GREEN THUMB INDUS SUB VTG

This past Election Day, all three recreational marijuana legalization ballot initiatives up for a vote failed to pass. That's quite a change from the success similar measures had in past election cycles. Investors sold out of North American weed stocks when the news hit. Clearly, many of them see a dark future ahead for such stocks. Could they be right?
Pot punished
Five state marijuana legalization measures were put before the electorate, three of which would have green-lighted recreational pot. As an added bonus, Massachusetts voters were asked for their yea or nay on the legalization of psychedelic substances like psilocybin and mescaline.
All three of the recreational proposals failed. Voters in both Dakotas effectively said no, as did the population of Florida. Although nearly 56% of respondents in Florida voted yes for theirs, it fell short of the 60% required for passage in that state. Meanwhile, Massachusetts voters rejected the psychedelics measure.
The Florida result was particularly stinging, as the state is the third most populous in the U.S., with more than 22 million souls calling it home.
The pot company that's absorbing the stiffest blow from this defeat is the weed leader of the Sunshine State, Trulieve Cannabis (OTC: TCNNF). According to media reports citing campaign finance records, Trulieve contributed $140 million to Smart & Safe Florida, the political committee making the legalization push. It's little wonder that the company's shares opened 56% lower on the first post-Election Day trading session.
Although Trulieve's support was a reasonable move, the company doesn't have mountains of money to deploy. Like most other publicly traded weed companies, it has struggled with finances -- it's consistently posted net losses in recent quarters.
Trulieve has vowed to keep fighting in its home state of Florida. As of yet, however, we don't know if the company plans to continue providing meaningful financial support to that contest. That ambiguity isn't helping the stock much.
Other publicly traded cannabis companies weren't as intimately involved with any of the latest legalization efforts, and they still suffered. For example, the stock of Illinois-based manufacturer and retailer Green Thumb Industries (OTC: GTBIF) got walloped in that Wednesday rout, as did the less directly exposed pot real estate investment trust (REIT) Innovative Industrial Properties (NYSE: IIPR).
Canadian operators weren't hurt quite as much. Regardless, some notables -- including Tilray Brands -- also took hits to their prices. After all, Tilray and certain peers have some limited operations in the U.S., so the news was disheartening for them too.
And yet...
It's easy to be very bearish on the pot sector after those votes, which suffered in compared to Election Day 2022 (in which two out of the five state measures for recreational legalization passed), and in the green triumph of 2020. That year, all four of the state proposals sailed through.
But let's look at this with a longer-term view, gazing both backward and forward. Ten years ago, widespread recreational legalization would have been inconceivable. The recent setbacks aside, approval has spread quickly and effectively enough to (somewhat) support an entire industry. Even with the recent defeats, recreational pot is fully legal in almost half of U.S. states (24, to be exact). The tally for medical weed is even higher, at 38.
Speaking of medical product, the one bright spot in the 2024 election is that, of the two votes that passed in Nebraska, one legalized medical consumption and sale. So it's not that the legalization train has stopped or reversed -- it's only slowed down.
Looking ahead, on the back of official recommendations, the public overwhelmingly favors legalization and the federal Drug Enforcement Agency (DEA) is considering the reclassification of marijuana from Schedule I to Schedule II.
The DEA has five such schedules, or categories, with 1 assigned to the substances with "no currently accepted medical use and a high potential for abuse." The higher numbers indicate progressively less threatening drugs, at least theoretically.
The DEA was set to hold an administrative hearing on marijuana's rescheduling this year, but it's been pushed back to 2025 at the earliest. Yes, that's frustrating for pot advocates and those in the business, but I think it's inevitable that the agency will reclassify marijuana. This would, in effect, legalize recreational cannabis throughout the land.
Buy, but buy selectively
Full-on legalization is coming, in my view -- it's just not coming immediately. Therefore, all is not lost for the pot industry. In fact, now would be a good time to snap up shares of the better cannabis companies at these depressed prices. Since many continue to struggle, though, investors should be discerning and consider the ones that are in good enough shape to last until Rescheduling Day.
This means the companies that have the deepest reserves of cash resources, combined with at least some demonstrated ability to book profits and put or keep talented top managers in place.
I've been a longtime bull of Innovative Industrial Properties, as it's a good business that not only habitually makes money but (as required to keep its REIT status) pays out nearly all of its profit in the form of dividends. For now, I'd avoid Trulieve, and the Canadian operators coping with tough local markets. In contrast, Green Thumb looks good on the size of its coffers and relatively modest losses of late.
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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Green Thumb Industries, Innovative Industrial Properties, and Tilray Brands. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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Does the Rejection of Top Marijuana Legalization Measures Doom the Pot Industry?

