Stocks With Potential: Cresco Labs

After years of speculative trading in the marijuana industry, investors are finally gaining insight into which companies will be long-term winners or losers.

American Cresco Labs (OTC: CRLBF) has all the features a great winner should have.

Perhaps the most interesting thing about Cresco Labs and other U.S. marijuana stocks is that they do not need federal legalization to thrive. While legalizing marijuana at the federal level will eliminate some operating expenses, it is not a requirement for marijuana stocks to grow. Cresco Labs is projected to be one of the fastest growing stocks in the next four years. And in making this forecast, it does not take into account any changes from the federal government. Like most companies, Cresco Labs has a retail presence. The company, which has 29 licenses and 20 retail outlets, 10 out of 20 health centers are located in the state of Illinois under license. Cresco has a solid opportunity to increase its share of medical marijuana sales in a market that reached $ 1 billion annually in 2020. It is on the verge of acquiring Bluma Wellness, which also has a stock volume of $ 213 million, to enhance Cresco's retail presence. Assuming the transaction is complete, Cresco will add seven more business stores in Florida to its portfolio. This way, he gets eight additional retail licenses in Florida.

Florida plans to become the third largest marijuana market by 2024.

But the momentum that really makes Cresco shine is the company's wholesale sales. The Origin House acquisition in January 2020 brought with it a cannabis distribution license in California, the world's most lucrative cannabis market by annual sales. This license allows the company to place its products in more than 575 healthcare homes across California. While California's wholesale margins are lower than retail, Cresco from California feels it has enough volume to make it valuable. Source: https://www.fool.com/ You may also be interested in:

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