Green Thumb Industries (OTC: GTBIF), SunPower (NASDAQ: SPWR) and Genmab (NASDAQ: GMAB) are all up this month, and are trading for at least 35 times earnings. Instead of being overpriced, though, there are solid reasons investors see potential in these hot stocks.

All three have debt-to-equity ratios below 0.90 and double-digit year-over-year revenue growth in their most recent quarters, allowing them to benefit from the expected growth in their relative industries.

Green Thumb Industries is that rare cannabis retailer that is turning a profit despite industry headwinds such as inflation and cannabis oversupply. The company's shares are up 4% in the past month, and the stock has a price-to-earnings ratio (P/E) of 41. The reason Green Thumb stock could still go higher is it is well placed to benefit from the growth in cannabis sales in the coming years.

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Source Fool.com