The Russell 2000 Index (RUT) is one of the most popular stock indices, focusing on the performance of U.S. small-cap stocks. It includes smaller, more growth-oriented companies, with market caps generally ranging from $300 million to $2 billion.
These companies are often in the early stages of development, making them somewhat more volatile than better established, larger-cap stocks. However, for most of these small-caps, with greater risk comes higher upside potential if they succeed in their industries. Here are two small-cap stocks that Wall Street believes have significant potential.
#1. Allogene Therapeutics
Allogene Therapeutics (ALLO) is a clinical-stage biotech company that develops allogeneic CAR-T (chimeric antigen receptor T-cell) therapies for cancer and autoimmune diseases. Unlike traditional CAR-T therapies, which use a patient's T cells, Allogene is developing "off-the-shelf" allogeneic therapies derived from healthy donor cells, which may provide faster, more scalable, and cost-effective treatment options.
Allogene stock has dipped 21.7% YTD, compared to the S&P 500 Index’s ($SPX) gain of 15.6% this year.
The majority of the company's candidates are still in early to mid-stage clinical trials. The treatment program for large B-cell lymphoma, cemacabtagene ansegedleucel (cema-cel), is currently in Phase 2 trials. Furthermore, ALLO-316 for the treatment of renal cell carcinoma is in Phase 1 trials. The company is also testing several other candidates in early clinical trials.
As with any biotech company, the success or failure of these trials will significantly impact the company's long-term success.
Since Allogene is still in the clinical stage, it does not generate significant revenue. As a result, it reported a net loss of $66.4 million during Q2, due to higher R&D costs to advance its pipeline. The company's cash and cash equivalents totaled approximately $444.6 million at the end of the quarter. Management believes that this cash reserve will allow for continued operations and clinical development until the second half of 2026. Nonetheless, until Allogene is profitable, it will have to rely on external financing, such as equity raises or partnerships, to fund its long-term expansion strategy.
Overall, analysts have assigned ALLO stock a “moderate buy” rating. The stock’s mean target price is $10.30, which implies expected upside of 312% above current levels. However, the Street-high estimate of $15 represents about 500% upside over the next 12 months. Out of the 18 analysts covering the stock, 12 rate it a "strong buy," one says it's a “moderate buy,” and five maintain a “hold.”
With a market capitalization of approximately $539.2 million, Allogene is a small-cap biotech stock with significant upside potential if its innovative therapies prove successful in clinical trials and eventually receive regulatory approval.
#2. Innovative Industrial Properties
With a market cap of $3.5 billion, Innovative Industrial Properties (IIPR) is a real estate investment trust (REIT) that provides real estate solutions to medical cannabis companies.
IIPR stock has gained 20.4 % YTD, outperforming the broader market's gain.
The domestic cannabis industry is rapidly expanding, as more states are legalizing the drug - whether for medical use, recreational, or both. However, it remains federally illegal, making it difficult for cannabis companies to establish large production facilities.
IIPR purchases these specialized properties and then leases them to cannabis operators, earning rental income in the process. The leases are long-term triple-net lease agreements with an average remaining term of 14.4 years, which guarantees the company recurring revenue. Investing in Innovative also allows investors to get exposure to the cannabis industry without being overly exposed to the higher regulatory risk.
At present, IIPR owns 108 properties across 19 U.S. states. The company's tenants include top multi-state operators (MSOs) such as Green Thumb Industries (GTBIF), Cresco Labs (CRLBF), Trulieve Cannabis (TCNNF), and others. These MSOs contribute 91% of its annualized base rent.
IIPR generated $79.8 million in revenue in the second quarter, representing a 4% increase. As a REIT, the company's earnings are gauged by its AFFO (adjusted funds from operations). In Q2, AFFO rose 1% to $2.29 per share.
As a REIT, Innovative is required to pay out 90% of its taxable income in dividends. It has a forward yield of 6.2%, while the real estate average yield is 4.4%. The company has increased its dividend for the past six years. IIPR raised its dividend by 4.4% to $1.90 per share in the second quarter, paying out 83% of its AFFO.
For the full year, analysts expect the company’s FFO to dip by 1.9%. However, it could increase by 6.4% in 2025.
Overall, analysts have assigned IIPR stock a “moderate buy” rating. IIPR has already surpassed its mean target price of $111.25. However, the Street-high estimate of $140 represents about a 15.3% upside over the next 12 months.
Out of the six analysts covering the stock, two rate it a "strong buy," with four rating it a “hold.”
On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why is Wall Street So Bullish About These 2 Russell 2000 Stocks?

The cannabis industry is rapidly expanding, with the global legalization of medical and recreational cannabis. Though cannabis has been fully legal in Canada for some time, Canadian cannabis companies continue to struggle with profitability. Their American counterparts, on the other hand, have benefited from rapid legalization in many states.
Moreover, Canada is a smaller market than the U.S. The only thing that appears to be standing in the way of cannabis companies' full potential is federal legalization in the U.S.
The Biden administration has been working to reclassify marijuana from Schedule 1 to Schedule 3, which could take some time. Recently, the Drug Enforcement Administration (DEA) delayed the hearing until after the November election. That is a risk because the new administration may not take the same stance on rescheduling.
While reclassification (if and when it occurs) will not benefit cannabis companies in the same way that legalization would, it may open up new opportunities.
Investing in cannabis stocks can be lucrative, but it also carries significant risks. As a result, a solid risk appetite and a long investment horizon are required to reap the benefits. However, not all cannabis stocks can benefit from the industry's growth. Here are two marijuana stocks I'd avoid, and one I'd consider buying right now.
One Cannabis Stock I Would Avoid: Aurora Cannabis
Ever since Canada legalized medical cannabis in 2016, Aurora Cannabis (ACB) has been a favorite for investors. Valued at $322 million, Edmonton-based Aurora Cannabis produces and distributes medical and recreational cannabis.
Aurora moved too fast, too soon, and had a tumultuous journey in the stock market. After peaking during the 2018 cannabis boom, the stock has since fallen sharply. Several factors have contributed to the downturn, including oversupply in the Canadian market, regulatory challenges, and the company's aggressive expansion strategy, which resulted in substantial debt. The stock fell hard, to the brink of being delisted from exchanges. Aurora underwent a reverse stock split in February to avoid being delisted from the Nasdaq stock exchange.
ACB stock is up 26.2%, outperforming compared to the S&P 500 Index's ($SPX) gain of 17.2%, but the stock is down 99% from its all-time high.
Aurora has a history of financial struggles, including significant debt and cash flow issues. Over the last few years, the company has failed to meet its targets for positive adjusted EBITDA (earnings before interest, tax, depreciation, and amortization). However, it eventually achieved its goal.
In the recent first quarter of fiscal 2025, ACB reported adjusted EBITDA of $4.9 million, with revenue growing 12% year on year. Additionally, it generated $6.5 million in free cash flow. While the medical cannabis industry expanded by 13%, consumer cannabis sales fell by 10% year on year.
Furthermore, EBITDA is not a reliable indicator of profitability. The net loss for the quarter stood at $4.8 million. Aurora has been focusing on cost-cutting measures and operational restructuring to become profitable. Despite these efforts, the company continues to face challenges, including a difficult market environment and competition from established players and new entrants. While the company is working to improve its financial position, its inconsistency remains a concern for investors. I would advise you to steer clear of this stock for now.
On Wall Street, ACB stock is a “hold.” Out of the six analysts covering the stock, one rates it a “strong buy,” while five rate it a “hold.” ACB is trading above its average target price of $5.85, while its high target price of $8.03 implies a 33.6% upside potential.
The Second Pot Stock I Would Avoid: Cronos Group
Toronto-based Cronos Group (CRON) produces and distributes cannabis and hemp-derived products for the medical and recreational markets. Cronos has a global presence, including operations in Canada, the U.S., Israel, and other key markets. Like most Canadian cannabis companies, Cronos has faced numerous challenges, and its stock has fluctuated significantly.
Valued at $821.9 million, Cronos stock has gained 5.3% YTD, underperforming compared to the broader market.
A notable chapter in Cronos’ history is tobacco giant Altria’s (MO) investment in the company in 2018. While Altria has yet to reap significant benefits from this transaction, it did provide Cronos with substantial capital and resources to fuel its growth and development. Cronos' stock price skyrocketed following the Altria deal. However, broader challenges in the cannabis industry, such as regulatory hurdles and market saturation, have since dampened investors' enthusiasm.
In the recent second quarter, CRON's total sales increased 46% YoY to $27.8 million, led by 46% growth in Canada and 27% growth in the Israeli and German markets, and initial sales in the U.K. market.
However, the company remains unprofitable. Adjusted EBITDA came in at $11 million, while CRON's net loss stood at $8.7 million in the quarter.
On Wall Street, Cronos stock is a “moderate buy.” Out of the seven analysts covering the stock, three rate it a “strong buy,” three rate it a “hold,” and one rates it a “moderate sell.” Its average target price of $2.81 suggests a potential upside of 27.7% over the next 12 months. CRON has a high target price of $3.65.
The One Cannabis Stock I Would Buy: Green Thumb Industries
Compared to their Canadian cannabis companies, the domestic players are in a better financial position. Illinois-based multi-state operator (MSO) Green Thumb Industries (GTBIF) has been profitable under GAAP (generally accepted accounting principles) for three consecutive years since 2020, a rare feat in the cannabis industry. Furthermore, its revenue has increased from $216 million in 2019 to $1.05 billion in 2023.
Valued at $1.99 billion, Green Thumb’s shares have dipped 17.5% YTD, lagging the broader market.
Being vertically integrated allows Green Thumb to control everything, starting from cultivation, and extending to manufacturing, distribution, and retail. It operates a chain of retail stores — to be precise, 97 stores in 14 U.S. markets — under the brand name Rise. GTBIF's diverse portfolio includes a wide range of medical and recreational cannabis products.
Furthermore, the company's strategic focus on limited-license states, where competition is more tightly regulated, has helped it establish a strong market position and a loyal customer base.
In the second quarter of 2024, net revenue increased 11% to $280 million. In addition, GAAP net income of $0.09 per share increased by 80% over the same quarter last year.
Green Thumb's expansion plans are more strategic than Aurora's. Its emphasis on profitability without burdening the balance sheet sets it apart from many competitors. The company's ability to generate positive cash flow while still investing in growth initiatives is a significant advantage. Furthermore, its low debt-to-equity ratio of 0.33 demonstrates its disciplined financial management. At the end of the second quarter, its cash and cash equivalents totaled $196 million.
Analysts covering GTBIF expect its earnings to grow by 115.7% to $0.32 per share in 2024, further rising by 6.9% in 2025.
On Wall Street, Green Thumb stock is a "strong buy." Out of the 10 analysts who cover the stock, eight rate it a "strong buy," while two call it a "moderate buy." The average target price of $21.34 implies a potential 127.3% increase in the next 12 months. Furthermore, its Street-high estimate of $34.75 implies that the stock could rise by 270% from current levels.
Green Thumb’s strong financial performance, strategic market positioning, and growth potential make it the better choice in the cannabis space, particularly compared to Aurora Cannabis and Cronos.
On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Cannabis Stocks I Would Flat-Out Avoid In 2024, and One I Would Buy

