A Motley Fool analyst called it a "safe bet" in the cannabis market

Shares of Green Thumb Industries, a mid-cap manufacturer and retailer of cannabis products, are a “safe bet” in this market, according to Motley Fool analyst and consultant Jeff Siegel. Unlike its competitors, the company is profitable, and its healthy balance sheet gives it financial flexibility, he explains.

Green Thumb can be considered a safe bet in the cannabis industry, writes Jeff Siegel, an analyst and consultant at The Motley Fool.

The company has earned a reputation as one of the best in the cannabis sector for the quality of its management, as evidenced by its financial results, he notes. In the first quarter, Green Thumb’s revenue rose 7.4% year-over-year to $300.2 million, while net income increased by more than 85% to $15.4 million.

Siegel also highlights the company’s strong financial position—as of March 31, it had approximately $344.5 million in cash and cash equivalents, with total debt of $289.9 million. This enabled Green Thumb to repurchase about 6 million shares for approximately $33.3 million in the first quarter. At the end of the quarter, it purchased an additional 7.4 million shares from its shareholders.

This suggests that the company's management believes the stock is undervalued, while the company generates enough cash to reward shareholders, according to a Motley Fool analyst.

He also points out that the company’s management takes a selective approach to expanding its RISE Dispensaries retail network, rather than “chasing growth at any cost.” RISE currently has 110 locations across various U.S. states.

All of this sets Green Thumb apart from its competitors: dozens of companies expanded too quickly, took on excessive debt, or repeatedly diluted shareholders’ stakes just to stay afloat, the article states.

Green Thumb shares are traded on the OTC market, and their price has jumped 20% over the past 12 months.

Seven Wall Street analysts are tracking the company’s performance, and all unanimously recommend buying its stock. The average price target is $15.4, which implies nearly 2.2 times the stock's closing price on July 31. On that day, the stock rose by just under 1.5% to $7.1.

In December 2025, U.S. President Donald Trump signed an executive order to reclassify marijuana from the strictly regulated Schedule I—which includes heroin and LSD—to Schedule III, alongside the painkiller ketamine.

In April 2026, the U.S. Department of Justice reclassified cannabis and all cannabis-based medications; however, this does not mean automatic legalization at the federal level. Under the law, states may independently impose restrictions on its sale.