Why It’s Still Not Too Late to Invest in Cresco Labs
Cresco Labs (CSE:CL) (OTC:CRLBF) reported its fourth-quarter and year-end earnings last week. The cannabis operator posted sales of $476.3 million which grew 271% from the previous year. And not only did the company generate tremendous sales growth but it also posted an adjusted EBITDA profit of $116 million. Many companies in the industry struggle to get anywhere near breakeven.
Overall, it was an incredible year for Cresco Labs and their stock has risen more than 300% over the past 12 months.
But there is no reason investors should expect the company’s impressive growth to slow down just yet. CEO Charles Bachtell stated that “in 2021, cultivation expansions are underway and we are executing accretive M&A as we repeat our playbook in more states.”
New Jersey recently legalized marijuana and New York looks to be on the cusp of doing so as well. Those are two tremendous markets that could soon open up for the industry. Most recently, Cresco Labs announced the acquisition of a Massachusetts-based vertically integrated cannabis company, Cultivate Licensing.
Cresco is still a relatively underrated buy in the industry. With a market cap of $2.7 billion, it is trading at just 5.7 times its sales. Rivals Curaleaf Holdings (OTC:CURLF) (CSE:CURA) and Trulieve Cannabis (OTC:TCNNF) (CSE:TRUL) trade at multiples of more than 10.
This pot stock is one of the safer buys in the industry with its relatively conservative growth strategy, strong bottom line, and its very reasonable valuation. For investors looking to take invest in the cannabis industry, Cresco is a great option, especially for risk-averse investors.