The AdvisorShares Pure Cannabis ETF (YOLO) is that relatively rare exchange-traded fund (ETF) that's gaining attention from penny stock traders, with its price hovering under $5 per share.
This ETF provides a gateway into the cannabis market, which has been buzzing with activity lately. The DEA's pending decision to potentially reschedule marijuana to a less harmful category has given cannabis stocks a boost, particularly as more states move to expand adult use. YOLO, for instance, has racked up an 11.9% gain this year.
Could a Harris Presidency Boost Cannabis Stocks?
Earlier this year brought the start of limited adult use in Germany, a major European market. Adding to the excitement here in the U.S., Vice President Kamala Harris has become a strong advocate for cannabis reform. As the presidential nominee, her support for changes in federal cannabis laws could be a game-changer for companies with a foothold in the domestic industry.
Over the years, Harris has shifted from a more conservative position to becoming a strong advocate for marijuana legalization. This change is evident in her support for key legislative efforts such as the SAFE Banking Act and the Marijuana Opportunity Reinvestment and Expungement (MORE) Act, which seeks to decriminalize marijuana at the federal level, expunge certain cannabis-related convictions, and promote social equity in the industry.
Beyond the impact of any policies from a potential Harris presidency, the proposed reclassification of marijuana from a Schedule I to a Schedule III drug could significantly reduce the tax burdens on cannabis businesses, making the industry more attractive to investors. Plus, technological advancements such as blockchain and artificial intelligence (AI) are expected to revolutionize supply chain management and compliance tracking, further enhancing operational efficiencies within the sector.
The cannabis market is also set to benefit from product innovations and the expansion of legal markets. The trend towards personalized cannabis products is gaining traction, as consumers become more educated and discerning in their choices. Moreover, states like Kentucky are finalizing details to enter the market, contributing to the projected U.S. growth to $53.5 billion by 2027.
With these developments as a backdrop, the cannabis industry looks poised for growth, as years of regulatory overhang could finally be poised to clear in a meaningful way. YOLO might still be a speculative play, but for those willing to stomach the volatility, this ETF offers a chance to tap into the potential growth of the cannabis industry, while mitigating some of the risk involved in single-stock investments.
Overview of AdvisorShares Pure Cannabis ETF
The AdvisorShares Pure Cannabis ETF (YOLO), launched on April 17, 2019, is an innovative exchange-traded fund that provides investors with exposure to the cannabis industry. It is actively managed, meaning that the fund manager selects and manages a portfolio of cannabis-related stocks, rather than tracking a specific index. Unlike its U.S.-focused counterpart, YOLO invests in both domestic and foreign cannabis equities, as well as total return swaps of similar securities.
The ETF's assets under management (AUM) stand at $45.15 million, making it a smaller player among an already-small ETF niche. YOLO isn't the most actively traded cannabis ETF, either, with its average volume around 48,000 shares a day. Likewise, while the fund is optionable, trading puts and calls on YOLO is not for the faint of heart; volume is thin enough to result in extremely wide bid/ask spreads.
With YOLO down 89% from its February 2021 highs, YOLO now trades in penny stock territory, below $5 per share. However, the ETF has demonstrated resilience since setting a record low last October, up 42% since then. This suggests that YOLO's long slide just may have found bottom.
In fact, the current Net Asset Value (NAV) of YOLO is reported at $3.52, suggesting the ETF is trading at a discount right now - and offering an attractive entry point for prospective investors.
For income investors, YOLO offers a dividend yield of 1.70%, based on its annualized dividend of $0.06. While not a high-yield play, this quarterly dividend adds a little more appeal to the ETF's growth potential.
What's the YOLO Strategy?
YOLO's strategy focuses on providing investors with actively managed exposure to the global cannabis ecosystem. The fund's portfolio includes a mix of companies involved in various aspects of the cannabis industry, from cultivation and retail to ancillary services and biotechnology.
In fact, leading the portfolio is none other than the AdvisorShares Pure U.S. Cannabis ETF (MSOS), which constitutes a hefty 39.94% of the fund. Top holdings of that ETF, for the record, include Green Thumb (GTBIF), Trulieve Cannabis (TCNNF), Curaleaf (CURLF), Verano (VRNOF), and Cresco Labs (CRLBF).
Next up behind MSOS in the YOLO ETF is Village Farms International Inc. (VFF) at 8.72%, and High Tide Inc. (HITI) at 8.19%. Sndl Inc. (SNDL) makes up 6.90% of the ETF, while biotech Cardiol Therapeutics (CRDL) rounds out the top five with a 6.49% allocation. This strategic approach, ranging from cultivators to biotechs, allows YOLO to capitalize on the industry's expansion while mitigating some of the risks associated with investing in individual cannabis stocks.
The fund's advisory fee is 0.88%, which is relatively competitive for a specialized sector ETF, particularly given the reduction by acquired fund fees and expenses related to investments in the AdvisorShares Pure US Cannabis ETF.
Conclusion
In summary, the cannabis industry is on the cusp of significant transformation, fueled by evolving regulatory landscapes and influential political support. The YOLO ETF offers an intriguing and cheap opportunity to tap into this dynamic market, providing exposure to various cannabis companies. While the road ahead may be speculative - and lightly traded - the potential rewards make it a compelling consideration for those looking to ride the green wave of change.
On the date of publication, Ebube Jones did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

