Sunday, February 25, 2024
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The 3 Most Promising Cannabis Stocks According to Grok AI

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The growing use cases for cannabis and hemp for medical and other purposes and the release of X’s Grok AI have led to this list of Grok AI cannabis stock picks.

Grok AI is trained on tweet data and has real-time access to live data feeds such as stock prices and valuation ratios. These combined can help investors get a glimpse into some of the hottest stocks available on the market.

Now might be a good time for investors to start thinking about investing in cannabis stocks. This comes amid the Department of Health and Human Services (HHS) recommending that regulators loosen federal restrictions on marijuana, stating that it is less harmful than other drugs and has credible scientific support for medical use.

While the prospect of widespread decriminalization of cannabis remains remote in the U.S., there is a slowly building consensus toward availability for people with certain health conditions, making these Grok AI cannabis stock picks a timely addition to the conversation.

So here are the best Grok AI cannabis stock picks for investors to consider.

High Tide (HITI)

High Tide (NASDAQ:HITI) is a cannabis-focused company in various industry segments. The company’s key operating segments include retail, e-commerce and wholesale.

Here’s what Grok had to say about HITI stock:

High Tide is a large revenue cannabis company with 15 consecutive quarters of quarterly revenue growth, consistently AEBITDA+, and now FCF+. The company is undervalued at a price-to-sales ratio of 0.3. High Tide will benefit from US reforms through its e-commerce customer base of 3 million+ US customers.

High Tide has recently become free cash flow positive (FCF+), meaning it generates more cash than it consumes, allowing for further growth and expansion. The company’s price-to-sales ratio of 0.3 also suggests that it is undervalued compared to its peers, offering potential for significant growth in the future.

Grok AI

Looking ahead, analysts are also bullish on HITI stock. It has an implied upside of 143.24% for its share price within the next 12 months and carries a “Strong buy” recommendation. Analysts expect a top-line expansion of 11.88% this year, along with EPS growth.

Green Thumb Industries (GTBIF)

Green Thumb Industries (OTCMKTS:GTBIF) is a multi-state operator (MSO) in the U.S. It focuses on cannabis cultivation, production and retail distribution.

Grok was also quite bullish on GTBIF stock. Here’s what it had to say:

Green Thumb Industries’ ability to control its supply chain from production to retail sales allows for better quality control and cost management. The company’s extensive network of dispensaries and stores also provides a stable revenue stream and opportunities for growth.

By focusing on the infrastructure and support of the cannabis industry, Green Thumb Industries is less susceptible to the fluctuations and risks associated with pure-play producers. Finally, the company’s leadership has a proven track record of success in the cannabis industry, providing confidence in their ability to navigate the market and make strategic decisions.

Grok AI

GTBIF’s financials and forecasts suggest it may be undervalued. For one, it’s expected to reach positive earnings within the next 12 months, as its forward P/E ratio is 72.86. Its price-to-sales ratio of 2.72 is also lower than its trailing 12-month measure, so some top-line improvement is also expected.

Curaleaf Holdings (CURLF)

Curaleaf Holdings (OTCMKTS:CURLF) is another vertically integrated cannabis company with a strong retail dispensary store presence and production capabilities.

Grok said the following about CURLF stock:

Similar to Green Thumb Industries, Curaleaf’s vertical integration allows for better control over its supply chain and cost management. Curaleaf’s extensive network of dispensaries and stores provides a stable revenue stream and growth opportunities.

Curaleaf offers a wide range of cannabis products, including flowers, edibles, and concentrates, catering to various consumer preferences. Finally, the possible rescheduling of cannabis could lead to significant growth for Curaleaf, as it would open up new markets and increase institutional participation.

Grok AI

Like the other Grok AI cannabis stock picks, CURLF’s earnings are currently negative but expected to change within the next 12 months. The company also expects top-line expansion for its revenue.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.

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