Top Cannabis With Momentum In May 2023
Are you looking to invest in the best marijuana stocks in the United States in May? This month, bipartisan US House and Senate members resurrected the SAFE Banking Act, reviving the cannabis industry. In addition, Senator Chuck Schumer stated last week that a committee vote would be held soon after an initial hearing on Thursday. He also emphasized his intention to tie justice reform provisions to SAFE Banking.
Cannabis penny stocks are one area that may provide short-term rewards to new investors. By definition, a penny stock trades for less than $5. Despite the industry’s well-known high level of market volatility, short-term investors may expect to earn substantial returns. These marijuana companies, which are known for their extreme market volatility, have the potential to generate significant returns for short-term investors. The cannabis market will more than treble in the next five years. The top three marijuana stocks with some upside in May 2023 are examined.
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Top Cannabis Stocks With Gains Last Week
- Ayr Wellness Inc. (OTC: AYRWF)
- GrowGeneration Corp. (NASDAQ: GRWG)
- Glass House Brands Inc. (OTC: GLASF)
Ayr Wellness Inc.
Ayr Wellness Inc. is a well-known cannabis company based in Florida. Florida is home to 55 of the company’s 80 marijuana-related businesses. To expand into Illinois, the company purchased Herbal Remedies Dispensaries, LLC. Adult marijuana use could make it popular at Ayr’s Massachusetts-based enterprises. The company has opened its sixth operating affiliated dispensary in Pennsylvania. After gaining regulatory approval from Arizona, Ayr planned to open its 86,000-square-foot processing and growing plant in December. In 2022, the company made a substantial investment in the beverage market by acquiring Levia Cannabis Infused Seltzer.
According to AYR data, revenue for the fourth quarter of 2022 was $124.6 million, up 11.5% from the fourth quarter of 2021 ($111.8 million). According to the report, earnings climbed by 48% this quarter. In Florida, two new dispensaries opened in the fourth quarter of 2018, and two more will open in the first quarter of 2023, bringing the state’s total number of Ayr’s dispensaries to 55. Along with continuing medicinal sales at its retail dispensary in Somerville, Massachusetts, Ayr has now begun adult-use sales in three recently opened retail sites in New Jersey that are currently operating as AYR dispensaries.
In 2022, Ayr’s eight-state service zone will feature 80 dispensaries, making it one of the year’s highlights. In addition, the company signed management services agreements with Tahoe Hydroponics, LLC, and NV Green, Inc. It also completed the purchases of Herbal Remedies Dispensaries, LLC, and Cultivauna, LLC, which owns the Levia brand of cannabis-infused beverages.
Ayr also completed greenhouse building in Massachusetts, North Jersey, and Ohio. The firm anticipates that revenues and adjusted EBITDA in Q1 2023 will be equivalent to those in Q4 2022, and its financial performance will align with market trends. Following that, Ayr anticipates an improvement in operating cash flow, revenue, and adjusted EBITDA. The company announced the opening of four new retail sites in Florida in March. AYR is scheduled to release its first quarter 2023 results on May 16th before the market opens.
AYRWF Stock Performance
AYRWF stock closed on May 12th at $0.9260, up 18.72% in the last five days of trading. Currently, the stock has a 52-week price range of $0.5660-$6.75 and is down 22.83% year to date. According to analysts at Tip Ranks, AYRWF stock has a 12-month average price target of $2.38 per share. In this case, this would represent an upside of 157.02% from the last price of $0.9260.
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GrowGeneration Corp.
GrowGeneration Inc. is well-known in the United States for operating and supplying hydroponic and organic growing facilities. Cannabis farmers can choose from various hydroponic, organic, and lighting options. GrowGen now owns and operates 60 organic gardening businesses in the United States. One of our key focuses has always been managing the GrowGeneration.com website. The website has grown into a one-stop shopping destination with over 10,000 products ranging from nutrition to lighting technologies. The company wants to open more than 100 stores to expand across the country over the next five years. The business plans to build the largest hydroponic farm facility in Los Angeles County in the third quarter of 2021.