1 Cannabis ETF for Penny Stock Traders to Consider

In an unpredictable stock market, dividend stocks can serve as a safe haven. These companies distribute a portion of their earnings to shareholders on a regular basis, usually quarterly or monthly. Furthermore, dividend-paying stocks can appreciate in value, resulting in long-term capital gains.
These stocks are suitable for long-term investors who seek consistent income and growth, rather than gains in the short term. Here, we'll be delving into real estate investment trusts (REITs), which are legally required to pay out 90% of their taxable income to shareholders in the form of dividends. As a result, they make an appealing dividend choice for investors seeking passive income.
In the case of REITs, AFFO (adjusted funds from operations) is considered when determining a company's ability to pay dividends. AFFO, like net income for non-REITs, measures how much of the company's earnings can be paid out as dividends.
Here are three REIT dividend stocks that you might want to consider right now.
Dividend Stock No 1: Realty Income
Realty Income Corporation (O), also known as "The Monthly Dividend Company," is a REIT that invests in single-tenant retail and commercial properties. It then leases them out to tenants in a variety of industries. The company's tenant base is diverse, spanning industries such as retail, industrial, and healthcare. This diversification protects it from industry-specific challenges and provides a recurring source of income.
Valued at $50.5 billion, O stock has gained 1.4% year-to-date (YTD), compared to the S&P 500 Index’s ($SPX) gain of 14.5%.
The company's long-term lease agreements typically have a weighted average lease term of 9.7 years, indicating recurring revenue. The company is known for paying a monthly dividend, hence its nickname, "The Monthly Dividend Company." It recently increased its monthly dividend to $0.2630 per share from $0.2625.
By paying dividends for 29 consecutive years, Realty Income is now included in the S&P Dividend Aristocrat Index. This strong track record also showcases the safety of its dividends.
Realty's forward dividend yield of 5.4% is higher than the real estate sector average of 4.4%. The forward FFO payout ratio of 74.1% appears to be high, but it is manageable if the company continues to increase its FFO and generate positive FCF.
In the first quarter, Realty's AFFO increased by 5% year over year. Management expects AFFO to rise by 3.2% to 5.2% in 2024. Analysts predict that Realty Income's FFO will increase by 3.56% in 2024 and another 4.19% in 2025.
Overall, analysts have an average rating of “moderate buy” for O stock. Based on its mean target price of $61.23, the stock has an upside potential of 5.3% from current levels. Plus, its high target price of $69 implies that the stock could rise as high as 18.6% over the next 12 months.
Out of 19 analysts covering the stock, seven have a “strong buy” rating, one has a “moderate buy” rating, and 11 have a “hold” rating.
Dividend Stock No 2: Innovative Industrial Properties
The cannabis industry is rapidly expanding, providing tremendous opportunities for investors. Nonetheless, the drug is still federally illegal, making investors wary of getting involved in the industry. One way to help mitigate this risk is by investing in companies linked to the cannabis sector. Innovative Industrial Properties (IIPR), also known as IIP, is one such unique REIT that has capitalized on the growing demand for medical-use cannabis by offering real estate solutions tailored to the cannabis industry's needs.
Valued at $3.48 billion, IIPR stock has gained 22.5% YTD, edging past the broader market.
IIP focuses on the acquisition, ownership, and management of specialized properties, which are then leased to regulated state-licensed cannabis operators under long-term triple-net lease agreements of 14.6 years. In return, the company receives rental income. IIP has 108 properties (operational and under development/redevelopment) in 19 states. Its tenants include well-known cannabis companies such as Cresco Labs (CRLBF), Trulieve Cannabis (TCNNF), Green Thumb Industries (GTBIF), and more.
In 2023, Innovative's AFFO increased by 7% year-on-year compared to 2022. However, in the most recent first quarter, AFFO fell by 2% year over year. IIP pays a forward dividend yield of 6.18%, much higher than the real estate average. The company distributed a quarterly dividend of $1.82 per share (82% of its AFFO) during the quarter.
IIP's forward FFO payout ratio of 90.2% is quite high. Unless IIP continues to increase its AFFO, this payout will be difficult to sustain. The company has increased its dividend over the last six years. Analysts expect FFO to fall by 1.8% in 2024 before rising by 4.18% in 2025, respectively.
Overall, analysts have assigned IIPR stock a “moderate buy” rating. The stock has surpassed its mean target price of $108.75. However, the Street-high estimate of $140 represents about a 13.3% increase from current levels.
Out of the six analysts covering the stock, two have a "strong buy" rating, and four rate IIPR a "hold."
Dividend Stock No 3: American Tower
American Tower Corporation (AMT) is a REIT that owns and develops wireless and broadcast communications real estate. It provides wireless communication infrastructure, such as towers and distributed antenna systems (DAS), among other technologies. The company operates on multiple continents, generating diverse revenue streams and reducing reliance on a single market.
Valued at $99.8 billion, American Tower stock is down 0.4% YTD, lagging the overall market.
In the first quarter of 2024, AFFO increased by 9.8% year on year to $2.79 per share. The company generated $882 million in free cash flow during the quarter.
American Tower has a forward dividend yield of 3.03%, which exceeds the real estate average. Its FFO payout ratio of 61.5% suggests that dividends are currently sustainable and have room to grow. Notably, AMT has increased its dividends for the last 11 years.
In 2024, the company expects AFFO to increase by approximately 5.6%. Similarly, analysts expect American Tower's FFO to increase by 7% in 2024 and 2.6% in 2025.
Analysts have assigned a mean target price of $227.16 to AMT, implying 5.7% upside potential from current levels. The high target price of $248 further indicates a 15.4% upside over the next 12 months.
Overall, analysts have an average rating of “strong buy” rating for AMT stock. Out of 20 analysts covering the stock, 15 have a “strong buy” rating, one has a “moderate buy” rating, and four suggest it is a “hold.”
On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Best REIT Dividend Stocks to Buy Now

