One of the Top Penny Stocks to Buy in 2020 (210% Potential)

The legal cannabis market is already worth $10.8 billion, and that figure could skyrocket to $66.3 billion by 2025. And one of the top penny stocks to buy in 2020 has the potential to jump 210% from there.

This year, across 10 U.S. states, there will be 17 ballot measures aimed at legalizing either medical or recreational marijuana. Of those, the ones that can achieve enough signatures will go before voters in November 2020 for a final decision.

The states that have possible ballot measures include Florida, Arizona, Idaho, Nebraska, North Dakota, South Dakota, Arkansas, Mississippi, New Jersey, and Missouri.

Not all of these states will have measures that get approvals from voters, but any handful of successes will be a major catalyst for our top penny stock pick.

Uncovering the best pot stocks is going to involve some deep digging and a time investment.

We're uncovering one today. But there's plenty more from The National Institute for Cannabis Investors. The NICI team stays at the forefront of this exploding industry and can show you some of the top marijuana stocks to watch in 2020.

Before we show you our 224% gainer, here is what you need to know to make money with penny stocks. Then we'll reveal one of the top stocks to own in 2020 that's going to benefit from marijuana legalization.

Follow These Tips to Make Money with Penny Stocks

Penny stocks can be lucrative, but they also come with a higher risk profile.

If you're going to invest in these stocks, Money Morning recommends that you limit your exposure and use something like the 50-40-10 allocation model. With this, just 10% of your overall portfolio will go into speculative picks, which include penny stocks.

Further, you can avoid many of the common penny stock scams by using some extra caution. If someone calls you out of the blue or sends you an e-mail to tell you about a once-in-a-lifetime opportunity, be skeptical.

Now, here is our pick for one of the best penny stocks right now, getting ready to soar as cannabis legalization continues to spread across the United States.

One of the Top Penny Stocks to Buy in 2020

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Cresco Labs Inc. (OTCMKTS: CRLBF) is a Chicago-based specialty healthcare company that has grown into one of the largest cannabis firms in the United States.

The company grows, manufactures, and sells medical cannabis and medical cannabis products across the United States and is expanding to areas where recreational marijuana has been approved.

It currently has a stake in Florida and Arizona but is actively looking to expand as marijuana legalization continues to sweep across the nation.

When Cresco acquired Arizona Facilities Supply LLC last year, it reported that it was serving 170,000 medical marijuana patients.

In 2019, the company had a failed deal with VidaCann in Florida to take over a chain of dispensaries, but it hasn't given up. It is still in the market for a major opportunity in the Sunshine State. According to Cresco CEO Charlie Bachtell, establishing operations in Florida is a primary goal and will be an "important milestone" for the organization.

On a positive note, Cresco was able to safeguard $120 million in capital by backing away from the VidaCann deal. At the same time the deal was scrapped, the company announced a $38 million sale-and-leaseback deal for two of its properties in Michigan and Ohio.

Combined, this added $158 million to the company's balance sheet. But there's more.

In Dec. 2019, Cresco announced the closing of a $50 million sale-and-leaseback agreement with GreenAcreage. This is a 200,000-square-foot cannabis growth and processing facility in Illinois, which is the largest of its kind in the state.

Full adult legalization in Illinois comes online on Jan. 1, 2020, and Cresco anticipates annual sales in that state alone to reach $4 billion.

In total, Cresco now has more than $200 million in capital on its balance sheet that it can apply to building its nationwide cannabis empire. This is fabulous news for the company and its shareholders.

It's still just a matter of time before Cresco fulfills its goal of jumping into the Florida market, which is projected to reach $1.3 billion in sales over the next five years.

In the meantime, it is making the most of its other opportunities, which include having dispensaries in both California and Nevada. The company owns Origin House, which is California's largest marijuana distributor.

On Dec. 17, Cresco won the U.S. Cannabis Company Game Changer Award at the MJBizDaily Awards in Las Vegas based on its demonstration of business expansion, pushed boundaries, true innovation, and business results.

And it is certainly producing results.

In 2018, Cresco tripled its workforce, and its sales grew 296%, jumping from $10.9 million to $43.2 million.

Cresco shares are currently trading at $5.96, and the lowest estimate from analysts puts the stock at $9.24, giving investors a conservative return potential of 55%.

However, the average price target from analysts is $12.35, which is a 107% upside, and the high price target is $18.48, which gives today's investor a possible 210% return.

America's 1% Are Converging on the Next "Gold Rush"

The Fortune 500, big investment firms, and the Wall Street elite are all pouring billions into a new agribusiness market.

It's an investment strategy that's already worked for them before - for example...

Vanguard, Credit Suisse, and RBC were behind an IPO in this industry that shot up 659% in under one year...

Deutsche Bank and UBS were behind the scenes of a 641% windfall...

And Goldman Sachs, Black Rock, and Morgan Stanley lined their pockets with a whopping 3,813% profit...

But the biggest gains are yet to come. As medical research in this area trucks on, this could become a $1 trillion global industry. Individual investors could become millionaires practically overnight.

I know the numbers are big, but the research backs it up.

What's more, we've picked three stocks in this industry with the biggest upside potential.

Just click here to see for yourself...

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