8 Most Undervalued Pot Stocks to Buy According to Analysts

3. AFC Gamma, Inc. (NASDAQ:AFCG)

Stock Upside Potential: 39.14%

Forward Price to Earnings Ratio (P/E): 5.81

Number of Hedge Fund Holders as of Q3 2024: 6

AFC Gamma, Inc. (NASDAQ:AFCG) provides financial services to the cannabis industry, including real estate loans and loan underwriting. They offer direct and bridge loans ranging from $10 million to $100 million, which is crucial for an industry growing quickly but facing legal challenges. AFCG estimates the cannabis market to be worth about $30 billion. It earns money from interest on these loans, which are secured by real estate, equipment, and licenses.

AFC Gamma, Inc. (NASDAQ:AFCG) is committed to growing through new loans and strategic investments. In October, AFCG announced it provided $41 million in funding to Story of Maryland, LLC. Story MD will use this money to refinance debt and for working capital. Management believes that their financial performance will keep improving and stabilising as long as they find opportunities in key markets.

AFC Gamma, Inc. (NASDAQ:AFCG)’s third-quarter report delivered on November 13, 2024, shows strong earnings and strategic positioning. Net income came in at $1.4 million at the back of $7.2 million in distributable earnings due to successful origination efforts and active portfolio management. It also exceeded the $100 million target for new originations in 2024, showing the company’s capacity to assist top-tier operators in vital cannabis markets.