Ancillary Cannabis Stocks on the Rise: Top Picks for Investors
The US cannabis industry is experiencing rapid growth, with sales expected to reach $45.8 billion by 2025. Ancillary companies, which support the cannabis sector through technology, supplies, and services, are increasingly crucial for market expansion. Recent headlines indicate that US lawmakers are pushing for federal legalization, sparking optimism across the sector. As the legalization debate intensifies, ancillary companies stand to benefit significantly from industry-wide growth. Investors looking to capitalize on this momentum should watch top-performing ancillary cannabis stocks. These companies provide necessary services that fuel dispensary and cultivation operations, making them essential players in the cannabis ecosystem.
Technical analysis is a valuable tool for making informed investment decisions. By studying stock price patterns, investors can identify entry and exit points. Pairing this analysis with proper risk management is essential. Setting stop-loss orders and diversifying portfolios help minimize losses in a volatile market. As the cannabis industry continues to evolve, it’s important to stay updated on legalization news and use sound strategies to mitigate risk.
In October, ancillary marijuana companies are seeing notable percentage gains. These businesses are essential to the cannabis sector’s growth, offering services and products that support dispensaries and cultivators. Below, we highlight three companies—Leafly Holdings, Inc. (LFLY), Village Farms International, Inc. (VFF), and High Tide Inc. (HITI)—that have recently experienced significant gains in the last week. Each company has carved out a unique role in the cannabis ecosystem, providing various services from e-commerce to greenhouse production.
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Best Ancillary Cannabis Stocks to Watch Now: Last Week’s Top Performers
- Leafly Holdings, Inc. (NASDAQ: LFLY)
- Village Farms International, Inc. (NASDAQ: VFF)
- High Tide Inc. (NASDAQ: HITI)
Leafly Holdings, Inc.
Leafly Holdings, Inc. is a prominent cannabis marketplace and resource hub. The company is best known for its vast database of cannabis strains, dispensaries, and educational content. It serves millions of cannabis consumers in the US by offering a platform to explore and purchase marijuana products online. Leafly’s largest presence in the US is through its partnerships with local dispensaries, numbering over 5,000 nationwide. These dispensaries list their products on Leafly’s website, allowing customers to browse and place orders for pickup or delivery. The company’s strong user base and connection to thousands of dispensaries make it a key player in the e-commerce side of the marijuana industry.
Financially, Leafly has faced some challenges but has shown resilience. In its most recent quarterly earnings report, the company revealed that its total revenue for the quarter was $11.7 million. This marked a slight decline compared to the previous year, but the company has managed to maintain a steady user base. Operational expenses were reduced, signaling a focus on cost management. Despite the decrease in revenue, Leafly remains optimistic, projecting future growth driven by increased dispensary partnerships and user engagement. As the US cannabis market expands, Leafly’s digital presence makes it well-positioned to capitalize on this growth.
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Village Farms International, Inc.
Village Farms International, Inc. is a Canadian-based company diversified into the cannabis sector. Known for its large-scale greenhouse operations, the company produces cannabis under its wholly-owned subsidiary, Pure Sunfarms. Village Farms has built a strong presence in the US in the hemp and CBD market. The company operates across North America, with over 1,200 retail partners selling its hemp and CBD products. Though Village Farms does not directly own or operate cannabis dispensaries in the US, its significant hemp business contributes to its foothold in the cannabis space.
Village Farms has experienced impressive financial growth, particularly in its cannabis and hemp operations. In its most recent quarterly report, the company reported $77.6 million in total revenue, a substantial portion of which came from cannabis sales. Village Farms’ cannabis segment alone generated $34.5 million in revenue, up from $22.7 million in the previous quarter. The company has consistently improved its gross margin, standing at 34% in the latest report, signaling operational efficiency. Village Farms remains focused on expanding its cannabis business while continuing to capitalize on the growing demand for hemp and CBD products across the US and Canada.
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High Tide Inc.
High Tide Inc. is a retail-focused cannabis company with a significant presence in the US and Canada. The company operates one of the largest retail chains in Canada, and in the US, it has established a growing online business. High Tide’s US operations focus primarily on e-commerce through its subsidiary, Grasscity, which sells cannabis accessories and related products. The company has also ventured into the CBD market with its online retail platform, Smoke Cartel. High Tide’s retail stores and online platform network make it a key player in the North American cannabis retail landscape. However, it does not operate traditional cannabis dispensaries in the US.
From a financial standpoint, High Tide has shown remarkable growth. In its most recent quarterly financial results, the company reported $124.5 million in revenue, a 56% increase year-over-year. Its retail segment contributed significantly to this growth, fueled by strong performance in both physical stores and e-commerce platforms. High Tide’s adjusted EBITDA reached $10.2 million, indicating solid profitability despite the challenges faced by the broader cannabis market. The company continues to focus on expansion, particularly through acquisitions and new store openings, which are expected to drive further revenue growth. High Tide’s diverse portfolio of cannabis accessories and CBD products positions it for continued success in the ancillary cannabis sector.
Ancillary Cannabis Stocks Showing Strong Upside Momentum
In conclusion, ancillary marijuana stocks are crucial to the growth of the cannabis industry, providing essential services and products that support dispensaries and cultivators. As the US cannabis market is projected to reach $45.8 billion by 2025, companies like **Leafly Holdings, Inc. (LFLY)**, **Village Farms International, Inc. (VFF)**, and **High Tide Inc. (HITI)** are positioned to benefit from the sector’s continued expansion. Recent progress toward US cannabis legalization only strengthens their prospects.
Leafly’s focus on e-commerce, Village Farms’ expertise in hemp and CBD, and High Tide’s extensive retail network make them standout players in the ancillary space. Investors should watch for price targets; for example, analysts have set a target of $2.50 for **LFLY**, $4.50 for **VFF**, and $4.20 for **HITI** over the next 12 months. By combining technical analysis and proper risk management strategies, investors can capitalize on these companies’ upside potential as the cannabis industry grows.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
