Five Stocks That Are Attractively Priced, Solid Credits, With Room To Run
Portfolio Pulse from Viridian Capital Advisors
Viridian Capital Advisors highlighted five attractively priced cannabis stocks with solid credit rankings and potential for growth. The MSOS ETF saw a significant rise, attributed to DEA's consideration of rescheduling cannabis. Viridian is cautious about the timing of regulatory changes before the election. The selected stocks are Marimed (MRMD), Trulieve (TCNNF), Cresco (CRLBF), Verano (VRNOF), and Planet 13 (PLNH), chosen for their low EV/EBITDA multiples and resilience. Grown Rogue (GRIN), Glass House Brands (GLASF), and Curaleaf (CURLF) were considered overvalued, while Green Thumb (GTBIF) and TerrAscend (TSNDF) were excluded from the top picks.
January 08, 2024 | 4:57 pm
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POSITIVE IMPACT
Cresco is considered the riskiest credit but is trading at 1.8x its 52-week low and 6.06x 2024 EBITDA, indicating potential outperformance.
Despite being the riskiest credit, Cresco's low valuation multiples could lead to a positive short-term impact if market conditions favor growth.
CONFIDENCE 65
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Marimed is seen as undervalued, trading at 1.1x its 52-week lows and 4.3x consensus 2024 EBITDA, despite missing Q3 estimates.
Marimed's low trading multiples and potential for improvement in 2024 suggest a positive short-term impact on its stock price.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Planet 13 faced challenges in 2023 but is expected to improve in 2024, supported by a low-leverage balance sheet.
Analysts' positive projections for 2024 and a strong balance sheet could positively influence Planet 13's stock in the short term.
CONFIDENCE 65
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Trulieve appreciated by 14.4% but remains attractively priced at 1.7x its 52-week low and 4.8x its 2024 consensus EBITDA.
Trulieve's recent stock price appreciation and solid financials indicate a continued positive short-term outlook.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Verano, with strong credit rankings and trading at 6.4x 2024 EBITDA, has significant upside potential and lower pullback risk.
Verano's strong credit ranking and attractive valuation suggest a favorable short-term impact on its stock price.
CONFIDENCE 70
IMPORTANCE 75
RELEVANCE 85