While artificial intelligence (AI) is one area where investors are looking for rapid growth, other industries can be just as beneficial in the long run.
Cannabis is one such hypergrowth industry, with rapid expansion driven by increased legalization and social acceptance in various regions. According to experts, the global cannabis market is expected to grow at a 34% compound annual growth rate to $444.3 billion by 2030.
Cannabis stocks can be highly volatile, with prices fluctuating significantly in response to news, regulatory changes, and market sentiment. The only thing holding U.S. cannabis companies back from reaching their full potential is federal legalization.
However, the Biden administration recently announced that marijuana will be reclassified from a Schedule 1 to a Schedule 3 drug. While reclassification is not the same as legalization, it will open up many new opportunities for cannabis companies, boosting profits.
Cannabis stocks can be a good investment for those with a high-risk appetite and a long-term investment horizon to reap potentially greater rewards. However, not all cannabis stocks are created equal.
Here are two cannabis stocks that I believe will make good long-term investments, despite the bumpy ride.
Green Thumb Industries Stock
Despite the challenges of the cannabis industry, Green Thumb Industries (GTI) (GTBIF) has piqued Wall Street's interest by being profitable every year since 2020 under GAAP. Its revenue has risen from $216 million in 2019 to $1.5 billion by 2023.
Illinois-based Green Thumb is a vertically integrated cannabis company, which means it controls every aspect of its production and distribution process. It operates 93 stores in 14 U.S. markets under the retail name Rise, offering a wide range of cannabis products under the brands Beboe, Dogwalkers, incredibles, RHYTHM, and more.
Green Thumb’s shares have risen 4.7% YTD, compared to the S&P 500 Index’s ($SPX) gain of 13.5%.
In the first quarter of 2024, net revenue rose 11% to $276 million. GAAP net income of $0.13 per share increased by 225% over the previous year's quarter.
The company targets limited license markets, which award licenses to specific cannabis operators, allowing it to strengthen its brand presence. Green Thumb also expanded steadily without jeopardizing its balance sheet. Its low debt-to-equity ratio of 0.33 demonstrates this, reflecting the company's careful debt management practices.
Management stated on the Q1 earnings call that, despite pricing pressures, the company is focused on scaling the business through retail store expansion and investing in quality products and premium brand experiences, all while managing the balance sheet. The company's cash and cash equivalents totaled $223.9 million at the end of the quarter.
Analysts covering GTI predict revenue growth of 6.6% in 2024 and 7.4% in 2025. Furthermore, analysts expect Green Thumb to be profitable in 2024 and 2025.
Wall Street rates Green Thumb stock as a "strong buy." Ten of the twelve analysts who cover the stock rate call it a "strong buy," while two call it a "moderate buy."
The average analyst target price of $19.63 implies a potential 64.5% increase in the next 12 months. Furthermore, its Street-high estimate of $34.75 implies that the stock could rise 190.8% from current levels.
Cresco Labs Stock
Like GTI, Illinois-based Cresco Labs (CRLBF) is also a vertically integrated cannabis company. Cresco Labs has rapidly expanded its footprint across the country with 72 stores, becoming a significant player in the burgeoning cannabis industry.
The lack of federal legalization continues to weigh on the cannabis market, resulting in oversaturation. As a result, in Cresco's recent first quarter, revenue came in flat year-over-year at $184 million. However, adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) grew 82% year over year to $53 million. Net loss narrowed by a huge margin to $2 million compared to $27 million in the year-ago quarter.
Cresco’s shares have gained 27.6% YTD, compared to the broader market.
Cresco Labs has established a strong presence in key cannabis markets across the country. It offers a diverse range of medical and recreational cannabis products. Its flagship brands, including Cresco, Remedi, Mindy's, Good News, and High Supply, have built a loyal customer base, which is critical for any consumer goods business.
Cresco’s debt-to-equity ratio of 1.24 implies its heavy reliance on debt. At the end of Q1, it had cash and cash equivalents totaling $125 million and a senior secured term loan debt of $387 million. Cresco generated $33 million in free cash flow in the quarter. Consistent profits and free cash flow should help the company manage its debt levels.
For the full year 2024, analysts forecast that Cresco’s revenue will dip by 3.3% to $745.3 million, before rising by 6.4% to $793.1 million in 2025.
Overall, Wall Street remains bullish about Cresco's long-term potential, and analysts have rated it a "strong buy” overall. Of the 10 analysts covering CRLBF, seven have a “strong buy” recommendation, one has a “moderate buy” rating, and two suggest a “hold.”
Analysts’ average price target of $4.37 represents a potential upside of about 152.6% from current levels. Furthermore, its high target price of $14.32 suggests the stock has the potential to rally by 727%.
On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Growth Stocks With 64% to 152% Upside in 2024

