3 Cannabis Stocks You’ll Regret Not Buying Soon: November 2023


  • Here are three top ways to trade the coming cannabis boom.
  • Innovative Industrial Properties (IIPR): This strong REIT is yielding about 9% at the moment.
  • Tilray (TRLY): Although oversold, it’s starting to come back strong thanks to diversification.
  • Green Thumb Industries (GTBIF): Company was recently upgraded to a buy rating.
cannabis stocks - 3 Cannabis Stocks You’ll Regret Not Buying Soon: November 2023

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Cannabis stocks could see higher highs in 2024. For one, according to a recent Gallup survey, 70% of Americans back legalization.

“Support for marijuana legalization has reached a new record high nationally, with seven in 10 Americans—including a sizable majority of Republicans, Democrats and independents—now backing an end to prohibition,” according to an article by Kyle Jaeger in Marijuana Moment.

And with the upcoming presidential election, President Biden and other candidates may want to latch on to what those 70% of Americans want to see. Additionally, the U.S. Drug Enforcement Administration is expected to reschedule cannabis. Once that happens, it could attract new investors, researchers, and business to the sector.

Let’s explore the three cannabis stocks that investors are considering buying this month.

Innovative Industrial Properties (IIPR)

A close-up shot of a marijuana growhouse. cannabis trends
Source: Shutterstock

Every time I write about cannabis stocks, real estate investment trust (REIT), Innovative Industrial Properties (NYSE:IIPR) is a top pick.

Thanks to its 9% yield, which could push even higher, it’s cheap at $80 a share. Further, earnings are coming back strong. Q3 funds from operations (FFO) jumped to $2.09, which beat expectations for $2.05. That was also up from the $1.97 posted a year earlier. Revenue of $77.8 million beat expectations for $76.6 million. Even better, the company which owns 108 properties across 19 states just said rent collection came in at 97%.

With more U.S. states legalizing the use of cannabis, coupled with federal action, it could send IIPR to higher highs moving forward.

Tilray Inc. (TLRY)

Mobile phone with webpage of Canadian cannabis company Tilray (TLRY) Inc. on screen in front of business logo. Focus on top-left of phone display. Unmodified photo.
Source: T. Schneider / Shutterstock.com

Even oversold shares of Tilray (NASDAQ:TLRY) could push aggressively higher. In fact, after slipping from $3.25 to $1.73, TLRY caught strong support and is starting to perk back up. While the cannabis side of the business hasn’t been too hot, the company is still doing well thanks to diversification into the beer and beverage side of things.

In early October, TLRY posted better than expected revenue. It was boosted by its acquisition of Truss Beverage Co. and several beer and beverage brands from Anheuser-Busch (NYSE:BUD). Both helped TLRY become the fifth “largest craft beer brewer in the U.S., up from the 9th position,” said CEO Irwin Simon, as quoted by Seeking Alpha.

Moving forward, I expect the beer and beverage business to get stronger, fueling further upside in TLRY’s bottom line. Eventually, the same can be said for the cannabis side of the business when and if we finally see federal action on the issue.

Green Thumb Industries (GTBIF)

Young green medicinal marijuana plant in a pot after a rain fall shallow depth of field with focus on leaf; cannabis stocks
Source: gvictoria / Shutterstock.com

Or, take a look at Green Thumb Industries (OTCMKTS:GTBIF), which I also mentioned on Oct. 12, as it traded at $9.40. Now up to $10.22, GTBIF could also see higher highs. Recently, it announced a $50 million share buyback. Also, it’s one of the only cannabis companies that’s generating cash flow and solid earnings.

In its most recent quarter, GTBIF posted Q3 EPS of five cents, which beat expectations by a penny. Revenue of $275.4 million, up 5.4% year over year (YOY), beat by $18.1 million. Adjusted EBITDA was $83 million or 30% of revenue. Cash flow from operations was $154 million. 

Furthermore, analysts at Alliance Global Partners placed a buy rating on the GTBIF stock.

“The company benefited from adult-use sales beginning in Maryland and company continues to demonstrate itself as a ‘best-in-class’ operator in the space, the analyst tells investors in a research note,” as mentioned by TheFly.com.

On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.

Article printed from InvestorPlace Media, https://investorplace.com/2023/11/3-cannabis-stocks-youll-regret-not-buying-soon-november-2023/.

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