In the constantly evolving world of investment, smart individuals are always searching for the next exciting opportunity. This leads us to the thriving cannabis industry, which has become increasingly accepted and legalized in various states and countries. In turn, this has led to the rise of top cannabis stocks to buy in August.
Consequently, this sector brims with an immense potential that we will explore through extensive analysis of three promising companies. Navigating the market can be a daunting task and is subject to constant change. We’ve gone and done the hard work for you.
Thus, let us delve into the potential of these top cannabis stocks to buy.
Sundial Growers (SNDL)
Sundial Growers (NASDAQ:SNDL) cultivates, processes and sells cannabis & alcoholic beverages through its own outlets. Its brands include Sundial, Top Leaf, Palmetto and Grasslands.
First, analysts suggest a potential 114% increase in its shares within a year, driven by acquisitions like Valens and its low price-to-book ratio. It has also navigated market challenges by diversifying into the retail liquor business and considering investments in multi-state operators (MSOs) in the U.S.
On a technical level, things look strong for the company. Namely, it has a $4.62 price target, and its stock price hovers around its 52-week low. In the immediate time frame on the 4-hourly charts, momentum is also returning to the upside, so we could expect a higher stock price in the coming days and weeks ahead. All told, it is one of the top cannabis stocks to buy.
Curaleaf Holdings (CURLF)
Curaleaf (OTCMKTS:CURLF) produces cannabis products for retail and wholesale distribution and provides similar professional services. Curaleaf’s strong revenue growth and aggressive expansion strategy could make it a promising investment. The company’s focus on both retail and wholesale distribution could also provide multiple avenues for growth.
Specifically, Curaleaf’s acquisition of EMMAC Life Sciences offers European growth potential. The company’s US focus and broad presence are also its strengths. For U.S. investors, having exposure to CURA may also help diversify them from being totally invested in stocks in their home soil. This is yet another reason why I think it ticks two important boxes for investors.
Finally, the company’s share may trade at undervalued levels compared with its peer companies. There’s also good reason to suspect that it can rise in further value as the cannabis market continues to thrive and adapt.
Green Thumb Industries (GTII)
Green Thumb Industries (OTCMKTS:GTBIF) manufactures, processes and distributes cannabis products such as concentrates, vapes, pre-rolls, edibles and topicals. The company also owns retail locations throughout the U.S. Its retail segment and adult-use legalization in added markets helped to drive slight revenue growth in the first three months of 2023.
While revenue growth was driven by factors like adult-use legalization in New Jersey, it’s notable that units sold increased by 28% year-over-year, indicating strong consumer demand despite the market’s challenges. However, despite a 14% year-over-year increase in full-year revenue, the company faced challenges like price compression and regulatory hurdles.
These problems, however, could be a blessing in disguise. The company trades at undervalued levels, and the market could be mispricing this one relative to its future potential. For this reason, it is one of my top picks for budding cannabis investors.
On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.