Florida’s Amendment 3 is likely to win enough votes to legalize cannabis in the state, according to recent polls. One poll obtained by Florida Politics found that an overwhelming number of people support the Amendment. If that’s the case on the day of voting, Florida-related cannabis stocks could easily be sent to higher highs.
“At more than 64% support, the poll predicts the amendment could easily reach the 60% +1 threshold for passage,” they added. Another poll from Fox News showed that 66% of states support legalization.
We also have to consider that when and if cannabis is legalized, Florida, which already sees about $2 billion from medical cannabis sales, could see another $4.9 billion to $6.1 billion in sales during the first year of legalization, as noted by U.S. News.
There’s also speculation the U.S. could hear more about potential legalization at the federal level as we near the November election. After all, with 88% of Americans supporting it, the candidates may be able to pick up more votes just on positive mention.
That being said, investors may want to jump into cannabis stocks such as:
Planet 13 Holdings (PLNH)
At 50 cents, Planet 13 Holdings (OTCMKTS:PLNH) is a steal. It could benefit from potential legalization in Florida, especially after its latest $49 million acquisition of VidaCann.
That deal now gives PLNH another 26 stores in Florida. In addition, according to the press release, “Planet 13 intends to further elevate VidaCann’s success in Florida by introducing indoor cultivation to diversify product offerings at VidaCann stores. The company expects to bring its Nevada brands to Florida with the goal of improving per-store economics.”
Two analysts at Canaccord recently upgraded Planet 13 to a buy rating. According to the firm, while its home market of Nevada is seeing pricing pressures, which limits Planet 13’s ability to produce organic growth, its Super Store is one of the highest-grossing locations in the country.
Last trading at 50 cents, PLNH is a buy. With potential legalization in Florida, I’d like to see the stock double or even triple in the near term.
Trulieve Cannabis (TCNNF)
On July 8, I highlighted an opportunity in Trulieve Cannabis (OTCMKTS:TCNNF), which traded at around $9.30. It’s up to $10 and could race even higher on potential Florida legalization.
As I said last week, “Alliance Global Partners noted that TCNNF is best positioned for potential legalization in Florida. In addition, analysts at Needham also raised their price target on TCNNF to $14.50 with a buy rating. Analysts at Canaccord also raised their price target to $38.”
The company also expanded its footprint in Ohio, acquiring two medical dispensaries in Beavercreek and Columbus as part of a legal settlement.
Plus, earnings haven’t been too shabby. Its first-quarter EPS loss of 5 cents beat by 6 cents. Revenue of $298 million — up 4.6% year over year — beat by $12.27 million. It generated a free cash flow from operations of $139 million and a free cash flow of $124 million.
Curaleaf Holdings (CURLF)
Another one of the hottest cannabis stocks that could race to higher highs is Curaleaf Holdings (OTCMKTS:CURLF), which I also mentioned on July 8.
At the time, CURLF traded at $3.80. Today, it’s up to $4.21 and is still a buy.
Even better, as I also noted on July 8, according to CEO Matt Darin, “Our unique exposure to the most significant catalysts on the horizon – continued expansion of the NY market, expansion of Pillar 1 in Germany, and adult use in Ohio, Florida and Pennsylvania sets us up for robust growth in 2025 and beyond.”
And while earnings haven’t been great, I expect that to change once we see legalization and sales growth in Florida. In its last report, the company saw an earnings per share loss of seven cents, which missed by two cents. Revenue of $339 million (up 0.7% year over year) missed by $560,000. Again, these numbers should improve moving forward.
On the date of publication, Ian Cooper did not hold (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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
