Just as investors who follow the stock market have heard of Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), and Microsoft (NASDAQ:MSFT), investors who follow the cannabis industry have heard of that industry’s giants of marijuana stocks, like Canopy Growth (NYSE:CGC), Aurora Cannabis (NYSE:ACB), and Tilray (NASDAQ:TLRY).
And just like there are strong opportunities aside from the largest tech names, there are also a handful of cannabis stocks that trade at much better valuations than the names saturating the media.
My goal is to find those stocks before they are household names — the ones still flying under the radar that have huge upside potential.
This type of stock is not widely following on Wall Street. It’s not the topic of conversation at the water cooler. But that’s actually a good thing …
It is precisely these unknown stocks that have upside potential that often far outweighs any increased risk. It’s that combination that makes these stocks great buys.
Today, I am watching three under-the-radar cannabis stocks as potential investments. They aren’t widely known, but I am confident that you will hear about them just as much as — if not more than — the likes of Canopy Growth and Tilray in the years ahead.
Curaleaf (CURLF)
Curaleaf (OTCMKTS:CURLF) is a leading U.S. cannabis company that most investors have overlooked. It operates 39 dispensaries, 12 cultivation facilities, and 10 processing sites throughout 12 states.
This $3.4 billion company is a true growth story. Revenue in 2017 totaled $19.3 million, and management estimates that sales should reach $400 million this year. That’s a 20X increase in just two years.
Curaleaf is starting to gain attention on the Street after hitting a three-month high this week. But even at these levels, the stock is a steal based on its long-term outlook.
Charlotte’s Web (CWBHF)
Charlotte’s Web (OTCMKTS:CWBHF) is a $1.4 billion company and is already a leader in its industry, yet it remains unknown by most of Wall Street. But not if you’ve been reading my articles. Charlotte’s Web is my pick in InvestorPlace’s Best Stocks for 2019 contest, and it’s already up nearly 30% this year.
Charlotte’s Web started garnering more attention after the Farm Bill was passed in late December. The legislation legalized hemp in the United States for the first time in more than 80 years. As the leader in market share for hemp-cannabidiol (CBD) products, this company is a surefire way to play the soon-to-be-booming hemp industry.
There is huge growth potential here. One prediction has the U.S. hemp market growing from $800 million last year to $22 billion by 202. That’s more than 20X growth in two years.
Do you see a trend emerging with these first two under-the-radar stocks?
The Supreme Cannabis Company (SPRWF)
Supreme Cannabis (OTCMKTS:SPRWF) is the smallest of the three, with a market cap of just $395 million. But that doesn’t mean its potential is any less.
This Canadian company produces medical marijuana, and it recently uplisted from the Toronto Venture Exchange to the Toronto Stock Exchange (TSX). The move is equivalent to uplisting from the OTC markets in the U.S. to the New York Stock Exchange.
Companies on the TSX must meet more stringent requirements, but they also have a lot more visibility. It’s a big deal that opens the door to more money flowing in.
Earlier this week, SPRW reported quarterly earnings of $7.72 million, up from $1.8 million in the same quarter last year… nearly 330% year-over-year growth.
That impressive figure combined with the move to the TSX should start to get this stock noticed. From there, the sky is the limit.
Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you’re interested in making triple-digit gains from the world’s biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today.