The cannabis industry represents a huge growth opportunity for not just investors, but companies in other industries as well. But due to the federal ban on pot, many companies shy away from trying to collaborate or engage in mergers and acquisitions with marijuana producers.
However, rumors are swirling that there could be a fairly significant deal on the horizon, one which involves a major pot producer and a top brewer. If it ends up happening, it could become a game changer for the cannabis industry, perhaps even paving the way for more companies to end up following suit.
Boston Beer and Green Thumb to merge?
Boston Beer (NYSE: SAM), the company behind the popular Samuel Adams brand of beer, is reportedly in discussions about merging with cannabis producer Green Thumb Industries (OTC: GTBIF). A report from the The Wall Street Journal suggests that Green Thumb is expected to make an offer for Boston Beer, which would see the two companies merge.
With its $3.5 billion in market value, Boston Beer is the larger of the two companies, with Green Thumb's valuation right around $2.9 billion. And there could be a lot of potential for the businesses to get much larger, as the cannabis beverage market is an enticing one, with analysts at Fortune Business Insights projecting that it will grow massively from just $3 billion in 2024 to more than $117 billion by 2032 -- rising at a compound annual growth rate of 57.5% during that stretch.
Green Thumb, however, has issued a release saying that it doesn't comment on rumors.
Why the deal might not be a slam dunk
The biggest obstacle to any deal -- if there is one -- is that marijuana remains federally banned in the U.S. And that's why a pot stock such as Green Thumb can't trade on a major exchange such as the NYSE or the Nasdaq. The rescheduling of cannabis from a Schedule I substance down to Schedule III, assuming it ends up happening, could help lower the tax bill for pot producers and make it easier to research cannabis, but it falls short of legalization and may not lead to cannabis companies being able to trade on a top U.S. exchange.
If that's the case, it could be difficult to see a merger happening as it would mean the combined entity likely wouldn't be able to trade on the NYSE -- and Boston Beer shareholders may not be thrilled with that prospect. While there are Canadian-based cannabis stocks that trade on the Nasdaq, it's because pot isn't illegal in Canada (it was legalized in 2018). But for U.S.-based cannabis stocks, the federal ban prevents them from trading on a top U.S. exchange.
Despite the potential synergies that could be achieved from Boston Beer and Green Thumb merging, it may not be an easy deal to pull through. It could end up being an informal one, similar to the agreement Canadian-based Canopy Growth reached with Acreage Holdings, a multi-state operator in the U.S., back in 2019, where they agreed in principle to combine their businesses once it was federally permissible to do so.
It was just this year that Canopy Growth moved ahead with exercising that option. But even in that situation, it does not consolidate the businesses, and it utilizes a separate special purpose vehicle, Canopy USA, to complete the deal.
A huge catalyst for Green Thumb if it happens
Green Thumb has been one of the better-performing cannabis stocks in recent years. Not only has it been growing, but it's also profitable -- a rarity in the industry. Year to date, however, it's up a modest 8% thus far. By merging with Boston Beer, even if it comes with an asterisk, and it's a pending one based on legalization in the future, it could shine a spotlight on the cannabis industry, and Green Thumb in particular.
It's risky to invest in cannabis, and potentially even riskier to invest based on the hopes of a rumored deal. But with Green Thumb a profitable company and a leading marijuana producer, it's one of the safer stocks to buy and hold if you're bullish on marijuana legalization.
Even if the deal with Boston Beer doesn't materialize, there could be many more opportunities down the road, given Green Thumb's strong position in the industry. There's a lot of growth potential in cannabis in the long run, and this can be a good stock to buy right now, provided that you're OK with some volatility and uncertainty.
Should you invest $1,000 in Green Thumb Industries right now?
Before you buy stock in Green Thumb Industries, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Green Thumb Industries wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $740,886!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
See the 10 stocks »
*Stock Advisor returns as of June 10, 2024
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Boston Beer and Green Thumb Industries. The Motley Fool recommends Nasdaq. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

There's a Major Deal Brewing Between a Top Cannabis Producer and a Leading Beer Maker

The Drug Enforcement Administration is looking to reschedule marijuana from a Schedule I substance down to Schedule III. The move would mean marijuana is no longer grouped in with ecstasy, heroin, and other harmful substances, and it would be a recognition that there is some medicinal benefit to using pot.
For U.S.-based cannabis companies, it would be a big win as it would mean they would be able to make more tax deductions since Section 280E of the tax code would no longer apply.
Three of the largest multi-state operators (MSOs) that would have the most to gain from the rescheduling of cannabis are Curaleaf Holdings (OTC: CURLF), Green Thumb Industries (OTC: GTBIF), and Trulieve Cannabis (OTC: TCNNF). Here's a look at each company.
1. Curaleaf Holdings
Curaleaf is one of the largest MSOs in the country, with 145 dispensaries in 17 states. It has approximately 1.4 million square feet of cultivation capacity. And in addition to the U.S. market, the company has been growing its presence internationally, recently making its first wholesale shipment to the Czech Republic.
Over the trailing 12 months, Curaleaf has generated nearly $1.4 billion in revenue, and it incurred a net loss of $275.1 million. Included in that is a tax provision totaling $113.9 million. The cannabis producer does, however, consistently post an adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) profit; for the first three months of the year, its adjusted EBITDA margin was 23%, and in the period before that, it was 24%.
By lowering its tax bill, Curaleaf will be in a position to improve upon on its bottom line. Chairman Boris Jordan previously referred to 280E as "unfair" and "unconstitutional" for the company to be saddled with such a burden, even going as far as suggesting that the cannabis industry should consider not paying it in protest.
This year, Curaleaf's stock is up more than 10%, but over a five-year period, its shares are still down 40%. At a price-to-sales multiple of 2.4, the stock isn't expensive and does have room to rise higher, should investors grow more bullish on the cannabis industry and look to invest in one of the country's top producers.
2. Green Thumb Industries
A company that's already profitable today is Green Thumb Industries. Its footprint is smaller than Curaleaf's, as Green Thumb has 93 retail locations and it's in 14 U.S. markets. Its focus on offering a variety of branded cannabis products has allowed it to reach a wide range of customers.
Green Thumb has generated roughly $1.1 billion in sales over the past four quarters, and despite taxes accounting for nearly 11% of its top line, the company has still managed to post a profit of $58.2 million over that time frame. It also generated $234.3 million in operating cash flow.
Green Thumb's stronger financials have made it one of the better buys in the industry, as the pot stock is in positive territory over the past five years with a gain of around 1%. It's modest, but it's still impressive in an industry where many stocks are often deeply in the red.
Rescheduling would help boost its profits and make it an even better buy. It trades at 2.6 times its trailing revenue.
3. Trulieve Cannabis
This month, Trulieve will reach a milestone by opening its 200th dispensary in the country. It will take place on June 14 in Brooksville, Florida. It's by far the largest cannabis retailer, with its footprint easily surpassing both that of Green Thumb and Curaleaf.
Trulieve too has a lot to gain from cannabis rescheduling and relief from 280E. The company's chief financial officer Wes Getman says that Trulieve would stand to benefit significantly from a lower tax bill, adding, "If the 280E burden is lifted, Trulieve could realize hundreds of millions of savings in the next few years."
Over the trailing 12 months, Trulieve's sales have totaled $1.1 billion, and it has paid $171.3 million in taxes. During that time, the company has incurred a loss of $485.8 million, but that also includes a particularly bad quarter a year ago when Trulieve reported a goodwill impairment charge totaling $307.6 million.
If the company can reduce its taxes, its prospects for profitability would improve significantly. Despite its massive expansion over the years, Trulieve has also been an underwhelming stock to own -- in five years, its shares have fallen by 11%.
The rescheduling of cannabis could result in a more favorable outlook on MSOs, resulting in a better valuation for the stock. At just 1.5 times revenue, Trulieve is the cheapest stock on this list in terms of sales.
Should you invest $1,000 in Curaleaf right now?
Before you buy stock in Curaleaf, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Curaleaf wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $740,688!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
See the 10 stocks »
*Stock Advisor returns as of June 3, 2024
David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Green Thumb Industries and Trulieve Cannabis. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

