Is Cresco Labs a Buy?

Cresco Labs (OTC: CRLBF) is one of the leading companies in the marijuana industry. However, the share price of the multi-state operator has crashed by 75% over the past 12 months as the excitement the industry once enjoyed looks to be long gone. Is this an opportunity for investors, or are they better off avoiding Cresco Labs?

When Cresco Labs last reported results in November, its sales figure was a bit underwhelming. At $210 million, revenue for the third quarter was down 2% year over year. Despite the opportunities that new and emerging markets presented, falling prices have been hurting the business. And looking at its quarter-over-quarter revenue growth of late, it's obvious that Q3's results were simply the continuation of a troubling trend -- one that has hampered many other MSOs as well.

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