Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two years. But there is no question some big-name stocks performed better than others since the pandemic bottom.
Curaleaf’s Big Run: One company that has been a great investment in the past two years has been U.S. multi-state cannabis operator Curaleaf Holdings Inc CURLF.
While the Canadian cannabis market has struggled in recent years, the U.S. market has expanded rapidly on a state-by state basis. Although cannabis remains illegal on a federal level, Curaleaf now operates 128 dispensaries in 23 different states. In addition to its organic growth, Curaleaf has also expanded its national footprint via targeted acquisitions, such as Bloom Dispensaries in Arizona.
At the beginning of 2020, Curaleaf shares were trading at around $6.50. By the beginning of March, the stock was down to $5.24 after news of COVID-19 spreading in China prompted concerns about a U.S. pandemic.
Curaleaf bottomed at $2.54 during the pandemic-driven March sell-off. Fortunately for Curaleaf investors, the sell-off didn’t last long.
By June, Curaleaf shares made it back up to $6, and the rally continued through the November presidential election.
The victory of Joe Biden, and a surprise blue wave gave Democrats control of both the Senate and House, sending cannabis stocks soaring on optimism that cannabis legalization in the U.S. may be just around the corner.
Curaleaf In 2022, Beyond: The stock ultimately peaked at $18.38 in February 2021 during a retail investor-fueled short squeeze before pulling all the way back to $6.40 today.
Still, investors who bought Curaleaf on the day it hit its 2020 pandemic low and held on have generated a decent return on their investment. In fact, $1,000 in Curaleaf stock bought on March 23, 2020, would be worth about $2,125 today.
Looking ahead, analysts are expecting a big rebound for Curaleaf stock in the next 12 months. The average price target among the 17 analysts covering the stock is $14.10, suggesting 112% upside from current levels.