3 Marijuana Stocks Wall Street Predicts Will Rally by More Than 70%

: CRLBF | Cresco Labs Inc. News, Ratings, and Charts

CRLBF – With increasing legalization at the state level and increasing acceptance of recreational and medical use, the cannabis industry is expected to grow significantly this year and beyond. Wall Street analysts are particularly bullish on cannabis stocks like  Cresco Labs (CRLBF), GrowGeneration Corp (GRWG), and Zynerba Pharmaceuticals (ZYNE).

While marijuana remains prohibited at the federal level, it has gotten wider acceptance for medical and recreational purposes, with an increasing number of states legalizing its use. Moreover, in July 2021, three top U.S. Democratic senators unveiled a discussion draft of a bill that aims to legalize cannabis at the federal level, a move that would allow adults to buy and possess up to 10 ounces of marijuana without facing criminal penalties.

With the increasing use of marijuana to treat chronic diseases and for recreational purposes, the industry is expected to grow in the upcoming months. According to a Grand View Research report, the global legal marijuana market is expected to grow at a CAGR of 26.7% to reach $70.6 billion by 2028.

Given this backdrop, Wall Street analysts expect marijuana stocks Cresco Labs Inc. (CRLBF), GrowGeneration Corp. (GRWG), and Zynerba Pharmaceuticals, Inc. (ZYNE) to rally by more than 70% in the upcoming months. So, it could be wise to add these three stocks to your watchlist.

Cresco Labs Inc. (CRLBF)

CRLBF mainly cultivates, manufactures, and sells retail and medical cannabis products in the United States. It owns and operates 32 dispensaries and 44 retail licenses. One of its famous brands includes the FloraCal brand, which offers cannabis flowers.

On September 23, CRLBF announced a definitive agreement to acquire 100% of the outstanding equity interests in Bay, LLC d/b/a Cure Pennsylvania. This acquisition, which is expected to close in the fourth quarter, is expected to help the company expand its retail footprint in Pennsylvania and increase profitability.

CRLBF’s revenue increased 122.8% year-over-year to $209.97 million in the second quarter ended June 30, 2021. Its gross profit came in at $100.98 million, up 217.7% year-over-year. Its income from operations came in at $14.87 million compared to a loss of $20.94 million. Its net income came in at $2.65 million, compared to a loss of $41.7 million in the prior-year period. Also, its adjusted EBITDA came in at $45.53 million, compared to a loss of $840,000 in the year-ago period.

Analysts expect CRLBF’s revenue to increase 81.6% year-over-year to $864.89 million in fiscal 2021. Also, its EPS is expected to grow more than 94% in the current year. The stock has gained 63.6% over the past year to close yesterday’s trading session at $9.64. Wall Street analysts expect the stock to hit $16.86 in the near term, which indicates a potential upside of 74.9%.

GrowGeneration Corp. (GRWG)

Farm supply company GRWG owns and operates retail hydroponic and organic gardening stores. It engages in the marketing and distribution of horticultural, organics, lighting, and hydroponics products and offers products and services through GrowGen.Pro as well, an online e-commerce store. In addition, it serves commercial and urban cultivators growing specialty crops.

GRWG announced two new hydroponic garden centers on September 15 to serve the largest hydroponic market in Los Angeles County, California. This positions the company favorably to sell to the highest concentration of commercial indoor cannabis growers in California.

For the fiscal second quarter ended June 30, 2021, GRWG’s sales increased 189.7% year-over-year to $125.89 million. Its income from operations came in at $9.61 million, up 242.1% year-over-year. Its net income came in at $6.71 million, up 160.8% year-over-year. Also, its EPS came in at $0.11, representing an 83.3% year-over-year rise.

GRWG’s revenue is expected to come in at $471.64 million in fiscal 2021, representing a 143.9% year-over-year rise. The company’s EPS is expected to increase 318.2% year-over-year to $0.46 in the current year. Over the past year, the stock has gained 79.4% to close yesterday’s trading session at $27.02. Wall Street analysts expect the stock to hit $56.60 in the near term, which indicates a potential upside of 109.5%.

