3 Cannabis Stocks Wall Street Predicts Will Rally By at Least 25%

: TCNNF | Trulieve Cannabis Corp. News, Ratings, and Charts

TCNNF – The rapid pace of legalization at the state level and meaningful progress on cannabis decriminalization at the federal level make Wall Street optimistic about the upside potential of several fundamentally sound stocks in this space. Three examples of these stocks that analysts believe are well positioned to rally by at least 25% over the next 12 months are: Trulieve Cannabis (TCNNF), Cresco Labs (CRLBF), and KushCo Holdings (KSHB). Read on.

Once deemed as illicit, cannabis consumption is now well on its way to the mainstream. More than a dozen states have already legalized marijuana for recreational use. And last month, Gov. Andrew Cuomo signed legislation passed by state lawmakers to legalize recreational marijuana in New York. The legislation will expand New York’s existing medical, adult-use marijuana and cannabinoid hemp programs and formulate licensing for cannabis producers.

The Virginia legislature recently passed a bill to legalize simple possession of marijuana and limited home growth, effective July 1, 2021. This makes it the first state in the South and the 17th state overall to legalize recreational cannabis. Although under federal government guidelines cannabis is still considered a controlled substance. But changing societal attitudes towards it, particularly due to its medicinal benefits, have buttressed the widespread legalization push.

This, along with the advocacy of federal decriminalization by governors of many states, makes Wall Street analysts optimistic about the industry’s prospects. Based on  consensus price targets, Trulieve Cannabis Corp. (TCNNF), Cresco Labs Inc.  (CRLBF), and KushCo Holdings, Inc.  (KSHB) are expected to rally at least 25% over  the next 12 months.

Trulieve Cannabis Corp. (TCNNF)

TCNNF is a medical cannabis operator, based in Quincy, Fla. It cultivates and produces products in-house and distributes its products to Trulieve branded stores in California, Massachusetts, Connecticut, Pennsylvania, Florida, and West Virginia. The company also sells its products directly to patients through home delivery.

This month, TCNNF acquired Solevo Wellness West Virginia LLC and its three West Virginia dispensary permits for $650,000. This should solidify the company’s position in the West Virginia Market. On April 12, the company administered public offering of five million subordinate voting shares in the United States and Canada. TCNNF plans to use the offering’s  proceeds  to fund  business ‎development and for general working capital purposes‎. 

TCNNF’s total revenue increased 111% year-over-year to $168.4 million in the fourth quarter, ended December 31, 2020. Its gross profit was $119.9 million compared to $64.7 million in the fourth quarter of 2019. The company’s adjusted EBITDA increased 79% from its year-ago value to $78.2 million.

A consensus EPS estimate of $0.24 for the quarter ending June 30, 2021 represents a 300% improvement year-over-year. The consensus revenue estimate of $853.21 million for the current year represents a 63.6% increase from the same period last year. TCNNF’s stock has gained 311.2% over the past year.

Nine Wall Street analysts have  provided ratings for the stock and  all have rated it Strong Buy. Closing yesterday’s trading session at $40.60, the consensus price target of $67.44 represents a potential upside of 66.1%.

Cresco Labs Inc. (CRLBF)

Headquartered in Chicago, Ill., CRLBF is a manufacturer and cultivator of medical cannabis products in the United States. The company sells vape pens, live resins, disposable pens, cannabis in flowers and extracts under the Cresco brand. It also produces cannabis infused edibles, such as gummies, mints, and tarts.

This month, the company launched Wonder Wellness Gummies to expand its branded edibles portfolio. These innovative low-dose gummies are expected to address the consumer needs and allow CRLBF to capitalize on the white space for its edibles’ portfolio.

Last month, CRLBF agreed to acquire Cultivate Licensing LLC and BL Real Estate LLC, a Massachusetts-based vertically integrated operator. The strategic acquisition should allow the company to break into the top three market share positions in Massachusetts. Also, it will mark the fourth state in which CRLBF operates the maximum number of retail stores.

In the fourth quarter, ended December 31, 2020, CRLBF’s revenue has increased 292.2% year-over-year to $162.32 million. Its  gross profit increased 13.1% sequentially to $95.70 million, while its gross margin was 59% compared to 55.2% in the third quarter. CRLBF’s income from operations was $21.98 million, compared to a loss from operations of $25.88 million in the prior-year quarter.

Analysts expect CRLBF’s revenue for the quarter ending June 30, 2021 to be $187.66 million, representing 99.1% year-over-year growth. The company’s EPS is likely to increase 146.2% for its fiscal year 2021. Over the past year, the stock has gained 299.4%.

