Best Non-Plant-Touching Cannabis Stocks to Watch in July 2025
The U.S. legal cannabis market continues to expand rapidly. Total sales are projected to reach nearly $45 billion by 2025. Growth is expected to continue at a double-digit rate over the next several years. Despite market volatility, marijuana penny stocks have drawn increased attention from retail traders. These low-priced equities offer high potential returns. However, they also come with higher risks and frequent price swings. Therefore, using technical analysis is critical. Traders should look for key support and resistance zones before entering. Breakouts from tight ranges often signal momentum. Moreover, volume spikes can confirm trend reversals. Still, traders must manage risk carefully. Setting stop-loss orders near technical levels helps limit losses. Keeping positions small can prevent emotional decision-making. As the sector matures, smart trading strategies become more important.
Recent news has added fuel to the marijuana stock narrative. While federal reform remains uncertain, state-level legalization continues to gain ground. Bipartisan bills are being introduced more frequently. This progress adds optimism to the long-term outlook. Yet, regulatory delays can cause sharp corrections in penny stocks. For this reason, traders must remain disciplined. Technical tools like moving averages and RSI indicators can offer signals. Additionally, chart patterns such as flags or triangles help define potential setups. But even with a solid setup, no trade is guaranteed. That’s why proper risk management is non-negotiable. Limit each trade’s risk to no more than two percent of account value. Avoid chasing large green candles or emotional entries. Wait for pullbacks and confirmation. Finally, track industry headlines daily. Legislative news can send marijuana penny stocks soaring—or crashing. Stay informed, stay nimble, and protect your capital.
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Best Ancillary Marijuana Stocks to Buy Now: July 2025 Watchlist
- GrowGeneration Corp. (NASDAQ: GRWG)
- Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM)
- Scotts Miracle-Gro Company (NYSE: SMG)
GrowGeneration Corp. (GRWG)
GrowGeneration is one of the largest hydroponic and garden supply retailers in the United States. The company operates over 70 stores in 22 states. Its largest presence is in California, Colorado, Florida, Michigan, and New York. Additionally, it runs a robust e-commerce platform and several distribution hubs. These hubs ensure product access for both small growers and large-scale cultivators.
GrowGeneration supplies equipment to cannabis growers and traditional gardeners. The company focuses on lights, nutrients, and irrigation systems. As a result, it plays a vital role in the indoor cultivation supply chain. Though it does not handle cannabis directly, its products support many legal growers. This makes it a major ancillary player in the industry. If the cannabis market rebounds, GRWG is well positioned to benefit. Investors should keep an eye on its ability to regain sales momentum and expand margins through operational efficiencies.
Latest Financials
In the first quarter of 2025, GrowGeneration posted net revenue of $35.7 million. This represented a year-over-year decline due to store closures in 2024. Although top-line sales dropped, gross margin improved to 27.2%. This was achieved through better inventory management and reduced discounting. The company also narrowed its product line to focus on higher-margin offerings. Proprietary brand sales climbed significantly, now making up nearly one-third of cultivation-related revenue.
Despite a net loss of $9.4 million, the company maintained strong liquidity. It held over $50 million in cash and carried no debt. Adjusted EBITDA was negative, but cash burn slowed. Store closures and staff reductions trimmed overhead. While full-year guidance was withdrawn, leadership expressed cautious optimism. They continue focusing on margin improvement and brand development. If industry conditions improve, GrowGeneration has the flexibility to reopen stores and expand its reach.
[Read More] Best U.S. Cannabis Penny Stocks to Trade Now – July 2025 Watchlist
Hydrofarm Holdings Group, Inc. (HYFM)
Hydrofarm is a leading manufacturer and distributor of hydroponic equipment in North America. The company supports controlled environment agriculture, especially indoor cannabis cultivation. Hydrofarm operates nine distribution centers across the U.S., Canada, and Spain. Its largest U.S. operations are in California, Oregon, and Colorado. These regions are also home to major cannabis cultivation markets.
