Cresco Labs Had a Good Start to 2020. Can It Keep It Up?
U.S. cannabis companies are certainly catching attention this year. No doubt, they were overlooked while eyes were on the bigger Canadian cannabis players, like Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC). But while the bigger names failed to impress with their downfall the past few quarters, Illinois-based Cresco Labs (OTC: CRLBF) is emerging as a good cannabis pick for 2020.
Cresco Labs' incredible revenue growth of 215% in the first quarter is a proof of the rising cannabis demand in the U.S. It grew revenue to $66.4 million compared to $21.0 million in the year-ago period.
Sequentially, revenue also rose from $41.4 million in the fourth quarter of fiscal 2019. The company has been reporting revenue growth from the last two quarters while Canadian peers were battling the headwinds. Canada's slow roll-out of legal stores is responsible for pulling down revenue growth for most. Meanwhile, more U.S. states have been working to legalize cannabis.
Source Fool.com