3 Stocks That Will Benefit the Most From Cannabis Rescheduling

Short-term unpredictability has been the name of the game on Wall Street since this decade began. The first four years of the decade saw all three major stock indexes pivot between bear and bull markets in successive years, with no index enduring wilder swings than the innovation-fueled Nasdaq Composite (NASDAQINDEX: ^IXIC).
During the 2022 bear market, the Nasdaq lost a third of its value. But since the green flag waved in 2023, the Nasdaq Composite has surged higher by 61% and notched multiple record-closing highs. There's absolutely no doubt that this growth-focused index is squarely in a bull market, albeit a fairly young one.
While some investors might be apprehensive about putting their money to work on Wall Street with the Nasdaq Composite at an all-time high, history shows that every stock market correction and bear market throughout history in the major indexes has eventually been cleared away by a bull market rally. This is to say that any time can be an opportune time to put your money to work on Wall Street if you're a long-term investor.
Furthermore, value can be found -- even among growth stocks. Investors simply have to be willing to search for these hidden treasures.
What follows are four unparalleled growth stocks you'll regret not buying in the new Nasdaq bull market.
Amazon
The first exceptional growth stock investors can confidently add to their portfolios, even with the Nasdaq running to fresh highs, is e-commerce leader Amazon (NASDAQ: AMZN). Despite select predictive indicators and money-based metrics signaling a heightened risk of a U.S. recession, Amazon's most-important operating segments are perfectly positioned to thrive.
Although Amazon is best known for its online marketplace, which brought in an estimated 37.6% of U.S. online retail sales in 2023, the company generates most of its operating cash flow and income from segments that aren't necessarily as consumer-facing.
Nothing is more important to Amazon's future than the continued growth of Amazon Web Services (AWS), the world's top cloud infrastructure service platform, with an estimated 31% share as of the end of 2023, per tech-analysis firm Canalys.
Though AWS recently surpassed $100 billion in annual run-rate sales, enterprise cloud spending is still in its early innings of forecast growth. AWS regularly accounts for 50% to 100% of Amazon's operating income and is the segment fueling its cash-flow growth.
Advertising services and subscription services are vital for Amazon, too. Advertising hasn't grown by less than 20% on a year-over-year basis in more than two years. Meanwhile, the company has strong subscription pricing power with Prime. In exchange for simple perks, such as free two-day shipping on most items from its online marketplace, it encourages more than 200 million subscribers worldwide to stay within its ecosystem of products and services.
Amazon also remains historically inexpensive. Shares can be purchased right now for about 12 times consensus cash flow for 2025. That's a marked discount to the multiple of 23 to 37 times year-end cash flow that investors willingly paid to buy shares throughout the 2010s.
DocuSign
A second unparalleled growth stock you'll regret not buying with the Nasdaq in a young bull market is electronic-signature company DocuSign (NASDAQ: DOCU).
In recent months, there's been speculation that DocuSign could be acquired and taken private. But CEO Allan Thygesen said an interview with CNBC this past week that his company intends to remain public. While short-term traders who had been banking on a buyout might not be thrilled with these comments, long-term investors should rejoice.
One reason to be thrilled about DocuSign remaining public is its moat in e-signatures. According to Datanyze, DocuSign accounts for more than 67% of the e-signature market. While growth in e-signatures has slowed a bit following the worst of the pandemic and with interest rates climbing (i.e., fewer loans and mortgages are being underwritten), a double-digit long-term growth trajectory is likely for the global e-signature software market.
Another reason to trust in DocuSign is the company's balance sheet. During its January-ended quarter (DocuSign's fiscal year ends on Jan. 31), it repaid the entirety of its outstanding convertible debt. The roughly $1.2 billion in cash, cash equivalents, and restricted cash and investments the company was sitting on to begin fiscal 2025 gives it the flexibility to innovate internally, as well as grow inorganically.
For example, just three weeks ago, the company announced a $165 million all-cash acquisition of Lexion, an agreement-management software company driven by artificial intelligence. Incorporating agreement management into its suite of existing services has the potential to lift DocuSign's growth rate and expand its sales channels.
And its forward price-to-earnings (P/E) ratio of 16 is a bargain for a growth stock with a well-defined moat.
Green Thumb Industries
A third matchless growth stock you'll be kicking yourself for not purchasing during the new Nasdaq bull market is cannabis multi-state operator (MSO) Green Thumb Industries (OTC: GTBIF).
The big buzz for marijuana stocks is that a long-awaited rescheduling of cannabis appears to (finally) be at hand. This past week, the U.S. Drug Enforcement Administration published its formal proposal that would see cannabis move from a Schedule I controlled substance to a less-stringent Schedule III controlled substance.
While moving cannabis to Schedule III won't legalize it for recreational purposes, it would no longer subject cannabis-touching businesses, including MSOs, to Section 280E of the U.S. tax code. Section 280E only allows businesses dealing with Schedule I and II controlled substances to deduct cost of goods sold. If and when this move is made official, MSOs like Green Thumb will owe far less in federal tax, which should translate into faster earnings growth.
What separates Green Thumb from a sea of other MSOs is its product mix. During the first quarter, it generated 57% of its sales from derivatives, which include vapes, edibles, pre-rolls, concentrates, beverages, and health and beauty products. Derivatives have higher prices and substantially better margins than traditional dried cannabis flower. This product mix has played a key role in making Green Thumb profitable.
Green Thumb Industries also has a presence in many of the top-selling cannabis states, including California, Florida, and Illinois. It has 93 operating dispensaries in 14 states, and its back pocket is full of retail licenses that can be used to further expand its dispensary footprint in key markets.
Visa
A fourth unparalleled growth stock you'll regret not buying in the new Nasdaq bull market is payment processor Visa (NYSE: V). Although it is subject to the same cyclical headwinds that have some investors skeptical about Amazon, Visa's clear-cut competitive advantages make it a surefire buy for those with a long investment horizon.
For instance, Visa benefits from disproportionately long periods of economic growth. Even though recessions are a normal and inevitable part of the economic cycle, they tend to be short-lived. By comparison, most economic expansions endure for multiple years. For Visa, it means extended periods of consumers and businesses increasing their spending.
To add to this point, Visa's management team has purposely avoided becoming a lender. Since it's entirely focused on facilitating transactions, the company doesn't have to worry about possible credit delinquencies and loan losses when economic downturns take shape. Not having to set aside capital to cover these potential losses is a big-time advantage in the financial sector.
Similar to the other companies on this list, Visa's growth runway stretches years into the future, if not decades. Aside from being the top dog in the U.S. in terms of credit-card network purchase volume, it has the opportunity to expand its payment infrastructure into chronically underbanked regions of the world, such as the Middle East, Africa, and Southeast Asia. Cross border volume surged 16% in its March-ended quarter.
Should you invest $1,000 in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $635,982!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of May 13, 2024
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Sean Williams has positions in Amazon and Visa. The Motley Fool has positions in and recommends Amazon, DocuSign, Green Thumb Industries, and Visa. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

