumb Industries (OTCMKTS:GTBIF), down 5% over the last six months, wraps up our exploration of hot cannabis stocks with a potential upside of 74.42% based on a target price of $20.39.

For the first quarter of 2024, Green Thumb Industries recorded profits per share of 13 cents, much more than the 4 cents analysts expected. GTBIF additionally reported making $275.81 million, more than the predicted $268.38 million.

Besides, since the 17th RISE plant opened in New Port Richey, additional Green Thumb stores have emerged in Florida. The company seeks to raise its market share in important areas, hence this development fits well with that strategy.

Lastly, Boston Beer (NYSE:SAM) and Green Thumb Industries are exploring a prospective combination. The aim is to profit from cannabis’s growing popularity and declining sales of drinking alcohol. Ben Kovler, the CEO of Green Thumb, is in charge of the merger strategy, so he may be very influential in the beverage and cannabis marketplaces.

On the date of publication, Faizan 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.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.