High-Growth Potential: Top US Cannabis Stocks to Keep an Eye on in July 2023
The cannabis industry in the United States has grown exponentially in recent years, creating significant interest from investors looking for lucrative opportunities. As we continue in July 2023, the sector is quickly developing, driven by changing legislation, evolving public opinion, and increased market demand.
With rising states legalizing medical and recreational cannabis, the US market is primed for tremendous growth. According to analysts, the legal cannabis market in the United States will be worth $80 billion by 2025, providing an amazing investment opportunity for those who properly select their cannabis companies.
Certain marijuana stocks in the United States have risen to the top of the industry, grabbing the market and producing astounding results. To increase market share and deliver value to their shareholders, these companies have effectively navigated the complicated web of regulations, embraced technological advancements, and developed robust business models.
Against this context, the top US marijuana stocks will hit a significant milestone in July 2023, demonstrating outstanding momentum. Because of a mix of positive legislative reforms, expanding product portfolios, and growing consumer demand, these companies have managed to stay at the forefront of the industry, establishing themselves as the go-to investment options for anyone seeking exposure to the cannabis market.
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Top US Marijuana Stocks to Watch in July 2023
- Cresco Labs Inc. (OTC: CRLBF)
- TerrAscend Corp. (OTC: TSNDF)
- Acreage Holdings, Inc. (OTC: ACRHF)
Cresco Labs Inc.
Cresco Laboratories is a cannabis vertically integrated company based in the United States. The company is presently setting the standard for the development of branded cannabis products in the country. The corporation operates 63 retail locations and 20 industrial sites across 11 states. In March, the firm built locations in Palm Harbor and Lake Worth, bringing the total number of dispensaries in Florida to 28.
Cresco’s sales in the first quarter of 2023 were $194 million, a 3% decline from the previous quarter. Furthermore, the volume of branded equalized units climbed by 32% year on year to 17.6 million. The company’s adjusted gross profit was $89 million, accounting for 46% of sales. During the first quarter, Cresco recorded a net loss of $28 million. Sunnyside now has 63 total locations after the addition of eight new outlets in Florida and Pennsylvania. Furthermore, Cresco’s online retail sales via the company’s e-commerce platform surpassed $1 billion.
CRLBF Stock Performance
CRLBF shares finished on July 11th at $1.88, up 11.90% in the last month of trading. The stock is presently trading in a 52-week price range of $1.30-$4.45, showing a 4.44 percent increase year to date. According to analysts at CNN Business, CRLBF stock has a 12-month median price target of $2.57 per share. In this case, this represents an upside of 36.60% from its last trading price of $1.88.
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TerrAscend Corp.
TerrAscend cultivates and distributes marijuana for medical and recreational use in the United States and Canada. The company operates in Pennsylvania, New Jersey, and California and is a prominent cannabis grower in the United States. The primary goals of the company are to make and promote artisan cannabis goods, as well as hemp and cannabis-infused products. TerrAscend has created numerous products in Maryland under the Kind Tree brand. Vapes and half-gram pre-rolls will be added to the Kind Tree brand’s product line, which is currently made in Maryland from 15 distinct flower varietals.
First Quarter 2023 Financial Highlights
- Net Revenue was $69.4 million, an increase of 0.6% sequentially and 42.8% year-over-year.
- Gross Profit Margin was 48.8%, compared to 44.6% in Q4 2022 and 32.1% in Q1 2022.
- Adjusted Gross Profit Margin1 was 49.0%, compared to 45.3% in Q4 2022 and 40.3% in Q1 2022.
- GAAP Net loss from continuing operations was $19.2 million, compared to $2.0 million in Q4 2022 and $13.8 million in Q1 2022.
- EBITDA from continuing operations1 was $6.1 million, compared to $30.0 million in Q4 2022 and $1.1 million in Q1 2022.
- Adjusted EBITDA from continuing operations1 was $12.2 million, compared to $12.2 million in Q4 2022 and $4.9 million in Q1 2022.
- Adjusted EBITDA Margin from continuing operations1 was 17.6%, compared to 17.7% in Q4 2022 and 10.1% in Q1 2022.
- Cashflow provided by (used in) continuing operations was $8.4 million compared to $7.3 million in Q4 2022 and ($18.8) million in Q1 2022.
- Free cash flow was a positive $5.9 million compared to ($6.9) million in Q4 2022 and ($23.0) million in Q1 2022.
- Cash and Cash Equivalents totaled $32.9 million as of March 31, 2023, as compared to $26.2 million as of December 31, 2022.
TSNDF Stock Performance
TSNDF stock closed at $1.73 on July 11th, up 4.85% in the past month of trading. Currently, the stock has a 52-week price range of $1.00-$3.09 and is up 53.10% year to date. According to analysts at CNN Business, TRSSF stock has a 12-month average price target of $2.46 per share. In this case, this would represent an upside of 42.23% from its last trading price of $1.73.
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Acreage Holdings, Inc.
Acreage Holdings, Inc. is a cannabis grower and retailer with sites across the US. Acreage’s partnership with Canopy Growth Corporation (NASDAQ: CGC) could lead to a purchase if the US embargo is lifted. The economies of New York and New Jersey are predicted to grow significantly over the next several years due to their vast geographic boundaries. Acreage plans to finish building its development center in New Jersey, the state with the most licensed stores.
In the first quarter of 2023, total revenue from acreage was $56.0 million, compared to $56.9 million in the first quarter of 2022 (“Q1 2022”) and $57.5 million in the fourth quarter of 2022. Total gross profit was $26.6 million in the first quarter of 2023, down from $29.5 million in the same period last year. In Q1 2023, the total gross margin was 48%, down from 52% in Q1 2022. Cost increases owing to inflation, as well as price compression, had an impact on margins during the quarter. In the first quarter of 2023, adjusted EBITDA* was $10.6 million, up from $8.6 million in the first quarter of 2022 and $7.0 million in the fourth quarter of 2022. Acreage’s net loss for the first quarter of 2023 was $(14.6) million, compared to $(12.7) million in the first quarter of 2022.
ACRHF Stock Performance
ACRHF stock closed at $0.18 on July 11th, down 23.40% in the last month of trading. The stock has a 52-week price range of $0.155-$1.25 and is down 64.71% year to date.
Investor’s Guide: Ranking the Best US Marijuana Stocks in July 2023
The marijuana industry in the United States has entered a new era of growth and acceptability, and top marijuana stocks are leading the charge. As cannabis legalization spreads nationwide, these marijuana stocks have capitalized on the rising market potential. They have demonstrated their ability to capitalize on technical innovations and develop sustainable business models appealing to consumers and investors.
While the future of the cannabis industry in the US is uncertain, the best marijuana stocks have established themselves as industry leaders, prepared for additional growth and profitability. Investors wanting exposure to the cannabis business should consider these companies as possible long-term winners.
Staying current on the newest developments and market trends as the industry advances is vital. Watching the performance of these top US marijuana companies will provide valuable insights into the cannabis industry’s ever-changing landscape and will help inform investment decisions.
Disclaimer: Investing in marijuana stocks is risky, and investors should do their homework and speak with financial advisors before making any decisions.
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