Zynerba Pharmaceuticals, Inc. (ZYNE)

Clinical-stage specialty pharmaceutical company ZYNE is primarily focused on developing pharmaceutically-produced transdermal cannabinoid therapies for rare and near-rare neuropsychiatric disorders. Its development pipeline includes two product candidates: ZYN002 and ZYN001.

On September 13, ZYNE announced the initiation of a pivotal, multinational randomized, double-blind, placebo-controlled, multiple-center efficacy and safety (RECONNECT) Phase 3 trial. Armando Anido, the company’s chairman and CEO, said, “ The RECONNECT trial provides us with an opportunity to confirm the positive results observed in a population of responders in our CONNECT-FX trial and further demonstrate the effect of Zygel on behaviors associated with FXS.”

For the fiscal second quarter ended June 30, 2021, ZYNE’s total operating expenses decreased 55% year-over-year to $9.84 billion. Its loss per share came in at $0.25, compared to $0.78 in the year-ago period. In addition, its total assets came in at $98.20 billion for the period ended June 30, 2021, compared to $74.06 billion for the period ended December 31, 2020, while its total liabilities came in at $10.5 billion for the period compared to $13.91 billion for the period ended December 31, 2020.

ZYNE’s EPS is expected to increase 48.9% in fiscal 2021. Over the past year, the stock has gained 39.6% to close yesterday’s trading session at $4.58. Wall Street analysts expect the stock to hit $8.50 in the near term, which indicates a potential upside of 85.6%.


CRLBF shares were trading at $9.27 per share on Tuesday morning, down $0.37 (-3.84%). Year-to-date, CRLBF has declined -6.03%, versus a 17.59% rise in the benchmark S&P 500 index during the same period.


About the Author: Riddhima Chakraborty


Riddhima is a financial journalist with a passion for analyzing financial instruments. With a master's degree in economics, she helps investors make informed investment decisions through her insightful commentaries. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
CRLBFGet RatingGet RatingGet Rating
GRWGGet RatingGet RatingGet Rating
ZYNEGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


Updated 2024 Stock Market Outlook

The bull market continues to rage on with the S&P 500 (SPY) making new highs. That is the past...the question is what does the future hold? That is why 44 year investment veteran Steve Reitmeister provides this updated 2024 Stock Market Outlook to help you carve a path to outperformance the rest of the year. Read on below for the full story...

3 Energy Stocks Set to Soar Beyond Expectations

Given the geopolitical tensions, increasing global oil demand, and supply adjustments, the energy sector is poised for robust growth. Therefore, investors might consider investing in energy stocks TechnipFMC (FTI), Weatherford International (WFRD), and ChampionX (CHX), which are poised to exceed expectations. Keep reading…

Has Carnival (CCL) Stock Turned Into a Buy After Earnings Release?

Carnival Corporation (CCL) reported record revenue in its most recent quarter but still faces a negative bottom line. The collapse of Francis Scott Key Bridge brings more uncertainty to its financials. Given these events, what stance should one take with CCL stock? Read more to find out…

3 China Stocks Positioned for Long-Term Growth

Despite facing challenges, the Chinese economy has demonstrated resilience, as evidenced by recent robust industrial output and retail sales data. Given this outlook, it might be an opportune time to own three top-notch China stocks, JD.com, Inc. (JD), China Automotive Systems (CAAS), and Youdao, Inc. (DAO). Read on…

Investor Alert: “Buy the Rumor, Sell the News!”

Everyone knows that the Fed is going to cut rates at some point this year. That is the worst kept secret on the planet helping to explain how we keep making new highs for the for the S&P 500 (SPY). Unfortunately that creates an interesting predicament for stocks after rates are cut. Plus another hurdle in the 2024 Presidential election. Steve Reitmeister is here to share his insights on the market outlook along with a preview of his top 12 stocks to outperform. Read on for more...

Read More Stories

More Cresco Labs Inc. (CRLBF) News View All

Event/Date Symbol News Detail Start Price End Price Change POWR Rating
Loading, please wait...
View All CRLBF News