Trulieve: Cannabis Stock Pick for 2020
Many cannabis stocks are trading at all-time lows with several now down 50-90% in the last twelve months. However, it appears as though cannabis stock traders are returning to the sector to take advantage of these rock bottom prices as cannabis stock prices stabilize. Cannabis companies like Green Thumb Industries (GTII) and Aurora Cannabis (ACB) continue to report record revenues – helping to breathe life back into the once-booming cannabis sector. While these popular cannabis stocks garner all the attention, there are plenty of lesser-known cannabis stocks such as Trulieve Cannabis which have strong growth trajectories. Why is Trulieve our cannabis stock pick for 2020?
As demand and legalization continue to increase on a global scale – there’s plenty of great cannabis stock investment opportunities out there. The trick is to identify the winners from the losers to choose the best cannabis stock investments for 2020. After researching the fundamentals of hundreds of hemp and cannabis stock investment opportunities, our analysts believe Trulieve is one of our top cannabis stock picks for 2020, and here’s why:
Why is Trulieve Our Cannabis Stock Pick for 2020?
Trulieve Cannabis Corp. (OTC: TCNNF) has a very strong position in its home state of Florida, the third-largest medical cannabis market in the United States. They own and operate 43 dispensaries, currently produce over 30,000 kgs per year, and, are currently on a revenue pace of more than $200 million per year.
Trulieve plans to also expand its growing capacity in Florida while expanding operations in other hot cannabis markets like California and Massachusetts. The success of these current expansion plans could potentially increase their revenue by an additional 50%, taking them close to $300 million a year.
While this is an ambitious growth plan – one giant question for cannabis stock investors remains: is this revenue already priced into their stock or will the stock price grow as revenue grows?
Trulieve: A Good Buy-and-Hold Cannabis Stock for Long-Term Gains?
By our calculations, the company has a price to sales ratio of 4.3 —about the average in the tobacco industry- which is a positive sign for them and shows that any revenue growth should drive the stock price higher.
Trulieve maintains over 50% market share in Florida, it has over 500% revenue growth year over year, and 300+ product SKU’s. All this means fantastic growth is ahead. Combine this with the fact they gave back a lot of momentum in 2019 and 2020 should be a perfect year to gain it all back, and more
For investors who won’t mind waiting a year for an attractive return on investment, we think Trulieve at its current price of $12.65/share presents an excellent opportunity for long-term gain. Continue to watch this cannabis stock as we expect great things to continue during Trulieve’s journey to the top of the cannabis industry food chain in the United States.
Trulieve Cannabis Corp. engages in the cultivation and production of cannabis products. The company cultivates and produces its products in-house and distributes cannabis products to its branded stores, as well as directly to patients via home delivery. Its products include smokable flower, inhalation, oral, sublingual, topical, inter-nasal, and concentrates. The company was founded on September 21, 2018, and is headquartered in Quincy, FL
Trulieve: Cannabis Stock Pick for 2020
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