The company offers a wide product line. This includes lighting systems, climate control, grow media, and consumables. Many customers rely on its proprietary brands, which offer higher margins and quality control. Hydrofarm does not grow or sell cannabis. However, its business is directly tied to industry health and grower demand. Therefore, it is highly sensitive to market trends in cultivation. As the cannabis industry stabilizes, Hydrofarm’s products are expected to gain traction again. For investors, HYFM provides leveraged exposure to industry recovery without the regulatory risks of plant-touching companies.
Latest Financials
In the first quarter of 2025, Hydrofarm reported net sales of $40.5 million. This marked a significant decline from the prior year. The company attributed the drop to oversupply in cannabis markets and lower cultivation spending. Gross profit margins shrank slightly, although adjusted gross margin remained above 20%. Sales of proprietary products improved to 55% of revenue, helping to support margins. The company’s shift to in-house brands is part of a long-term strategy.
Hydrofarm posted a net loss of $14.4 million for the quarter. Operating expenses were down year over year due to facility closures and workforce reductions. Adjusted EBITDA turned negative, reflecting ongoing headwinds in the industry. However, Hydrofarm ended the quarter with over $13 million in cash and available credit. Management remains focused on cost discipline and brand consolidation. While near-term results remain pressured, Hydrofarm is positioned for a turnaround if the cultivation market improves.
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Scotts Miracle-Gro Company (SMG)
Scotts Miracle-Gro is a household name in lawn and garden care. Its core business serves homeowners, landscapers, and nurseries across the U.S. Through its Hawthorne Gardening subsidiary, it also plays a major role in the cannabis supply chain. Hawthorne focuses on hydroponic equipment, nutrients, and lighting. These products are used by both large-scale cannabis growers and hobbyists.
Scotts’ largest U.S. market is the Midwest, though Hawthorne is most active in California and Colorado. The company has national distribution through big-box retailers, online platforms, and garden centers. While Scotts does not handle cannabis directly, its Hawthorne segment was built specifically for indoor cultivation. This makes SMG a diversified ancillary play. It offers exposure to the cannabis sector with the stability of a consumer products giant. Investors favor SMG for its cash flow, brand recognition, and conservative risk profile.
Latest Financials
In the second quarter of 2025, Scotts Miracle-Gro reported total sales of $1.42 billion. This was a decline from the same period last year, largely due to seasonal weather impacts and cautious consumer spending. The U.S. consumer division accounted for $1.31 billion of sales, down slightly year over year. However, gross margins expanded to approximately 39%. This improvement was driven by cost efficiencies and stronger pricing across product lines.
The company delivered adjusted earnings per share of $3.98, beating expectations. Hawthorne’s sales remained weak, but signs of stabilization began to emerge. Management reaffirmed its full-year earnings and cash flow guidance. Non-GAAP adjusted EBITDA is expected to reach $570 to $590 million. Free cash flow should be near $250 million. Scotts also maintained a solid dividend payout, giving investors consistent income. If indoor cultivation trends rebound, Hawthorne may become a growth engine once again.
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Top Ancillary Cannabis Plays for July 2025
Ancillary cannabis stocks give investors a way to profit from industry growth without handling the plant. GrowGeneration, Hydrofarm, and Scotts Miracle-Gro are three key players in this space. Each one supports the cannabis supply chain through retail, manufacturing, or distribution.
GrowGeneration is trimming costs and focusing on higher-margin products. Hydrofarm is restructuring and doubling down on its proprietary brands. Scotts offers both stability and cannabis exposure through its Hawthorne unit.
These companies all face pressure from weak cultivation demand. However, they are adapting and improving margins. If federal reform gains traction or state markets expand, these stocks could benefit significantly.
In July 2025, investors should monitor these three names. They represent different ways to gain cannabis exposure while managing risk. As the sector evolves, ancillary stocks like GRWG, HYFM, and SMG could lead the recovery.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
