Top US Cannabis Stocks for September 2023 Investments
As we trade this week in September 2023, the landscape of the cannabis market in the United States is undergoing considerable change. Recent federal government debates regarding rescheduling cannabis have sent shockwaves across the financial markets, particularly among investors interested in the marijuana industry. In general, this trend has increased interest in the top US marijuana stocks to watch this month. With regulatory changes likely on the horizon, now is an excellent moment to research the most recent developments, industry statistics, and smart tactics for investors navigating this changing market.
The cannabis sector in the United States continues to show amazing development potential, with industry analysts expecting significant revenue gains in the future years. According to current figures, legal cannabis sales in the United States are predicted to exceed $30 billion per year by 2025, indicating the industry’s rapid expansion. Investors are looking for chances in the stock market as legalization spreads across states and possibly federal reforms loom. Investing in marijuana stocks, on the other hand, necessitates a thorough understanding of market dynamics, such as the use of technical indicators for trading decisions and the execution of appropriate risk management methods. We will look at the top US marijuana stocks positioned for potential gains in September 2023 while highlighting the need to make informed decisions to navigate this volatile sector successfully.
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September Harvest: Top US Marijuana Stocks for Your Investment Radar
- Ayr Wellness Inc. (OTC: AYRWF)
- Curaleaf Holdings, Inc. (OTC: CURLF)
- Green Thumb Industries Inc. (OTC: GTBIF)
Ayr Wellness Inc.
Ayr Wellness Inc. is a well-known Florida cannabis company. Sixty of the company’s 70 marijuana-related firms are based in Florida. To expand in Illinois, the company purchased Herbal Remedies Dispensaries, LLC. Adult marijuana use can potentially boost the desirability of Ayr, Massachusetts companies. In Pennsylvania, the business has opened its sixth linked dispensary. Ayr intended to open its 86,000-square-foot processing and growing plant in December after receiving regulatory certification from Arizona. By acquiring Levia Cannabis Infused Seltzer in 2022, the firm made a significant investment in the beverage market.
Second Quarter 2023 Highlights
- Revenue up 18% Y/Y to $116.7 Million, Excluding Discontinued Operations
- Company Delivers Record Adjusted EBITDA1 of $29.4 Million, up 78% Y/Y, 12% Sequentially, with Adjusted EBITDA Margin of 25%
- GAAP Loss from Operations Improved 81% Y/Y, 79% Sequentially to $(4.5) Million, Excluding Discontinued Operations
Outlook
The Company remains committed to its financial health and is positioning itself to achieve sustainable long-term growth and profitability across all markets of operation. AYR expects to generate revenue and Adjusted EBITDA growth in the second half of 2023 and into 2024 and to generate positive GAAP cash flow from operations for the calendar year 2023.
AYR’s expectations for future results are based on the assumptions and risks detailed in its Management’s Discussion and Analysis (“MD&A”) for the period ended June 30, 2023, as filed on SEDAR+ and with the U.S. Securities and Exchange Commission (“SEC”).
AYRWF Stock Performance
AYRWF stock closed on September 18th at $2.83, up 232.94% in the last trading month. The stock has a 52-week price range of $0.5660-$4.41 and is up 13583% year to date. According to analysts at CNN Business, AYRWF stock has a 12-month average price target of $4.04 per share. In this case, this would represent an upside of 33.54% from the last price of $2.83.
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Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc. is a well-known international provider of cannabis consumer products dedicated to enhancing people’s lives via cultivating, sharing, and celebrating the plant’s power. As a high-growth cannabis company known for quality, knowledge, and dependability, the Company and its brands, including Curaleaf, Select, and Grassroots, provide industry-leading service, product range, and accessibility across the medical and adult use sectors. In general, Curaleaf now has 152 dispensaries in 19 states and employs around 5,500 people in the United States. In addition, Curaleaf International is the largest vertically integrated cannabis company in Europe, with a specialized supply and distribution network that spans the entire European market. Specifically, the company combines cutting-edge cultivation, extraction, and production with cutting-edge science and research.
Second Quarter 2023 Summary vs. Same Year-Ago Quarter
- Revenue in the second quarter of 2023 increased 21% to approximately $5.0 million compared to $4.1 million for the same period in 2022. The improvement was driven by an increase in cannabinoid segment revenues of 151% to $1.9 million compared to $0.7 million for the same period in 2022, partially offset by lower revenues in the non-cannabinoid segment.
- All-in cost per gram of dry flower was $0.70. There is no comparative data from the prior year, as the Company did not harvest crops at its Colombian operations in the year-ago quarter.
