Best Ancillary Cannabis Stocks For Your October Watchlist

What marijuana stocks should you invest in for 2022? The best cannabis stocks to purchase saw a rise in interest in July and August. But September delivered steep declines to the overall market that has affected pot stocks.  In general, the ancillary marijuana stock market is one sector that has experienced sharp drops to start the year. Businesses that help the cannabis industry but don’t deal with the plant directly are known as ancillary cannabis companies. In general, a lot of companies support the cannabis industry.

During the first half of 2022, the value of a few cannabis-related stocks dropped significantly. Many of these marijuana-related stocks are currently available to investors for a significant discount. Some of these stocks may offer prospective cannabis investors an excellent place to start their long-term investments or a chance to profit from recent market dips. You could add these 2 marijuana stocks to your watchlist for October.

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Best Ancillary Marijuana Stocks For October Watchlist

  1. Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM)
  2. Agrify Corporation (NASDAQ: AGFY)

Hydrofarm Holdings Group, Inc.

Hydrofarm Holdings Group, Inc. is well-known for selling hydroponic and controlled-environment farming instruments and products. The business generally provides a wide range of cannabis-growing products. The company produces a variety of products, such as high-intensity grow lights, temperature control systems, and growing materials. The company revealed on November 1st that it has purchased Innovative Growers Equipment, Inc., a number of innovative items, and a clever brand. The business teamed up with AXEON Water Technology in January to offer cutting-edge reverse osmosis water filtration technology and solutions.hyfm

The company released its second quarter 2022 results on August 9; net revenues decreased from $133.8 million to $97.5 million. The gross profit also decreased, going from $29.6 million to $7.3 million. After revisions, gross profit increased from $9.1 million to $30.2 million. Hydrofarm saw a net loss of $203.3 million, or a negative $4.53 per diluted share, as opposed to its net gain of $2.3 million, or $0.05 per diluted share. As a result, the net loss for the second quarter of 2022 includes an inventory reserve of $10.2 million and a non-cash charge for goodwill impairment of $189.6 million. Additionally, we can determine which group is most strong by looking at Hydrofarm’s stockholders. Institutions own the most shares in the company with a 57% holding.

HYFM Stock Performance

HYFM Stock closed on October 3rd at $1.97 down 7.51% in the past five trading days. The stock has a 52-week price range of $1.87-$45.01 and is down 93.04% year to date. According to analysts at CNN Business HYFM stock has a 12-month average price target of $3.88 per share. In this case, this would be an increase of 97.70% from its last trading level of $1.97.

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Agrify Corporation

Agrify Corporation, an American corporation, provides reliable equipment and software to the indoor farming market. The business currently offers vertical farming systems, integrated grow racks, and LED grow lights. Agrify’s state-of-the-art software and technology solutions enable businesses to operate at the highest levels of dependability, effectiveness, and quality while spending the least amount of money possible. The company’s services include consulting, engineering, and construction. Precision Extraction Solutions and Cascade Sciences, two well-known providers of tools and services for analyzing, processing, and extracting hemp and cannabis, were recently acquired by the company. The company acquired Lab Society in February, a pioneer in cannabis extraction, distillation, and solvent separation solutions with a $10 million yearly revenue. Lab Society, a pioneer in cannabis extraction, distillation, and solvent separation solutions with a $10 million yearly revenue, was acquired by the business in February.

Agrify reported a 63.5% rise in revenue to $19.3 million for the second quarter compared to the same period last year. Additionally, revenues increased from the previous year’s year-to-date total of $18.8 million to the current year’s year-to-date total of $45.4 million. From the first quarter’s gross profit of $527k, or 4.5% of revenue, to the second quarter’s gross profit of $1.6m, or 8.3% of revenue, there was an increase in gross profit. In comparison to the same period the previous year, the company’s second-quarter net loss increased to $93.4 million, or $3.51 per diluted share, from $5.6 million. Due to the decline in the cannabis business, the company is changing its revenue projection for the upcoming fiscal year 2022. Agrify’s updated revenue projection for Fiscal Year 2022 lies between $70 million and $75 million.

AGFY Stock Performance

AGFY stock closed on October 3rd at $0.4484 down 31.86% in the past month of trading. The stock has a price range of $0.37-$23.55 and is down 95.54% year to date. According to analysts at CNN Business AGFY stock has a 12-month average price target of $1.50 per share. In this case, this would be an increase of 239.75% from its last trading level of $0.4484.

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Investing In Top Ancillary Cannabis Stocks In Q4 2022

In September, these top cannabis stocks hit new lows; as they begin to rebound, investors may find value in the stocks. You can examine a company’s financial statements and recent news releases to decide whether an asset is suitable for your trading strategy and portfolio. In addition, understanding technical indicators and chart patterns can help you make better trading decisions. These ancillary cannabis stocks to watch in October may be among the best ones related to cannabis cultivation.

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