8 Most Undervalued Pot Stocks to Buy According to Analysts

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1. Green Thumb Industries Inc. (OTC:GTBIF)

Stock Upside Potential: 74.95%

Forward Price to Earnings Ratio (P/E): 17.76

Number of Hedge Fund Holders as of Q3 2024: N/A

Green Thumb Industries Inc. (OTC:GTBIF) makes and sells cannabis products for both medical and recreational use. Its products include flowers, pre-rolled joints, concentrates, vapes, capsules, tinctures, and edibles. The company operates in 15 states with 18 production facilities and 77 stores, and has seven different brands. Green Thumb Industries Inc. (OTC:GTBIF) controls the entire process from growing to selling. In well-established markets, they buy cannabis from other producers to save on expansion costs.

Despite setbacks in legalizing adult-use cannabis in four states, Green Thumb Industries Inc. (OTC:GTBIF) is still in a strong position to benefit from the cannabis market, which is expected to double to around $31 billion. The company’s agreement with Magnolia Bakery, a cupcake and dessert chain that now sells THC-containing products made from hemp, is one factor driving its growth. On November 22, 2024, RISE Dispensaries, a cannabis retail chain owned by Green Thumb Industries, announced the opening of its 100th and 101st locations in Carson City, NV, and Brooklyn Park, MN. RISE Dispensaries sell cannabis products and now have 11 locations in Nevada and 8 in Minnesota.

Green Thumb Industries Inc. (OTC:GTBIF) delivered strong third-quarter results on November 7, 2024, with revenue up 4.2% year over year to $287 million, attributed to strong demand for its cannabis products. It also achieved an adjusted EBITDA of $89 million and a GAAP net income of $9 million. Additionally, GTBIF entered into a 5 year $150 million syndicated bank loan facility that strengthened its balance sheet, thus allowing it to retire a $225 million senior secured debt.

While we acknowledge the potential of GTBIF as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than GTBIF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

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