What Does the Future Hold for Trulieve Stock?
Trulieve Cannabis Corp (CNSX:TRUL, OTCMKTS:TCNNF) is a marijuana stock that wasn’t really on my radar prior to 2021. But this year, TCNNF stock has really turned me into a believer, due to the company’s business growth and soaring revenue.
But the ultimate question is, as always: Is Trulieve stock a good long-term buy-and-hold pot stock? And moreover, does it have the chops to compete with some of the other heavy hitters?
In my mind, the answer is: absolutely.
TCNNF stock has flown under quite a few radars, which is where you want a stock to be when you invest.
In its most recent quarterly report, Trulieve announced revenue of $215.1 million, up by 11% from the previous quarter. (Source: “Trulieve Reports Record Second Quarter 2021 Earnings and Expansion into New Markets,” Trulieve Cannabis Corp, August 12, 2021.)
The company also recently announced plans to acquire Harvest Health & Recreation Inc (CNSX: HARV, OTCMKTS:HRVSF). This is one of the biggest acquisitions ever announced in the U.S. marijuana market.
The acquisition will also no doubt boost Trulieve Cannabis Corp’s revenue and help generate more cash, which can, in turn, be leveraged to help the company continue its countrywide expansion.
This follows Trulieve’s recent acquisition of a recreational pot dispensary from Nature’s Remedy of Massachusetts, Inc. in Worcester, MA. (Source: “Trulieve Completes Acquisition of Marijuana Retail License for Dispensary Location in Worcester, Massachusetts,” Cannabis Investing News, June 30, 2021.)
Trulieve has also expanded its presence in Central Florida. (Source: “Trulieve Expands Access to Medical Cannabis in Central Florida With New Winter Park Location,” Trulieve Cannabis Corp, June 23, 2021.)
In late August, the company announced the opening of its 99th and 100th dispensaries in the U.S.—both in Florida. (Source: “Trulieve Announces Opening of 100th Dispensary in United States,” Trulieve Cannabis Corp, August 25, 2021.)
Trulieve’s focus on expanding its U.S. and global footprint is exactly what I look for in a top pot stock.
One winner I’ve praised for a long while, Curaleaf Holdings Inc (CNSX:CURA, OTCMKTS:CURLF), has a similar approach, which has paid off with huge gains from CURLF stock.
Another thing Curaleaf Holdings Inc and Trulieve Cannabis Corp have in common is that both companies are on par to break $1.0 billion in revenue in 2021.
That’s an impressive feat even without COVID-19 wreaking havoc on supply chains. Doing all that during a global pandemic is impressive indeed.
Chart courtesy of StockCharts.com
All this good news comes at a great time for investors: Trulieve Cannabis Corp is in the midst of an upward swing.
Whereas before, Trulieve stock had seen nothing but gains, a few months of downward motion (see chart above) shows that there was a period of unmitigated hype, something that has taken place time and time again in the marijuana industry.
But, as has been the case in the past, these kinds of downward motions usually precede even stronger rises when investors begin to regain confidence in the stock or—better yet—view the new lower price as a steal.
Dear reader, I believe that’s what’s happening right now with Trulieve Cannabis Corp.
TCNNF stock is in a very attractive price range right now after having given back some of its gains after reaching almost 200% growth in March. As it stands, Trulieve stock is still up by about 50% and it recently climbed back by about 20% in September.
In other words, momentum is once more beginning to build behind TCNNF stock. And I have every reason to believe that Trulieve stock will regain its all-time highs sooner rather than later.
That’s because the market is hungry for pot stocks of companies that demonstrate ambitious acquisition strategies in the U.S., especially as we see state after state legalize marijuana.
If Trulieve Cannabis Corp continues on that path, I see no reason why it can’t someday challenge the other top U.S. marijuana stocks for dominance.
From what I’ve seen so far, the company has the ambition, sound fundamentals, cash, and savvy needed for TCNNF stock to become a winner in the U.S. marijuana market.
And the more that Trulieve Cannabis Corp grows, the more it stands to grow even larger should federal U.S. marijuana legalization come to pass.
I’ve written ad nauseam about the likelihood (or unlikelihood) of federal U.S. pot legalization occurring in the near future, but the fact remains that it will eventually happen; it’s simply a matter of time.
And a good thing about Trulieve stock is that, in the meantime, it could continue rising with each state that passes marijuana legalization.
What’s more, as consumers move away from the pot black market and adjust to the legal marijuana market, we’ll see growth spill over from markets across the U.S., which will benefit a company like Trulieve Cannabis Corp, with its strong presence in the U.S.
With the future of the U.S. marijuana market so bright, it only makes sense that the future of one of the top players in the U.S. pot sector would also be bright.
With Trulieve Cannabis Corp’s solid financials, ambitious acquisitions, and sound expansion strategy across the U.S., I see no reason why TCNNF stock shouldn’t be considered one of the top marijuana stocks.