Markets

Why Cresco Labs Stock Jumped Today

What happened

Shares of Cresco Labs (OTC: CRLBF) were jumping 9.8% higher as of 3:10 p.m. EDT on Tuesday. The big gain came after the multi-state cannabis operator announced that it had received approval for an adult-use cannabis dispensary in Naperville, Illinois.

So what

Cresco appears to be well on its way to becoming one of the fastest-growing pot stocks over the next few years. The addition of the company's newest dispensary in Naperville will help fuel growth.

Hand holding bag with a cannabis leaf printed on it.

Image source: Getty Images.

CEO and co-founder Charlie Bachtell noted that the company has been "consistent in choosing locations for our dispensaries in Illinois, focusing on high traffic areas in traditional retail environments." That appears to be the case with Cresco's newest dispensary. Naperville is the third-largest city in Illinois. The company's adult-use dispensary is located in one of the busiest shopping areas in the city.

The Naperville location will be Cresco's tenth dispensary in its home state of Illinois and at least for now, it's last in the state. Illinois only allows companies to operate a maximum of 10 dispensaries. The state's adult-use cannabis market has been tremendously successful since opening for business in January. Year-to-date legal retail cannabis sales totaled $600 million during the first eight months of 2020.

Now what

Cresco's expansion in Illinois could set the stage for another record quarter when the company announces its third-quarter results in a couple of months. With accelerating revenue growth and an improving bottom line, the marijuana stock certainly appears to be one for investors to closely watch. 

Here's The Marijuana Stock You've Been Waiting For
A little-known Canadian company just unlocked what some experts think could be the key to profiting off the coming marijuana boom.

And make no mistake -- it is coming.

Cannabis legalization is sweeping over North America. Eleven states plus Washington, D.C., have all legalized recreational marijuana over the last few years, and full legalization came to Canada in October 2018.

And one under-the-radar Canadian company is poised to explode from this coming marijuana revolution.

Because a game-changing deal just went down between the Ontario government and this powerhouse company...and you need to hear this story today if you have even considered investing in pot stocks.

Simply click here to get the full story now.

Learn more

Keith Speights has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Cresco Labs Inc. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

The Motley Fool

Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

Learn More