2 Cannabis Stocks Wall Street Thinks Will Gain More Than 80%

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The marijuana industry’s prospects in the United States have never been better and stocks in the space are attracting the attention of analysts and investors.  According to a Grand View Research report, the global legal marijuana market is expected to expand at a CAGR of 14.3% between 2021 to 2028.

Due to the increasing legalization of cannabis for recreational purposes and the growing demand for medicinal marijuana for treating various ailments, cannabis sales are expected to increase this year and beyond. The cannabis market thus presents a huge opportunity for top cannabis players such as Harvest Health & Recreation Inc(HRVSF - Get Rating) and Akerna Corp. (KERN - Get Rating) because they are continuously increasing their capacity and dispensaries in key states and high-growth markets.

With Governors of many states pushing for federal decriminalization of marijuana, Wall Street analysts believe these two cannabis stocks will gain significantly in the near term.

Harvest Health & Recreation Inc. (HRVSF - Get Rating)

Based in Arizona, HRVSF is engaged in the cultivation, processing, and selling of cannabis in the United States. It offers cannabis oil, capsules, tinctures, and cannabis product edibles under the Roll One, Modern Flower, Alchemy, and CBX Sciences brands, among others. The company also operates retail dispensaries that sell cannabis products to patients and other customers.

This month, HRVSF opened a new medical dispensary in Whitehall, Pa., to serve patients with its quality products. It marks the company’s ninth location in Pennsylvania’s fast-growing medical marijuana market. In February, the company completed the divestiture of its two medical marijuana dispensaries in North Dakota as part of its strategic plan to allocate resources in core markets to enhance its growth opportunities.

HRVSF’s total revenue increased 84.9% year-over-year to $69.9 million in the fourth quarter, ended December 31 Its gross profit grew 88.6% from the year-ago value to $31.3 million, while its retail revenue rose 107.9% year-over-year to $52.4 million over this period. The company’s gross margin in the fourth quarter was 44.8%, compared to 43.8% in the fourth quarter of 2019.

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