Trulieve Cannabis (OTC: TCNNF) is sizzling hot. So far this year, its share price has soared nearly 60%. That’s a far better performance than any other major U.S. or Canadian cannabis producer, and it comes on the heels of Trulieve’s 47% gain last year.Â
But such tremendous momentum raises the question of whether the company can keep the good times rolling. Is it too late to buy Trulieve Cannabis? Or is the marijuana stock poised to deliver more fantastic gains in the future?
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A growth machine
Perhaps the best argument for why it’s not too late to buy Trulieve is that the company continues to be a growth machine. Trulieve reported sales of $120.8 million in the second quarter, a 26% jump from the previous quarter and a record high for the company.Â
This growth seems likely to continue, at least in the near term. Trulieve raised its full-year 2020 revenue guidance to between $465 million and $485 million. The midpoint of that range is nearly 22% higher than the midpoint of the company’s previous full-year revenue outlook. It’s also an 88% increase from Trulieve’s total revenue last year.Â
Trulieve continues to dominate Florida’s medical cannabis market with a market share of close to 50%. It’s adding new stores in the Sunshine State, which could further cement its lead. At the same time, Trulieve is expanding outside of its home state. The company now has operations in four other states: California, Connecticut, Massachusetts, and Pennsylvania.Â
Unlike many of its peers, Trulieve is already consistently profitable. It posted net income of $6.6 million in Q2. The company’s Q2 adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) totaled $60.5 million, marking the tenth consecutive quarter of positive results. Trulieve even ranks as the second most profitable pot