Are These The Best Marijuana Stocks To Buy For Long-Term Investments?
In the cannabis sector, there are many ways to invest in top marijuana stocks for 2021. For instance, in the past few years, one area has seen significant growth and delivered strong returns to investors. To clarify, ancillary cannabis companies are those companies that support the marijuana industry without touching the actual plant. Presently, These ancillary companies have seen substantial growth and expansion as the cannabis market developed.
In short, some ancillary companies supply the nutrients, hydroponic systems, and lighting supplies that are used to grow cannabis. Similarly, others provide packaging and other products used to consume cannabis. Ultimately these top cannabis stocks have performed with more stability than vertically integrated pot stocks. At the same time, many of these ancillary marijuana stocks also provide investors with a dividend for the long-term hold.
This has attracted many hedge funds and money managers to this area of the cannabis sector for long-term investing. As the cannabis industry continues to expand in the US these companies are showing significant revenue growth. For investors, it’s always important to do your due diligence before investing in a company. Studying how a stock performs and researching the company’s latest earnings can help you find the best investments. Let’s take a closer look at the leading ancillary cannabis companies in 2021.
Top Marijuana Stocks To Watch In 2021
- Innovative Industrial Properties, Inc. (NYSE:IIPR)
- The Scotts Miracle-Gro Company (NYSE:SMG)
- GrowGeneration Corp. (NASDAQ:GRWG)
- Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)
- Greenlane Holdings, Inc. (NASDAQ:GNLN)
Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc. is a Maryland corporation focused on the acquisition, ownership, and management of specialized industrial properties leased to experienced, state-licensed operators for their regulated medical-use cannabis facilities. At the present time, IIP owns 72 properties across 19 states nationwide. IIP saw first quarter 2021 total revenue of an estimated $42.9 million an increase of 103% year over year. The company declared its second-quarter 2021 dividend of $1.40 per share. This represents an increase of 6% over the first quarter dividend. The dividend equates to an annualized of $5.60 per share and is the 11th dividend increase since its inception in 2014.
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The Scotts Miracle-Gro Company
To begin with, The Scotts Miracle-Gro, is one of the world’s largest marketers of branded consumer lawn and gardening products and has a hand in the cannabis market. The company’s wholly-owned subsidiary Hawthorne Gardening is a leading supplier of nutrients, lighting, and hydroponic equipment used in the process of growing cannabis. In its fiscal second quarter of 2021 Hawthorne beat its sales guidance with sales rising 66% year over year to $363.8 million.
Hawthorne’s segment profits increased 74% from the year prior to $41.4 million. For its fiscal second-quarter earnings Scott’s reported sales of $1.8 billion up from $1.38 billion the previous year. Scott’s pays an annual dividend of $2.48 per share with a dividend yield of 1.38%. In June Scott’s increased its fiscal 2021 guidance expecting company-wide sales growth in the range of 17%-19%. The company is expected to release its third-quarter financials on Wednesday, August 4th before the opening.
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GrowGeneration Corp. is the nation’s largest chain of specialty hydroponic and organic garden centers. At the present time, the company has 58 organic garden centers across 12 states and is growing rapidly in key cannabis markets. GrowGen markets and distributes organics, lighting, and hydroponic equipment to assist in the growing process mainly used by cannabis cultivators. The company reported first-quarter 2021 financials with revenue up 173% year over year to $90 million. As a result, For 2021 GrowGen raised its revenue guidance to $450-$470 million and an adjusted EBITDA guidance of $54-$58 million. As of now, GrowGen is expecting to have 60 gardening centers across 15 states by the close of 2021. In the next five years, the company is expecting to have over 100 locations operating in the US.
Hydrofarm Holdings Group, Inc.
Presently, Hydrofarm Holdings Group, Inc. is a leading distributor and manufacturer of hydroponics equipment and supplies for controlled environment agriculture. The company’s offering including high-intensity growth lights, climate control solutions, and growing media, as well as a broad portfolio of innovative and proprietary branded products. Hydrofarms has been in business for over 40 years helping growers in the US and Canada achieve premium-quality farming products. In the first quarter of 2021, the company reported net sales up 66.5% to 111.4 million. As a result, the company saw gross profit increase by 100.8% to $23.2 million or 20.8% of net sales. Hydrofarm revised its full-year 2021 outlook to net sales growth of 30-40% and adjusted EBITDA of $36-$42 million.
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Greenlane Holdings, Inc.
Presently, Greenlane Holdings, Inc. is one of the largest cannabis accessories companies serving the global market. The company is a platform that sells accessories, child-resistant packaging, and specialty vaporization products in the US. For now, Greenlane has a customer base of more than 11,000 retail locations across the world. Greenlane’s merged with KushCo Holdings, Inc. (OTC: KSHB) in an all-stock deal creating a new provider of cannabis ancillary products and packaging.
Consequently, After the merger is complete the combined companies are projected to have a pro forma revenue of around $310 – $330 million in 2021. Greenlane released its first-quarter 2021 financials that show a strong start this year. Basically, the company saw Greenlane Brand sales set back-to-back quarterly sales records and account for 25% of total revenue. In the first quarter, Greenlane Brands saw sales of $8.5 million. Total revenue increased to $34 million in the first quarter of 2021. e cannabis industry.
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