Cannabis Stocks? Come On In, The Water's Warm: Sundial, TerrAscend & Curaleaf All Had Great Month

Though May isn’t over yet, let's look at three cannabis stocks that led the pack this month in revenue growth: Sundial SNDL, TerrAscend Corp. TRSSF and Curaleaf Holdings CURLF. 

Despite the crowded field, uncertainty regarding legalization and the illicit market yanking profits away from legal operators (just ask New York), there is still a modicum of optimism in the air. Why? The Senate finally heard testimony on the SAFE Banking Act, which seeks to normalize relations between state-licensed cannabis businesses and financial institutions. 

Sales Slowed But Not That Much

Though cannabis sales have slowed across the country, even in monster markets like Michigan and Illinois, most agree that the drop has to do with oversupply, which has forced retailers to slash prices and, again, they’re all facing competition from the unlicensed market.

But let’s be positive as we look at the top cannabis stocks in these three categories: best value, fastest growth and best stock performance.

Sundial cultivates, processes and sells through its own outlets and also happens to sell alcoholic beverages. Sundial's revenue jumped in the latest quarter because the company added liquor retail revenue with its March 2022 acquisition of Alcanna for a cool $255.55 million. As a result of that transaction, Sundial says it is now Canada’s biggest private sector liquor retailer. Sundial is expected to report earnings on Monday May 15 before market open, so stay tuned because the Canadian-based company has had a "high" Earnings Quality Ranking (EQR) for the 24th consecutive week.

TerrAscend, which is vertically integrated and operates in the U.S. and Canada with such brands as The Apothecarium, Ilera Healthcare and Kind Tree. The company just reported a record Q1 2023 net revenue of $69.4 million, an increase of 4.2% sequentially and 42.8% year-over-year as well as marking its 6th consecutive quarter of sequential revenue.

Curaleaf Holdings also had a decent Q4 2022 with net revenue of $1.336 billion, a 12% increase compared to $1.195 billion in FY 2021. In addition to operating in 19 states with 152 dispensaries, there’s also Curaleaf International which is the largest vertically integrated cannabis company in Europe with its own supply and distribution network in EU.

Cannabis Stocks: Don't Be Shy

Despite the, at times, disappointing performance of weed stocks over the past year, let's not forget what MJBizDaily and other analysts have been saying: U.S. cannabis sales are projected to surpass $33 billion in 2023 and up to $57 billion by the end of 2028.

So, yeah, not a bad place to invest some money.