Top Cannabis Stocks To Watch This Week
Are you searching for the top cannabis stock plays for 2023? The stock market has increased to begin 2023, much to the surprise of many investors, and cannabis stocks are attempting to ride the wave. The marijuana penny stock market is one area of the cannabis industry that is growing. For the convenience of those who are unsure, a penny stock is any stock that trades for less than $5. Due to their well-known extraordinary market volatility, these marijuana stocks have a high risk/high reward potential for short-term investors.
After setting fresh lows to finish 2022, many cannabis equities are now trading higher this year. As the cannabis market grows this year, this may present a chance for new investors. Numerous US cannabis businesses are preparing themselves to expand along with the market as the US cannabis sector continues to expand.
The marijuana ancillary stock market was one industry in 2022 that saw significant losses. Cannabis ancillary firms serve the cannabis industry but don’t work with the actual plant. Numerous businesses frequently assist the cannabis industry. The cannabis industry can gain from companies that offer lighting and equipment for cannabis cultivation. California also continues to grow and companies there are showing gains in the market in 2023. Let’s take a look at 3 of the top marijuana-related equities rising this month as we approach mid-February.
Top Ancillary Cannabis Stocks For February 2023
- Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM)
- The Scotts Miracle-Gro Company (NASDAQ: SMG)
- Glass House Brands Inc. (OTC: GLASF)
Hydrofarm Holdings Group, Inc.
Hydrofarm Holdings Group, Inc. is well-known for producing agricultural supplies and equipment for hydroponic and controlled conditions. Typically, the company provides a wide range of cannabis-growing supplies. The company produces a wide variety of products, such as temperature control systems, high-intensity grow lights and growth boosters. The business said on November 1st that it had acquired New Growers Equipment, Inc., a business with a lot of innovative products and a recognizable name. In order to offer cutting-edge reverse osmosis water purification technology and solutions, the company partnered with AXEON Water Technology in January.
Hydrofarm recorded net sales of $74.2 million in the third quarter of 2022 as opposed to $123.8 million in the same quarter of 2021. Additionally, the gross profit fell from $30.0 million to $5.9 million, a further decline. Gross profit was $7.8 million as opposed to $33.0 million after adjustments. In contrast to its net income of $17.3 million, or $0.37 per diluted share, the firm recorded a net loss of $(23.5) million, or $(0.52) per diluted share. In addition, the business now projects that net revenues would total between $330 million and $347 million for the entire 2022 fiscal year.
HYFM Stock Performance
HYFM Stock closed on February 10th at $1.75 up 45.83% in the past month of trading. The stock has a 52-week price range of $1.18-$21.25 and is up 12.90% year to date. According to analysts at CNN Business HYFM stock has a 12-month average price target of $2.58 per share. In this case, this would be an increase of 46.31% from its last trading level of $1.75.
The Scotts Miracle-Gro Company
Scotts Miracle-Gro, the world’s largest name-brand maker of consumer lawn and garden products, has entered the cannabis market. Hawthorne Gardening, a wholly-owned subsidiary of the business, provides hydroponic equipment, lights, and fertilizers for cannabis production. In January, Scotts added True Liberty Bags and Luxx Lighting to its Hawthorne collection. With the acquisition, Hawthorne will be able to expand its already impressive line of lighting products. Hawthorne has not altered its year outlook despite a fall in revenue.
Sales across the board for the three months that concluded on December 31, 2022, fell by 7% to $526.6 million. Also, sales for the U.S. consumer segment climbed by 8% to $369.0 million from $342.4 million in 2017. Sales for the Hawthorne section fell 31% to $131.5 million from $190.6 million during the same quarter last year, highlighting the hydroponic industry’s ongoing difficulties. In comparison to the preceding year’s loss of $50.0 million, or $0.90 per share, the company recorded a GAAP loss of $64.7 million, or $1.17 per share.
[Read More] 2 Marijuana Stocks To Know About In 2023
SMG Stock Performance
SMG stock closed at $76.70 on February 10th up 28.41% in the last month. Currently, the stock has a 52-week price range of $39.06-$145.26 and is up 61.68% year to date. According to analysts at CNN Business SMG stock has a 12-month price target of $77.50 per share. This forecast represents an increase of 1.04% from its last trading price of $76.70.
Glass House Brands Inc.
Glass House Brands Inc., a vertically integrated cannabis and hemp company operate in one of the country’s fastest-expanding industries. The business focuses on the California market, where it develops cutting-edge, green brands to meet the needs of customers across many industries. Forbidden Flowers, Glass House Farms, and Mama Sue Wellness are a few of the company’s well-known products. In September 2021, the company will invest in a 5.5 million square foot greenhouse in Southern California. The new company’s chief financial officer is Mark Vendetti. In December, PLUS, a well-known California edibles business, was bought for $25.6 million.
The Company anticipates Q4 2022 revenue of approximately $31 million to $32 million, within the upper end of guidance of $30 million to $32 million, reflecting record wholesale revenue of over $15 million and the full quarter impact of the three NHC stores acquired in September of 2022. Gross margin for Q4 2022 is expected to be in the low 30% range and in line with Q3 2022 as production costs have remained relatively flat versus $134 per pound in Q3, consistent with guidance.
Glass House’s Southern California farm produced nearly as much in July as it did in Q2 after harvesting its first crop in May. In September, Glass House completed the acquisition of the Morro Bay Natural Healing Center dispensary. After the Morro Bay dispensary deal is approved, Glass House will have 7 retail dispensaries by the end of the third quarter. In Santa Ynez, California, Glass House expanded its retail offerings in January by opening a New Pharmacy Dispensary. In reality, the facility is Glass House’s 9th dispensary—an increase from 3 at the beginning of 2022.
GLASF Stock Performance
GLASF stock ended at $3.13 on February 10th up 41.63% in the last month’s trading. Currently, the stock has been trading in a 52-week range of $1.78-$6.54. GLASF stock is 63.86% year to date.
[Read More] What Will We See In The Cannabis Industry 2023
Short-Term Trading US Pot Stocks In 2023
Several predicted events in the next months may result in a boost in the value of these marijuana stocks in 2023. Finding the top cannabis businesses on the market might be made simpler by looking at their financials and press releases. To profit from the present market instability, many seasoned investors are actively trading short-term holdings in the top cannabis companies. Use technical indicators and chart patterns to identify the best entry points and take-profit areas prior to establishing a position. You can increase your ability to carry out profitable transactions by tenaciously looking for favorable opportunities. These can be among the top stocks to watch for 2023 due to the notable volatility of the most well-known US marijuana businesses.
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