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24x7Report > Blog > Finance > This Red-Hot Cannabis Stock Has Nearly Doubled in 2025. Should You Buy It Here?
Finance

This Red-Hot Cannabis Stock Has Nearly Doubled in 2025. Should You Buy It Here?

Last updated: 2025/08/20 at 5:20 AM
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This Red-Hot Cannabis Stock Has Nearly Doubled in 2025. Should You Buy It Here?
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Curaleaf (CURLF) has been one of many large beneficiaries of the newest hashish fervor. CURLF inventory has climbed roughly 80% 12 months so far and up greater than 230% over the previous three months as merchants worth in a potential federal rescheduling tailwind and the corporate’s regular push to stabilize operations.

Curaleaf persistently stands out for traders monitoring multi-state operators (MSOs). Its expansive U.S. retail footprint, broad product lineup, and rising worldwide presence place it as a high choose when coverage dangers start to ease and speculative capital flows again into the sector.

www.barchart.com
www.barchart.com

Valued at $1.7 billion by market cap, Curaleaf runs one of many largest U.S. dispensary networks and sells a broad array of consumer-facing hashish merchandise, flower, vapes, edibles and hemp-derived drinks. The corporate has been working by what administration calls a “home stabilization” plan: trimming overhead, focusing shops on profitability, and leaning into higher-margin branded merchandise. That mixture of scale and product attain is precisely what merchants wish to personal if federal coverage strikes to cut back hashish’ authorized friction.

On paper, CURLF’s valuation seems engaging. Its worth/gross sales (P/S) ratio of 1.5 is notably beneath the sector median of three.5, suggesting a extra reasonably priced inventory in comparison with its friends.

Curaleaf isn’t simply using headlines. It’s opening shops and increasing distribution for branded merchandise. The corporate operates roughly 150+ U.S. dispensaries and has been rolling out client merchandise into non-dispensary channels, notably inserting hemp-derived seltzers and different gadgets into mainstream retail.

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These distribution strikes check whether or not Curaleaf can construct CPG-like attain past the regulated dispensary channel, a possible multiplier if federal guidelines loosen. Internationally, Curaleaf is consolidating possession in key markets and getting ready for scaled launches overseas, which may add higher-margin income over time.

Earlier this month, Curaleaf reported its Q2 earnings, which got here above expectations and confirmed indicators of stabilization, but additionally reminded traders that the enterprise isn’t out of the woods. Q2 income got here in at $314.5 million, down about 8% year-over-year, however gross margin expanded to roughly 49% and adjusted EBITDA landed round $65–66 million on a 21% margin. Curaleaf has reported a rise in worldwide hashish gross sales, with a 74% rise year-over-year (YOY) in Q1 2025, highlighting sturdy progress in worldwide markets like Germany and the UK.

On an adjusted foundation, the corporate nonetheless reported a internet lack of $0.06 or $50.6 million, so the highway to constant profitability continues.

Turning to the stability sheet, working money movement for the primary half was constructive about $51 million, however Curaleaf carries significant internet debt, with money of roughly $102 million towards internet debt north of $500 million.

So we are able to say that the margins are bettering, money movement is transferring in the correct course, however leverage and GAAP losses hold threat elevated.

Turning to Wall Avenue, analysts appear pretty upbeat on CURLF inventory, tagging it as a “Average Purchase.” Of the eight analysts Barchart coated, 5 name it a “Sturdy Purchase,” one echoes the “Average Purchase” view, one recommends a “Maintain,” and one flags a “Sturdy Promote.” With a 12‑month common goal of $3, there’s nonetheless over 13% upside potential from present ranges.

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www.barchart.com
www.barchart.com

On the date of publication, Nauman Khan didn’t have (both straight or not directly) positions in any of the securities talked about on this article. All info and knowledge on this article is solely for informational functions. This text was initially revealed on Barchart.com

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