Wall Street analysts are very  bullish on CRLBF. Of eight analysts that rated the stock , seven have rated it a Strong Buy. The consensus price target of $20.13 represents a 63.9% increase from its  last closing price of $12.29.

KushCo Holdings, Inc. (KSHB)

Founded in 2010, KSHB manufacturers and sells packaging products, solvents, accessories, vaporizers and branding solutions to customers operating in the medical and recreational cannabis and hemp-derived cannabidiol industries in the United States, Canada, and internationally. The Cypress, Calif.-based company offers its products to the business-to-business market, which includes farmers, growers, processors, and licensed retailers.

Last month, KSHB agreed to merge with Greenlane Holdings, Inc. Under the agreement, KSHB will become a wholly owned subsidiary of Greenlane. This transaction is expected to strengthen KSHB’s brand and allow it to achieve robust organic growth in the long run.

During the fiscal second quarter, ended February 28, 2020, KSHB’s revenue increased 23% sequentially to $32.9 million,  attributable primarily to an increase in sales to the company’s MSO and LP customers. Its gross profit was $6.44 million compared to a gross loss of $8.91 million. Furthermore, KSHB generated cash of approximately $35.0 million as of February 28, compared to approximately $10.5 million as of August 31, 2020. 

KSHB is expected to generate revenue growth of 48.9% for fiscal 2022. Its EPS is estimated to increase 83.3% in the next quarter and 118.2% in 2022. The stock has gained 64.7% over the past year.

Closing yesterday’s trading session at $1.19, the consensus price target of $1.50 represents a potential upside of 26.1%.


TCNNF shares were trading at $41.17 per share on Wednesday morning, up $0.57 (+1.40%). Year-to-date, TCNNF has gained 30.20%, versus a 10.92% rise in the benchmark S&P 500 index during the same period.


About the Author: Imon Ghosh


Imon is an investment analyst and journalist with an enthusiasm for financial research and writing. She began her career at Kantar IMRB, a leading market research and consumer consulting organization. More...


More Resources for the Stocks in this Article

TickerPOWR RatingIndustry RankRank in Industry
TCNNFGet RatingGet RatingGet Rating
CRLBFGet RatingGet RatingGet Rating
KSHBGet RatingGet RatingGet Rating

Most Popular Stories on StockNews.com


:  |  News, Ratings, and Charts

Bulls in Charge…for Now at Least

Every since the S&P 500 (SPY) made new lows in mid June the bulls have been back in charge. At first it looked like your typical bear market rally. However, there are more and more signals going off that this may be the real deal. As in the new bull market may have arrived. That topic is a big deal as one's outlook, bullish or bearish, weighs heavily on how they construct their portfolio for the days and weeks ahead. That is why we will focus on that topic in today's commentary. Read on below for more…

:  |  News, Ratings, and Charts

The 3 Best Nasdaq 100 Stocks to Buy Now

The significant improvement in the inflation story has boosted investors’ confidence. However, market volatility is rife, and despite the uncertainties, the Nasdaq 100 has witnessed significant gains. Therefore, quality Nasdaq 100 stocks Johnson & Johnson (JNJ), Procter & Gamble (PG), and Novo Nordisk (NVO) could be ideal additions to your portfolio now. Let’s discuss the stocks in detail…

:  |  News, Ratings, and Charts

How to RIDE the Next Bull Market?

Growth stocks are back! And, they are leading the S&P 500 (SPY) higher after the brutal bear market investors experienced this year. Read on to find out the best strategy to profit from the next big bull market in growth stocks...

:  |  News, Ratings, and Charts

2 REITs to Buy and Hold for Decades

Despite the macroeconomic headwinds, real estate investment trusts (REITs) are expected to remain resilient due to rising demand, appreciation of property prices amid the high inflation, and increasing rental income. Moreover, REITs are considered ideal investments in uncertain market conditions since they pay out at least 90% of their income as dividends. So, quality REITs LTC Properties (LTC) and Getty Realty (GTY) could be ideal investments to survive the short-term market fluctuations and create solid long-term returns. Continue reading…

:  |  News, Ratings, and Charts

How to RIDE the Next Bull Market?

Growth stocks are back! And, they are leading the S&P 500 (SPY) higher after the brutal bear market investors experienced this year. Read on to find out the best strategy to profit from the next big bull market in growth stocks...

Read More Stories

More Trulieve Cannabis Corp. (TCNNF) News View All

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