4 Unparalleled Growth Stocks You'll Regret Not Buying in the New Nasdaq Bull Market

Marijuana companies are known to be risky investments. U.S.-based marijuana businesses operate in a quasi-legal environment where cannabis can be both illegal at the federal level but still legal in certain states. It can make for a confusing situation for investors who aren't familiar with the industry. The short answer is that the federal government effectively chooses to let the individual states do what they want with respect to marijuana, even though it could technically step in and shut marijuana companies down.
The problem, however, is that creates a really challenging environment for many marijuana companies. If they're operating in Washington State and Oregon, for instance, they are OK to do so within those bubbles. But they can't legally transport cannabis across state lines. This is just one example of the inefficiency and additional costs this brings to a marijuana company looking to be a dominant player; growth isn't easy as there's no logistical advantage to be operating in neighboring states.
This is why turning a profit can be particularly impressive in the industry. Two marijuana producers that recently posted profits, however, are Cresco Labs (OTC: CRLBF) and Green Thumb Industries (OTC: GTBIF). Here's a look at how they have been able to avoid staying out of the red.
Cresco Labs
On March 13, Cresco Labs reported a strong finish to 2023, highlighting improvements in both its bottom line and operating cash flow. For the last three months of the year, Cresco Labs's revenue wasn't all that exciting, however, with sales of $188 million falling 2% from the prior-year period.
But the big news was that the company reported a profit of $5 million. This wasn't an adjusted profit that cannabis investors are used to, this was a real net profit. The company's earnings improved as Cresco was able to reduce its selling, general, and administrative expenses by more than $23.4 million (29.2%). The company also benefited from a higher gross profit margin (51.1% versus 43.9%) and it didn't incur huge impairment charges as it did a year ago when they totaled $140.7 million.
As a result of its cost-cutting efforts, the company also generated positive operating cash flow of $58.6 million for the full year, up from just $18.7 million in 2022. And free cash flow for the year was a positive $5.8 million compared with a negative $60.1 million in the previous year.
Trading at a price-to-revenue multiple of about 1, Cresco Labs is one of the better-priced cannabis stocks to buy. And with big improvement in cash flow and earnings, the business looks to be on a promising path forward.
Green Thumb Industries
Posting a profit is less of a surprise for Green Thumb Industries, which has typically been one of the more reliable companies in the marijuana industry.
It reported its year-end results on Feb. 28 and not only did it turn a profit, but it was able to generate an increase in its top line. Revenue of $278.2 million for the last three months of 2023 rose 7.3%. During the period, the company opened six dispensaries in Florida and one in New York.
Green Thumb's quarterly net income was $3.2 million, which was an improvement from the $51.2 million loss it incurred a year ago. The company's expenses did actually increase this quarter but the key difference was that Green Thumb didn't incur any impairment charges; a year ago, they totaled $88.5 million and were easily enough to land the company in the red. The company's full-year net income of $36.3 million was triple the $12 million that Green Thumb reported for 2022.
Its strong and diversified brands have been a key part of Green Thumb's success, by allowing it to grab significant market share and revenue without having to incur excessive costs or be in the most states. The company is in 14 states and has 91 dispensaries.
At more than 3 times trailing revenue, Green Thumb is a more expensive stock to own than Cresco, but it can still be a good long-term buy for investors bullish on the cannabis industry.
Should you invest $1,000 in Cresco Labs right now?
Before you buy stock in Cresco Labs, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Cresco Labs wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. The Stock Advisor service has more than tripled the return of S&P 500 since 2002*.
*Stock Advisor returns as of March 25, 2024
David Jagielski has positions in Cresco Labs. The Motley Fool has positions in and recommends Cresco Labs and Green Thumb Industries. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

GREEN THUMB INDUS SUB VTG

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