A Wall Street Analyst Just Called This Sector a "Generational Wealth Opportunity"

U.S cannabis companies are some of the best opportunities in the market today. After all, we haven't seen an entire multibillion-dollar industry move from a shadowy black market into the mainstream since the end of Prohibition in 1933. Furthermore, U.S. cannabis companies are showing strong revenue and EBITDA growth, even in "mature" states that have been legal either on a medical or recreational basis for some time.

Yet U.S. multistate operators (MSOs) still operate under the shadow of federal illegality. That means cannabis companies have to borrow in the private market at much higher rates than a normal business would. In addition, since they are still considered illegal businesses, U.S. cannabis companies can't deduct most operating expenses from their taxes. When you're taxed on your gross margin and not operating margin, it's really hard to make money.

Still, one Wall Street analyst just came out with a long and in-depth report as to why U.S. cannabis companies could be the biggest "generational wealth builder" in the market today, while also pointing out his favorite and least favorite plays. Interestingly, his favorites differ from mine.

Source Fool.com