10 Best Pot Stocks To Invest In According to Analysts

7. SNDL Inc. (NASDAQ:SNDL)

Share Price (As of December 23): $1.80

Analyst Upside: 88.71%

SNDL Inc. (NASDAQ:SNDL) is the largest private-sector liquor and cannabis retailer in Canada. The company is one of the top licensed cannabis producers and remains a prominent vertically integrated cannabis enterprise in Canada. SNDL specializes in low-cost biomass sourcing, premium indoor cultivation, product innovation, and low-cost manufacturing facilities, and runs a cannabis brand portfolio.

In the last few years, SNDL Inc. (NASDAQ:SNDL) has registered remarkable growth, with its revenue soaring from $60.9 million in 2020 to more than $909 million last year. However, the Canadian cannabis retailer hasn’t been profitable in its last four financial years. The company is working on a restructuring plan, announced earlier in July, to minimize its annual expenses by $20 million. The company has also improved its cash position and increased its cash balance from $183 million on June 30 to $263 million on September 30, which would be helpful for investments in the next quarters. The company is also working to return value to its shareholders and announced a share repurchase program of almost $70.3 million in November.

SNDL Inc. (NASDAQ:SNDL) is making steep progress and the most recent Q3 recorded revenue gains for the 11th consecutive quarter. This has helped the company achieve a record-breaking gross margin of 26.6%, boosted by improvements in both liquor retail and cannabis operations. The ongoing growth is pushing the company close to cash flow breakeven. Furthermore, the company’s US holdings, which include loans and properties in Michigan, Massachusetts, Nevada, and Texas, protect against potential downturns.

SNDL Inc. (NASDAQ:SNDL) also remains focused on strategic expansion and recently it closed the acquisition of Nova Cannabis Inc. and Indiva Limited. The acquisition of Indiva strengthens SNDL’s position in cannabis edibles in Canada.