Can TCNNF Stock Overtake CURLF Stock to Dominate the Industry?
As the marijuana marketparticularly the U.S. marijuana marketcontinues to mature, there's going to be a wealth of opportunities for marijuana stocks to emerge from relative obscurity to unseat the top dogs. That is, after all, the way of the marketleaner, stronger, more growth-oriented upstarts usurping long-standing market kings. At least, thats how the market is supposed to work in theory. Before I attempt to answer today's question, lets first get a few things out of the way. Trulieve Cannabis Corp (OTCMTKS:TCNNF) is not exactly an unknown commodity; its just a pot stock that I have yet to focus on. Well, for starters, Ive long held (and still hold) that Curaleaf Holdings Inc (OTCMKTS:CURLF) has the best opportunity to lead the U.S. marijuana market when legalization arrives. Chart courtesy of StockCharts.com  But that doesnt mean that CURLF stock will be the only winner in that scenario. In fact, it likely wont see the largest gains due to Curaleaf stock being relatively large and well-known. Instead, the best potential for profit lies in the lesser-known pot stocks, like Trulieve stock. Again, lesser-known here is relativemany people have heard of TCNNF stock and have been able to see some tremendous gains over the past year. In fact, over the past 12 months, its outpaced CURLF stocks impressive 127% gains with a climb of over 200% in that same time period. Well, as mentioned before, TCNNF is smaller than many of its larger competitors, barely cresting the top 10 marijuana stocks by market cap at around $7.0 billion. Curaleaf Holdings Inc, by contrast, is sitting at around $10.0 billion in market cap. That disparity means that while CURLF stock tends to be more stable and reliable, Trulieve Cannabis Corp is better suited for speedier growth. Now, again, both companies have the potential to grow when the American marijuana market opens up; this is not a zero-sum game. But comparing the two is a helpful method to illustrate TCNNF stocks potential. This is because, while its smaller than Curaleaf Holdings Inc, Trulieve holds many of the same positive properties that have had me excited about CURLF stock for years now. They both are U.S.-based, making them ideal for profiting from the legalization surge. They are both set to near $1.0 billion in revenue in 2021. Trulieve reported revenue of about $193.8 million in Q1 2021, a 15% gain from the previous quarter. It also acquired Harvest Health & Recreation Inc, which itself generated about $89.0 million in revenue. Even without accounting for growth, the newly merged company is almost certainly going to crest the $1.0-billion revenue horizon in 2021. (Source: Trulieve Reports Record First Quarter 2021 Revenue of $193.8M, Net Income of $30.1M and Adjusted EBITDA of $90.8M, Trulieve Cannabis Corp, May 13, 2021.) As Ive written previously, thats a big deal. Its a milestone that many investorsboth retail and institutionalwill be impressed by. And with that positive impression comes more freely flowing capital. It also means that Trulieve Cannabis Corp is breathing rarified air, among the few marijuana producers that earn over 10 figures in annual revenue. The next thing that sets Trulieve stock apart from competitors is the eye the company has focused on growth. While many other marijuana stocks have opted to focus on profit (something Ive long criticized given the current opportunities in the market for expansion in advance of a global legalization wave likely to hit in the next decade), Trulieve Cannabis Corp has done the smart thing: it has invested in the future. It acquired Harvest Health, as mentioned above, and has continued its expansion across the U.S. with several additional key acquisitions. Trulieve recently nabbed a licensed adult-use dispensary location from Natures Remedy of Massachusetts Inc. in Worcester, MA. (Source: Trulieve Completes Acquisition of Marijuana Retail License for Dispensary Location in Worcester, Massachusetts, Cannabis Investing News, June 30, 2021.) The company also acquired a location in Central Florida last month. (Source: Trulieve Expands Access to Medical Cannabis in Central Florida with New Winter Park Location, Trulieve Cannabis Corp, June 23, 2021.) This expansionist mindset is key to capitalizing on the market growth that were set to see in the coming years. In fact, it is, to my mind, the single best indicator of great long-term success. After all, the greater foundation these pot stocks build today, the more ready theyll be to take advantage of the opportunities of tomorrow. To that effect, Trulieve Cannabis Corp checks a lot of boxes. While its lesser status in the industry will likely mean higher volatility, I ultimately see TCNNF stock as relatively stable and on a high growth path. While it may not come to dominate the industry, I do believe it has one of the best shots to see immense growth in the coming months and years as legalization expands around the world and the U.S., while Trulieve Cannabis Corp steadily amasses more and more power in the industry. Analyst Take  The future of the marijuana industry is heavily reliant on legalization around the globe, and more specifically in the U.S. This means that the companies that are most prepared to take advantage of a legalized U.S. market are the most likely to see huge gains, in my opinion. To that end, Trulieve stock is extremely well-positioned to see substantial gains in the coming years as the industry expands. The one downside: Id caution investors that TCNNF stock may be a touch on the volatile side due to its relatively smaller size, but I still believe it to be a strong pot stock moving forward.