U.S. cannabis stocks often get overlooked in favor of popular Canadian players like Aurora Cannabis and Canopy Growth. But if you look at their revenue growth even in a limited legal market, you will understand why U.S. stocks are actually the better options. While marijuana is still illegal at a federal level in the U.S., more states made cannabis legal in the November 2020 elections, presenting more opportunities for expansion. Currently, 35 states and the District of Colombia allow the medical use of cannabis, while 15 states and D.C. allow recreational use of marijuana.
Massachusetts-based Curaleaf Holdings (OTC: CURLF) had a marvelous 2020. It reported consistent revenue growth and positive EBITDA (which stands for earnings before income, tax, depreciation, and amortization). Its outstanding performance continued into the third quarter of fiscal 2020, which was reported on Nov. 17. Its stock has gained 97% so far this year, while the industry benchmark, the Horizons Marijuana Life Sciences ETF, is down 4% over the same period. Here are three reasons why this pot stock is an excellent buy after its Q3 results.