Our pick for the best penny stock to buy this week could rocket by as much as 161.3% over the next 12 months.
This is thanks the marijuana market. Right now, the cannabis industry is growing quickly. In 2018, Grandview Research reported that the global legal marijuana market was worth $13.8 billion. By 2025, the same source expects the legal cannabis market to soar to $66.3 billion.
We think it has the potential to climb higher.
Money Morning Director of Cannabis Investing Research Greg Miller says the marijuana market could grow to as much as "$300 billion practically overnight."
That's because the United States will eventually fully legalize marijuana. In fact, 10 states are poised to legalize marijuana in one way or another in 2020.
These states include: Arizona, Arkansas, Florida, Idaho, Mississippi, Missouri, Nebraska, New Jersey, North Dakota, and South Dakota.
Even if just a few of these states legalize marijuana, it could create a massive catalyst for the best penny stock to buy right now. The more states that legalize marijuana, the faster the industry grows, the more opportunities there will be for savvy investors who pounce on the right penny stocks now.
And we've got one for you today.
Our top penny stock right now is poised to help you take advantage of the growth sector and seize the kind of returns we're talking about.
This company's goal is to become the biggest marijuana company in the United States. In fact, this top penny stock could soar as much as 161.3% as a result...
The Top Penny Stock to Buy Right Now
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Right now, our top pick, Cresco Labs Inc. (OTCMKTS: CRLBF), is trading slightly above what you'd consider an official penny stock. But its stock is relatively cheap at $6.98 per share, and it's certainly a great buy.
And here's why...
Headquartered in Chicago, Cresco is one of the United States' biggest weed companies. It has stakes in Arizona, but it has plans to expand to states like Florida as legalization grows across the nation.
Last year, it bought Arizona Facilities Supply LLC. This netted Cresco 170,000 medical marijuana patients.
Cresco also almost merged with VidaCann, a Florida-based dispensary line. While the deal ultimately didn't go down, Cresco continues to follow its ambitions to set up shop in Florida. Charlie Bachtell, Cresco's CEO, said establishing itself in the Sunshine State is a large part of company strategy, as well as an "important milestone."
There was certainly a silver lining in the deal not going through in late November, too. Cresco eliminated near-term cash needs of $120 million. The same week the company revealed the canceled merger, Cresco also announced the sale and leaseback of two properties in Michigan and Ohio for a whopping $38 million.
So, $158 million went on Cresco's balance sheet at the end of November. This heavily suggests to shareholders that Cresco's management responsibly handles its money.
Cresco wants to build a significant and enduring company in U.S. weed. And Florida will play a big part in that. While it isn't operating in the state yet, Cresco will eventually have its hands in the Florida market - one that'll climb to $1.3 billion in just five years' time.
Of course, Cresco isn't relying solely on Florida to generate revenue. The firm already owns dispensaries in Nevada and California. And its California dispensary, Origin House, also happens to be the biggest weed distributor in the state.
In 2018, the company increased its workforce threefold. Its sales jumped to $43.2 million from $10.9 million the year prior. That's a 296% increase in one year. Cresco is a testimony to how much growth there is among newly legalized marijuana states.
Cresco shares are selling for $6.98 per share. Though, with a high price target of $18.24 per share, it could rocket as high as 161.3% over the next 12 months...
Shhh... Cannabis Sector Secrets Herein: Wall Street doesn't want you to know this, but... not all cannabis stocks are champs. All pot stocks see highs and lows, but some are just... flops. Don't worry; we've picked what we believe are the "winners from the wannabes." Just click here to get them.