The 2020 pandemic hit many companies hard, while other companies took it as a chance to grow, seemingly unaffected by the state of the world around them. NVIDIA (NASDAQ:NVDA) came out as one of those thriving businesses and achieved gains of 122% in 2020. The company’s graphics processing units (GPUs) were present and needed for trends that accelerated exponentially due to the pandemic, boost...
Patience is crucial when it comes to investing. This is especially important when investing in an industry just learning to walk before getting ready to sprint into success.
This is the case with the marijuana industry. With new laws in Mexico making cannabis legal and a promising talk to be held in the US, the cannabis market is bound to boom in the upcoming decade.
Let’s take a look at two promising cannabis stocks that could grant you significant earnings in the long run.
Cresco Labs (OTC: CRLBF)
Cresco Labs ended 2020 on a win. Its results for the last quarter showed its revenue increased 292% to $162.3 million. The Chicago-based company has demonstrated solid performance and shows no signs of slowing down.
The company saw positive EBITDA (earnings before income, tax, depreciation, and amortization), showing how far the company has improved its cost management. Cresco ended its quarter with a working capital of $167.1 million.
The company has poured its resources into Illinois, where its performance was the strongest. Its retail platform, Sunnyside, generated average revenue of $3.6 million per store in the quarter. Illinois has been a welcoming place for marijuana sales after the state legalized recreational use in January of 2020. In that year alone, total cannabis sales reached $1 billion, with 2021’s odds looking juicy for Cresco’s growth.
Curaleaf Holdings (OTC: CURLF)
The Massachusetts-based company has laid a strong foundation in the U.S. cannabis market along with Cresco, with its last quarter of 2020 also showing excellent performance. Its revenue went up to $230 million and has expanded to operate with over 100 stores in 23 states.
Curaleaf is preparing to soar in 2021 and has opened five new stores in 2021. It acquired Grassroots, Curaleaf NJ, Arrow, and Maine Organic Therapy in 2020.
Curaleaf is bound to make bigger profits during the next couple of years with growing revenue and innovative growth optimization strategies.