Over the past year, cannabis stocks have captured investors’ attention as the industry inches toward mainstream acceptance. Although returns have varied, the promise of federal banking access has loomed as a potential huge catalyst. 

President Donald Trump is actively lobbying Congress to pass the Secure and Fair Enforcement Regulation (SAFER) Banking Act, which would grant legal marijuana businesses full access to U.S. banks, according to a recent report. His push has lifted multi‑state operators and reignited optimism that the Senate could clear the legislation ahead of the 2026 midterms.

Against this backdrop, two standout cannabis stocks, Ascend Wellness Holdings (AAWH) and Cresco Labs (CRLBF), are well-positioned to reap the rewards. Both companies boast top ratings from Wall Street analysts and offer significant upside potential if SAFER Banking wins approval.

For investors eager to ride the next wave of cannabis growth, AAWH and CRLBF pair strong balance sheets with a clear catalyst: federal banking reform that could unlock substantial value.

Cannabis Stock #1: Ascend Wellness Holdings

Based in New York, Ascend Wellness Holdings (AAWH) is a leading multistate cannabis company. The firm cultivates, processes, and sells adult‑use and medicinal cannabis products across seven licensed states. It operates 31 dispensaries and six state‑of‑the‑art cultivation facilities. The company offers in‑house brands such as Simply Herb, Ozone, and Common Goods.
Valued at a small market cap of $90 million, shares of Ascend Wellness have underperformed the broader market, falling 66% over the past 52 weeks. However, the stock has clawed back 12.8% year‑to‑date, buoyed by renewed momentum around marijuana banking reform under Trump.

Regarding valuation, Acsend Wellness stock is trading at very attractive price multiples. Its forward price-sales multiple stands at 0.16x, giving an 85% discount from the sector median of 1.15x.

In the fourth quarter of 2024, Ascend Wellness Holdings reported revenue of $136 million, a 4% decline year over year, and generated adjusted EBITDA of $30.2 million, beating Street estimates by roughly 24%. 

While the top-line dip reflected industry-wide headwinds, net income came in at a loss of  $16.8 million, shrinking from $28.3 million in Q3 2024.

CEO Sam Brill said. “This was achieved through our team’s success in substantially completing our $30 million in annualized cost savings target, ahead of plan, and with this milestone completed, we have turned our efforts to driving revenue growth. 

Moreover, in Q4, the company generated record free cash flow of $30.1 million, and cash and cash equivalents stood at $88.3 million

As we look ahead, Wall Street analysts project that Ascend will generate $544 million in revenue in 2025 and report a loss per share of $0.24. 

Ascend Wellness is a consensus “Strong Buy” from five Wall Street analysts, with a split of four “Strong Buy” ratings and one “Moderate Buy.” The stock also offers monster upside potential of roughly 400%, based on a mean price target of $2.30.

Cannabis Stock #2: Cresco Labs

Based in Chicago, Cresco Labs (CRLBF) is the nation’s largest vertically integrated cannabis company, operating across cultivation, manufacturing, distribution, and retail channels in 18 U.S. states. Through its Sunflower Wellness, Sunnyside dispensaries, and curated product brands, Cresco Labs drives nationwide sustainable growth by focusing on innovation, compliance, and strategic market expansion.

Valued at a $441 million market cap, shares of this cannabis company have also fallen 59% over the past year, mainly due to Florida voters’ rejection of adult‑use legalization in November. However, the stock has rebounded 50% over the last month, driven by optimism surrounding the DEA’s March 2025 rescheduling hearing and renewed federal banking‑legislation momentum.

Trailing the pullback, the stock is trading at just 0.62x forward sales, significantly below its own historical average of 2.24.

In 2024, Cresco Labs generated $724 million in revenue, up 6.3% year‑over‑year. Its vertically integrated model drove scale, with wholesale and manufacturing accounting for 58% of total sales. Adjusted EBITDA climbed 15% to $200 million, lifting the margin by nearly 510 basis points to 28%.

Despite a $60 million net loss, Cresco produced record operating cash flow of $132 million and free cash flow of $113 million. The company ended the year with $141 million in cash and equivalents, providing ample liquidity for organic growth and potential M&A.

On May 9, the company is expected to release Q1 results. Analysts expect EPS at a loss of $0.03 with revenue to reach $165.5 million. 

Wall Street remains bullish on Cresco stock with a consensus “Strong Buy” rating. of six covering analysts, four rate Cresco a “Strong Buy,” one a “Moderate Buy,” and one a “Hold.” The $2.40 average 12‑month price target implies 170% upside from current levels.