We made a splash last month when we initiated coverage of the cannabis industry. Sector director Kris Inton noted that we expect the industry to grow 9 times through 2030, and the stocks of several of the companies are undervalued by our metrics. However, these companies will struggle to earn economic profits as they spend on growth, adds Inton. As such, none of the cannabis companies has yet carved out an economic moat.
But these five companies--also new to Morningstar analyst coverage during the past several weeks--have.
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Susan Dziubinski does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.