The ‘pink wave’ didn’t occur on Tuesday — however a inexperienced one is showing. These two states simply voted to legalize smoking weed, becoming a member of 19 different states and DC. Ought to traders pounce?

With midterm election outcomes persevering with to trickle out, each headline appears to be about how the “pink wave” didn’t occur. Right here’s one thing that did materialize and may very well be a chance for traders — extra hashish legalization.

On this election, legalizing marijuana was on the poll in 5 states. Voters in Maryland and Missouri voted to approve the legalization of leisure hashish, whereas the proposal didn’t cross in North Dakota, South Dakota and Arkansas.

Meaning Maryland and Missouri will probably be becoming a member of 19 different states and the District of Columbia that supply authorized leisure hashish to their residents.

Because the U.S. continues to maneuver in the direction of legalization, hashish corporations stand to learn.

Let’s check out three marijuana shares able to capitalize on this development. They’re listed on inventory exchanges in Canada however commerce over-the-counter within the U.S. — analysts additionally see main upside on this trio.

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Trulieve Hashish Corp (TCNNF)

Trulieve Hashish entered the hashish {industry} by successful the primary medical marijuana utility in Florida in 2015. Immediately, it has 100 shops within the Sunshine State, and round 150 operated and affiliated dispensaries nationwide.

The corporate claims that it has main market positions not simply in Florida, but additionally in Arizona and Pennsylvania.

Trulieve’s financials have grown tremendously, and even the COVID-19 pandemic couldn’t cease the momentum. In 2020, income rose 106% from the 2019 degree to $521.5 million.

In 2021, income surged one other 80% to $938.4 million.

In accordance with the newest earnings report, Trulieve earned $320.3 million of income in Q2 of 2022, up 49% yr over yr.

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The inventory, nevertheless, has plunged over 52% yr thus far.

Canaccord analyst Derek Dley sees a rebound on the horizon. The analyst has a ‘purchase’ ranking on Trulieve and a value goal of C$57 on its Canada-listed shares — implying a possible upside of 273%.

Inexperienced Thumb Industries (GTBIF)

Inexperienced Thumb is a vertically built-in hashish firm headquartered in Chicago. It has 17 cultivation and manufacturing amenities, six client product manufacturers, 77 open retail places, and operations in 15 U.S. markets.

Similar to Trulieve, Inexperienced Thumb inventory hasn’t been a scorching commodity: shares are down greater than 30% in 2022.

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Enterprise, nevertheless, continues to be on the rise.

Income totaled $261 million for the quarter that resulted in September, up 12% yr over yr and three% sequentially.

However the most effective half has been the underside line. Inexperienced Thumb earned a revenue of $10 for the quarter, marking its ninth consecutive quarter of optimistic internet revenue.

Stifel analyst Andrew Partheniou has a ‘purchase’ ranking on Inexperienced Thumb and a value goal of C$31 on its Canada-listed shares. Since these shares commerce at C$17.25 proper now, the worth goal represents a possible upside of 80%.

Curaleaf Holdings (CURLF)

With a market cap of round $4.9 billion CAD, Curaleaf is a much bigger firm than each Trulieve and Inexperienced Thumb.

It has an enormous presence within the U.S. hashish {industry}, with 26 cultivation websites, roughly 4.4 million sq. toes of cultivation capability, 136 retail places and greater than 2,150 wholesale companion accounts.

Throughout the third quarter, income grew 7% yr over yr to $340 million.

Notably, Curaleaf has a powerful concentrate on analysis and improvement: the corporate is at present on tempo to extend new product income 75% yr over yr.

Nonetheless, this pot heavyweight will not be proof against the industry-wide sell-off as shares are down over 30% yr thus far.

Alliance World Companions analyst Aaron Gray has a ‘purchase’ ranking on Curaleaf and a value goal of C$12 on its Canada-listed shares — roughly 52% above the place they sit right this moment.

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This text offers info solely and shouldn’t be construed as recommendation. It’s supplied with out guarantee of any variety.