- Gross profit, including a $0.2 million inventory provision, increased 10% to $2.7 million, compared to a $2.5 million gross profit in the year-ago quarter, which included a $0.2 million inventory provision. Adjusted gross profit (a non-GAAP financial measure defined and reconciled herein), which excluded such inventory provisions, increased by 8% to $2.9 million compared to $2.7 million.
- Gross margin was 54.7% compared to 60.5% last year. Adjusted gross margin (a non-GAAP financial measure defined and reconciled herein), which excluded inventory provisions, was 58.8% compared to 66.3%.
- Operating expenses in the second quarter of 2023 improved to $5.9 million compared to $7.8 million for the same period in 2022.
- Net loss was $3.6 million compared to $1.0 million. Net loss in the year-ago quarter included a $6.9 million gain on investment following the Company’s sale of a portion of its minority equity stake in Cansativa and a $1.3 million gain on remeasurement of warrant liability. Excluding the gains, the net loss in the year-ago quarter would have been approximately $9.2 million.
- Adjusted EBITDA (a non-GAAP financial measure defined and reconciled herein) improved to $(2.1) million compared to $(3.5) million. The improvement reflects the benefits of the Company’s restructuring and cost-reduction initiatives over the past year.
Reiterated 2023 Outlook
With the Company’s current commercial traction and visibility and its ongoing work to drive cost savings and improve capital efficiency—Clever Leaves is reaffirming its full-year 2023 financial outlook. The Company expects its full-year revenue to range between $19 million and $22 million, with an adjusted gross margin of between 58% and 63%. The Company also expects its 2023 adjusted EBITDA to range between $(13.6) million and $(10.6) million. Additionally, Clever Leaves anticipates approximately $0.5 million to $0.7 million of annual capital expenditures in 2023, representing an estimated 50% reduction compared to 2022.
CURLF Stock Performance
On September 18th, CURLF shares closed at $5.14, up 84.30% in the past month of trading. The stock is currently trading in a 52-week range of $2.19-$7.90 and is up 19.66% year to date. According to analysts at CNN Business, CURLF stock has a 12-month average price target of $4.50 per share. In this case, this would represent a decrease of 16.14% from its last trading price of $5.14.
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Green Thumb Industries Inc.
Green Thumb Industries Inc. is a key player in the cannabis consumer packaged goods (CPG) market in the United States. There are currently 83 Green Thumb sites throughout 14 states. GTI will soon have 111 retail licenses, with more on the way. According to the terms of the first agreement with the privately held Cookies Brand, GTI will open a Cookies on the Las Vegas Strip in 2021. Following the successful acquisition of Dharma Pharmaceuticals, Green Thumb has announced the debut of its marijuana company in Virginia. By acquiring Leafline Industries, the company expanded into Minnesota. On July 1st, the firm began selling adult-use cannabis in four Maryland locations.
Highlights for the second quarter and six months ended June 30, 2023
- Second quarter revenue of $252 million increased 2% sequentially; first half 2023 revenue increased 1% to $501 million year-over-year.
- GAAP net income of $13 million or $0.05 per basic and diluted share.
- Adjusted EBITDA was $76 million or 30% of revenue.
- Six months cash flow from operations of $93 million, net of $52 million of tax payments.
- Cash at quarter end totaled $149 million.
- Six RISE retail stores were opened: two in Pennsylvania; two in Virginia and one each in Minnesota and Nevada.
GTBIF Stock Performance
On September 18th, GTBIF shares finished at $11.30, up 66.18% in the last trading month. The stock has a 52-week price range of $6.42-$16.50 and is up 30.79% year to date. According to analysts at CNN Business, GTBIF stock has a 12-month average price target of $14.07 per share. In this case, this would represent an increase of 18.25% from its last trading price of $11.30.
Your Guide to the Best US Cannabis Investments in September 2023
In conclusion, as September 2023 unfolds with the promise of potential federal cannabis rescheduling, the US marijuana industry stands at a pivotal crossroads. The statistics forecast substantial growth, making it an exciting time for investors to explore the top marijuana stocks featured on our watchlist. However, it’s crucial to remember that investing in the cannabis sector, like any market, comes with inherent risks.
As the landscape evolves, staying informed, employing technical indicators for trading decisions, and implementing prudent risk management strategies will be essential for those looking to seize the opportunities while mitigating potential setbacks. Whether you’re a seasoned investor or just entering the green market, the US marijuana stocks in our September 2023 watchlist are poised to offer intriguing possibilities. Still, a diligent and informed approach will be your most potent ally in navigating this dynamic and ever-changing landscape.
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