8 Most Undervalued Pot Stocks to Buy According to Analysts

4. Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI)

Stock Upside Potential: 37.07%

Forward Price to Earnings Ratio (P/E): 7.48

Number of Hedge Fund Holders as of Q3 2024: 6

Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI) is a company that provides loans and financing for commercial real estate. They focus on clients in the cannabis industry, offering secured loans and other financial help to support their businesses. Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI) delivered impressive third-quarter results on November 7, 2024. The company benefited from a strong pipeline in existing states and a growing number of states that have legalized marijuana for adult use. Net income was up 21.7% sequentially to $11.2 million or $0.56 per diluted share. It ended the quarter with $362.3 million in total loan principal across 29 companies with an average yield of 18.3%.

Chicago Atlantic Real Estate Finance, Inc. (NASDAQ:REFI) stands out as one of the most undervalued pot stocks as it trades at a price-to-earnings multiple of 7.41 compared to an average forward P/E of 45 for real estate companies. The company has chosen to be taxed as a real estate investment trust (REIT), so it doesn’t pay federal corporate income taxes. This helps it give more money back to shareholders. Because it distributes 90% of its taxable income to stockholders, it attracts a lot of interest from investors who want regular income.