Investors looking for growth may want to consider adding a cannabis stock or two to one’s portfolio. Sure, these companies are high-risk, high-reward bets. And the sector is in decline among investors from a sentiment standpoint. However, in hyper-bull markets, investors have seen what these stocks can do in terms of performance.
I think given the selloff we’ve seen among various cannabis stocks of late, there are a few examples of companies that are worth a hard look right now. One cannabis stock that has piqued my interest of late is Curaleaf (TSXV:CURA).
Let’s dive into why this could be the best cannabis stock investors should consider right now.
Curaleaf: A U.S. cannabis stock with excellent potential
One of the issues I have with many Canadian-listed cannabis stocks right now is that these companies are generally confined within Canada. Sure, Canada is a relatively large market from a legalization standpoint. However, the entire state of California is larger in both population and cannabis consumption than the entire nation of Canada. Those looking for real growth in this sector are going to have to look to the U.S.
In the U.S., the biggest player right now is Curaleaf. As it happens, Curaleaf is listed on the TSX Venture Exchange. Accordingly, Canadian investors can get Canadian dollar denominated access to a U.S.-listed company in a hyper-growth market. Sounds good to me.
Given the varying impacts the upcoming potential U.S. legalization bills will have on stocks, I think Canadian investors need to differentiate between which stocks will be the winners and losers in this respect. Accordingly, I view Curaleaf as one of the best bets in the cannabis sector right now.
With a presence in more than 20 states and five countries in Western Europe, Curaleaf is a massive company. Besides having over 100 dispensaries, this company has more than 20 cultivation sites and over 30 processing facilities.
This is a vertically integrated machine, producing, distributing, and retailing the end product. Investors in Curaleaf are essentially making a bet on the entire cannabis supply chain. I like that.
Bottom line
Indeed, I think the issue with the cannabis sector continues to be a lack of investor focus on which stocks will truly be able to lead the pack. In this regard, I view Curaleaf as a top pick.
Accordingly, those with a truly long-term view seeking a top cannabis stock to buy right now may want to take a hard look at this company. I think it’s cheap relative to its growth potential and peers. And who knows? Maybe another run is just around the corner.
