This U.S. Pot Stock Is Poised to Be the Next Industry King

This U.S. Marijuana Stock Is Poised to Be the Next Industry King
iStock.com/Светлана Зайцева

CURLF Stock Continues to Impress

The hierarchy of marijuana stocks is mutable. In fact, it’s prone to many changes. With Canopy Growth Corp (NYSE:CGC) having recently made several big moves, none of which I was particularly on board with, there’s a decent chance that another marijuana company will emerge as the industry king.

Considering the growing momentum behind the progress toward federal U.S. marijuana legalization, it only makes sense that said “king” would come from the U.S. instead of Canada this time.

Enter Curaleaf Holdings Inc (OTCMKTS:CURLF, CNSX:CURA). CURLF stock is quickly becoming my top pot stock and should definitely be on your radar.

First there’s the obvious good news: Curaleaf operates in the United States. Sure, Canada was the first major economy to legalize pot, but it is a very tiny sliver of the overall market available to pot companies if the U.S. also enters the game. Or rather, if the the U.S. fully enters the game; America already has legal marijuana in 11 states and D.C., not to mention that cannabidiol (CBD) is now legally available across the country.

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Curaleaf Holdings has operations in 12 states and the company just launched another cannabis dispensary, this time in Port Charlotte, Florida. (Source: “Curaleaf Opens Port Charlotte’s Largest Medical Cannabis Center,” Curaleaf Holdings Inc, September 3, 2019.)

This location is the 49th dispensary that Curaleaf has opened in the U.S., and the 26th that the company has opened in Florida alone.

So what we have here is a fast-growing marijuana company that is looking to make a claim to the U.S. market. Considering there are very few options for investing in the broader marijuana sector while it remains federally prohibited, CURLF stock offers a fantastic avenue to gain exposure to the U.S. market at the ground level and be ready for when marijuana legalization eventually lands.

Speaking of the U.S. marijuana market, we are already seeing just how powerful that beast will be once fully unfettered. Curaleaf Holdings is already projecting $1.0 billion in sales during the next fiscal year. (Source: “Cannabis Canada: Will Curaleaf be the first pot company to report US$1B in sales?,” BNN Bloomberg, August 28, 2019.)

If it follows through, Curaleaf will be the first company to post over $1.0 billion in sales in the U.S. legal marijuana industry.

So you have a fast-growing pot stock operating in the highest-potential market for pot in the world; that’s a very potent combination.

A final benefit for Curaleaf stock is that investors are confident about the company. After all, despite the current downturn wreaking havoc on many pot stocks in the short term, CURLF stock has proven to be exceptionally resilient.

Chart courtesy of StockCharts.com

Which is to say that, while other stocks have struggled mightily in the current economic climate, CURLF stock has been one of the stronger stocks to come through the current downturn.

And, of course, we can’t talk about all the potential within Curaleaf Holdings stock without addressing the best part: it’s a U.S. pot stock.

What I mean by that is we are nearing the horizon of marijuana legalization in America, when overwhelming support of both citizens, business, and politicians coalesce to bring about long-overdue marijuana reform. When that time comes, we’re going to see all pot stocks benefit, but especially U.S. marijuana stocks.

U.S. Marijuana Legalization

I know I write a lot about this topic, but it’s likely to be the most pivotal event in marijuana stock history.

It’s especially worth noting that so many pot stocks have fallen and are currently at bargain prices. When marijuana legalization hits, expect to see the entire industry head into a massive bull run. As it does, the swelling tide will raise all shares, but marijuana stocks with a footprint in the U.S. will especially benefit.

Curaleaf stock, of course, is set to be a big beneficiary, being one of the top U.S. pot stocks. But many other marijuana stocks, if purchased now during the market correction, will likely see exponential growth by the time legalization comes around in the next few years.

And we are now on a timeline in which U.S. marijuana legalization in the next three to five years not only seems likely but inevitable.

The Democratic Party has taken a hard line on supporting pot reform pretty much up and down the party leadership. Almost every single major Democrat candidate for president has some form of marijuana reform in their platform.

While I won’t get into the game of predicting who will sit in the White House in 2021, there’s a very good chance that it will be a pot-friendly politician.

Analyst Take

When it comes to the pot sector, the U.S. marijuana stocks currently available on the open market are easily some of the stocks with the highest potential to see big gains.

After all, once the entire country opens up for legalization, we’re going to see an onrush of interest in pot stocks as the worldwide market grows by leaps and bounds in the span of a single pen flourish.

Whether it’s this president or the next who signs off on U.S. marijuana legalization, one thing is certain: the time is quickly approaching for pot stocks to see huge growth, so investing now at a down point could end up being a portfolio-boosting move.