GrowGeneration (NASDAQ:GRWG) burst onto Wall Street’s radar in mid-August, when GRWG stock just about tripled in a week after the cannabis growing supplies retailer reported blowout second-quarter numbers which comprised 123% revenue growth.
Some pundits want to write off the big rally in GRWG as a pump-and-dump scheme with a sketchy management team.
But I think GrowGeneration stock is much more than that.
This is a unique “pick-and-shovels” pure-play on the U.S. cannabis boom, with compelling long-term upside potential to turn into a Home Depot (NYSE:HD) of sorts for the domestic cannabis growing industry. To that end, GRWG stock looks like a potential multi-bagger over the next few years.
Here’s a deeper look.
U.S. Cannabis Gold Rush
First, it’s important to understand that we are on the cusp of a U.S. cannabis gold rush, the likes of which will spark big growth in cannabis sales across all 50 states. This gold rush is inevitable because everything is shifting in favor of nationwide legalization and robust consumer adoption.
Perception is shifting. About two-thirds of Americans support marijuana legalization today, according to a Pew Research poll, up from a third about a decade ago.