Pot stocks have been crashing for the past year, and the coronavirus pandemic is only making things worse. The Horizons Marijuana Life Sciences ETF (TSX:HMMJ) holds a basket of some of the top pot stocks in North America, and it’s down around 30% already in 2020.
In the past year, it’s fallen by about 70%. However, there’s one pot stock that hasn’t been on the same trajectory, and that’s Trulieve Cannabis Corp (CSE:TRUL).
The U.S.-based multi-state operator is down a more modest 33% over the past 12 months and year to date, it’s declined by 17%. They’re still losses, but they’re nowhere near as bad as other pot stocks have been.
One of the reasons why Trulieve may be better: its focus is on a strong medical marijuana market in Florida. Demand for medical marijuana is likely going to be a lot more consistent than demand for recreational pot, which is much more discretionary. And that’s why if tougher economic times are ahead, stocks dependent on the recreational market for growth could be riskier buys.
Another reason Trulieve stands out from its peers: it’s profitable. Both in 2019 and 2018, the company reported a profit. While it did get help from fair value adjustments, many cannabis companies still struggle with staying out of the red even with gains and other income propping up their bottom lines.
With strong market dominance in Florida, a consistent medical marijuana segment, and good financials, Trulieve may be one of the safer cannabis stocks for investors to buy today.