Revenues fell $24.9 million, or 30.5%, to $56.8 million for the quarter ended March 31, 2023, compared to $81.8 million for the quarter ended March 31, 2022, according to the company’s first quarter 2023 statistics. The fall in net revenue was principally due to a 36.6% decrease in same-store sales at 55 retail locations and the Company’s e-commerce operations compared to the same period last year, offset partially by an increase in revenue from our distribution and other segment. Overall retail sales in the first quarter were $39.4 million, compared to $64.3 million in the same period the previous year.
In the first quarter, e-commerce revenue was $3.3 million, down from $5.3 million in the same period last year. Non-retail revenue, including distributed brands and MMI, was $14.2 million in the first quarter of 2023, up from $12.2 million the previous year. Gross profit was $16.3 million in the first quarter of 2023, down from $22.1 million in the same period last year. The gross profit margin was 28.7%, up from 27.1% in the previous quarter. GrowGen’s full-year 2023 forecast kept net revenues in the $250 million to $270 million range. Furthermore, Adjusted EBITDA for the entire 2023 fiscal year converted a $4 million loss into a $1 million profit.
GRWG Stock Performance
On May 12th, the shares of GRWG finished at $4.04, up 11.60% in the last month of trading. GRWG stock is up 3.06% year to date, with a 52-week price range of $2.77-$8.63. According to CNN Business analysts, GRWG stock has a 12-month median price target of $4.53 per share. This would forecast a 12 percent increase over the last transaction price of $4.04.
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Glass House Brands Inc.
Glass House Brands Inc., a vertically integrated hemp and cannabis firm, serves one of the nation’s fastest-growing industries. The company focuses on the California market, where it develops distinctive, ecologically responsible brands to meet the needs of customers in a number of industries. Forbidden Flowers, Glass House Farms, and Mama Sue Wellness are some of the company’s well-known products. In September 2021, the corporation intends to invest in a 5.5 million square foot greenhouse in Southern California. The new company’s chief financial officer is Mark Vendetti. PLUS, a well-known California edibles brand, was purchased for $25.6 million in December.
In its full-year 2022 results, Glass House reported record fourth-quarter revenue of $32.2 million, up 14% sequentially. Furthermore, the gross profit increased from $8.7 million in the third quarter of 2022 to $(0.4) million in the fourth quarter of 2021 to $10.2 million in the fourth quarter of 2021. The gross margin grew from 2% in the fourth quarter of 2021 to 31% in the third quarter of 2022. In 2022, the company’s new California Farm expanded its retail reach, wholesale biomass production, and sales, resulting in a 31% increase in net revenue to $90.9 million, up from $200.9 million in 2021. The adjusted EBITDA for the quarter was $(2.6) million, compared to $(9.1) million in Q4 2021 and $(2.7) million in Q3 2022.
Net revenues for 2022 increased by 31% to $90.9 million from 2021, owing to increased wholesale biomass production, sales at the company’s new California Farm, and the development of its retail reach. As a result of the additional revenue from the four retail outlets we purchased in the third quarter, our retail revenues climbed by 23% from 2021 to $26.7 million. The company expected first-quarter revenue of $27 million to $29 million. The company plans to reveal its Q1 2023 financial results after the closing on May 15th.
GLASF Stock Performance
GLASF stock ended at $3.71 on May 12th, up 4.07% in the last five days of trading. Currently, the stock has been trading in a 52-week range of $1.78-$4.51. GLASF stock is up 94.24% year to date.
Watching Top Pot Stocks For Short Term Positions
In general, looking at financials and press releases can help you locate the top cannabis companies on the market. Many seasoned investors are aggressively trading short-term positions in the leading cannabis businesses to capitalize on current market volatility. Before establishing a position, use technical indicators and chart patterns to determine the optimum entry points and take-profit zones. By constantly hunting for suitable setups, you can boost your chances of profitable trade execution. Because of their volatility, the most well-known marijuana stocks in the United States may be among the top pot stocks to watch in 2023.
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