Let’s cut straight to the chase. GrowGeneration (NASDAQ:GRWG) stock could be one of the best stocks to buy right now for huge gains in November and December.

The logic is pretty simple.

Pollsters and betting markets are saying that Joe Biden has a strong chance of winning the 2020 U.S. Presidential Election. His running mate, Kamala Harris, said in the most recent VP debate that, if elected, she and Biden will federally decriminalize cannabis. Of course, this strongly implies that if Biden wins, federal legalization of cannabis will likely follow suit.

This will spark the long overdue cannabis boom in the U.S., as pot stocks roar higher. Perhaps none more-so that GRWG stock, since GrowGeneration is 100% levered to the U.S. cannabis market, is rapidly expanding its presence in that market, and has a robust long-term growth narrative that supports enormous upside potential.

So, with all that in mind, GRWG stock looks like a strong buy today.

Here’s a deeper look.

GrowGeneration Is a Long-Term Winner

The long-term growth narrative supporting GrowGeneration is quite compelling, and supports enormous upside in GRWG stock if the cannabis market in the U.S. scales.

In short, growing cannabis is not a straightforward, easy process. Most of the time, it requires a specialized process called hydroponics, which is basically just a soil-free way of growing cannabis (and therefore, an easier, cheaper and more scalable way of growing pot). Demand for hydroponics supplies will soar as the U.S. cannabis market matures and scales. But the current state of the hydroponics industry is not ready for this surge.

There are about 1,000 hydroponics stores in the U.S. The market is highly fragmented. There are no big brands. There’s zero consistency across markets. And online and omni-channel capabilities are limited.

That’s where GrowGeneration comes in.

Founded in 2014 in Colorado, the $840 million specialty hydroponics retail chain is trying to consolidate, optimize and modernize the cannabis supplies market, and ultimately turn into a modern, national go-to convenience store for cannabis growers. In other words, GrowGeneration is trying to turn into something like the Home Depot (NYSE:HD) for cannabis growing materials.

It’s an ambitious goal, especially since GrowGeneration operates just 29 hydroponics stores across 11 states today. But it’s also entirely doable, given that this is an entirely open market ripe for disruption and consolidation, and that GrowGeneration is attacking the market in an innovative and strategic way.

If GrowGeneration pulls this off, the company could be worth $3.5 billion one day — more than 4X the current market cap.

Thus, the long-term growth narrative supporting GRWG stock is quite compelling.

The Potential “Blue Wave” Catalyst

GRWG stock will take a big leap forward on its long-term growth trajectory if we get a supposed “Blue Wave” in early November — wherein Democrats sweep the White House, Congress and House of Representatives — because a liberal legislature would almost assuredly include federal legalization of cannabis within the next 12 to 24 months.

Is such a “Blue Wave” possible?

According to the experts, yes. FiveThirtyEight gives Joe Biden an 87% chance of winning of the 2020 U.S. Presidential Election, while betting markets put his odds at around 67% — which is the highest they’ve ever been. Meanwhile, FiveThirtyEight gives Democrats a 69% chance of controlling the Senate, and a 95% chance of controlling the House.

In other words, a Blue Wave has a greater than 50% of happening in November.

If such a Blue Wave happens, pot stocks will soar. GRWG stock will soar more than your average pot stock, largely because most pot stocks have robust Canada market exposure, while GrowGeneration is 100% levered to the U.S. market.

To that end, GRWG looks like a compelling buy ahead of what could be an enormous “Blue Wave” catalyst.

Simultaneous Geographic Expansion

Concurrent to the potential “Blue Wave” catalyst, GrowGeneration is geographically expanding its operations to give itself the best chance of accelerating growth in the event of federal cannabis legalization.

The company recently acquired Hydroponics Depot, an indoor and outdoor garden center in Arizona. This represents GrowGeneration’s first foray into the booming Arizona cannabis market, where recreational marijuana sales rose 20% from January to May 2020.

It’s quite likely that — in the event we get a “Blue Wave” in November — GrowGeneration accelerates its selective geographic expansion roadmap, on the idea that many new legal cannabis market will come online over the next few quarters.

In other words, the recent Hydroponics Depot acquisition could be the first in a long string of multiple acquisitions across multiple states — a stretch in which GrowGeneration could go from 29 stores across 11 states today, to 100-plus stores across 20-plus states by the end of 2021.

Of course, if that happens, GRWG stock will fly higher.

Bottom Line on GRWG Stock

GrowGeneration stock is a long-term winner, with two huge near-term catalysts on the horizon in the 2020 Election and potential accelerated geographic expansion.

Of course, that means that GRWG stock looks like a strong buy here and now. This stock could finish the year with a big bang.

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