Happily, with many marijuana stocks on the market, investors are spoiled for choice if they want to buy in on the sector. Two companies are particular standouts at the moment.
In this segment from Motley Fool Live recorded on Feb. 5, 2021, longtime Motley Fool contributor Eric Volkman and healthcare and cannabis bureau chief Corinne Cardina zero in on that high-potential pair.
Corinne Cardina: Pure plays, these are companies that their whole business model is cannabis, they depend on cannabis, they don’t have any backup plans, if you will. What’s the first one we’re going to talk about?
Eric Volkman: What do we have on our sheet here? Let me look at the cheat sheet. Where are we going? The first one we’re looking at is Cresco Labs (OTC:CRLBF).
Cresco Labs is based in Illinois, which we talked about just a second ago, which is now a wide-open marijuana market, relatively speaking. The stock has been up, it’s not an undiscovered stock. Over the past year, it’s up 152%, which is a lot.
But there is momentum behind them. Sales growth almost 330% this last quarter, which tells you something, which a lot of that is organic. They’re not profitable. What a surprise, right? That never happens with marijuana stocks. But they’re beautifully positioned.
They have a nice grip on the Illinois market, more dispensaries are coming, they’re active outside of their market too. Their dispensaries are popular, they’re clean, they’re nice places to buy marijuana. I see more growth in their future. I like that company a lot. I think for me, it’s probably my favorite of the retail stocks, Cresco.
They don’t have a huge footprint nationally, but they are getting there, and they are positioned in certain places that, I would put money