Green Thumb Industries Inc C.GTII

4 Surefire Stocks to Buy in a Biden Bull Market

[DaveInCalgary]

 

As the young bull market begins to stretch its legs, these top-tier companies can shine.

Sean Williams (TMFUltraLong)   Jan 10, 2021 at 5:51AM

For many, saying goodbye to 2020 couldn't have come soon enough. But that's not the case for the investment community. Despite the benchmark S&P 500 losing over a third of its value in the first quarter of 2020, it ended the year higher by 16%. That's nearly double its average annual return over the last four decades.

 

The good news for investors is that this young bull market might be just starting to stretch its legs. The Fed's insistence on maintaining historically low interest rates through at least 2023, coupled with President-elect Joe Biden's pledge to offer additional fiscal stimulus to support businesses and reignite the U.S. economy, could lead to an unstoppable bull market.

 

If you want to take advantage of this Biden bull market, the best way to do so would be to buy the following four surefire stocks.

Green Thumb Industries

U.S. marijuana stocks can also thrive in a Biden bull market, even if Biden does nothing more than decriminalize cannabis at the federal level and reschedule the drug. State-level legalizations and organic growth in already legalized states should be more than enough to make multistate operator Green Thumb Industries (OTC:GTBIF) a surefire winner.

One factor that's made Green Thumb such a success is the company's selectivity with regard to the states it operates in. Though it has 50 open dispensaries and holds licenses for up to 96 dispensaries in a dozen states, it's the company's presence in Illinois, Nevada, and even New Jersey that's raising eyebrows. These are all potential billion-dollar annual markets by 2024. Illinois is a limited license state, which'll help thwart competition to some degree, while tourist-reliant Nevada is expected to lead the nation in cannabis spending per capita by mid-decade.
 

Green Thumb Industries can "go green" well before most of its peers, too. Though dried cannabis flower has historically been associated with marijuana use, approximately two-thirds of Green Thumb's sales are derived from derivatives (edibles, vapes, concentrates, topicals, and infused beverages). Cannabis derivatives yield much better margins than potentially commoditized dried flower, which'll play a key role in pushing Green Thumb to recurring profitability.

After more than doubling its sales in 2020, Green Thumb can, once again, double its revenue by 2022. That makes it a good bet to outperform in a Biden bull market.