Best Cannabis Stocks To Watch Next Year

Which marijuana stocks should you invest in for 2023? One industry that has seen significant declines this year is the ancillary marijuana stock market. Cannabis ancillary companies are businesses that provide services to the marijuana industry but do not handle the plant itself. The cannabis industry often has the support of several corporations. Ancillary companies can help the cannabis industry by providing cannabis growing materials and lighting equipment.

The federal cannabis reform and SAFE Banking bills are now being delayed in Congress, which has caused significant losses for the cannabis industry. The Senate has actually continued to ignore cannabis reform for the second year. Day traders and swing traders typically make the most money when trading in a market like this. In addition to their significant long-term investments in the cannabis industry, some long-term investors opt to adopt short-term trading strategies. Therefore, they stand to benefit from everyday stock price changes.

A few cannabis-related Nasdaq-listed stocks had a decline in December. Some of these marijuana stocks are currently available to investors at steep discounts. Potential cannabis investors may find some of these stocks to be excellent starting points for their long-term investments or an opportunity to profit from current market shifts. Below is a list of the top 2 ancillary marijuana stocks to watch in December.

[Read More] 2 Marijuana Stocks To Watch In Todays Stock Market

Best Ancillary Marijuana Stocks For 2023 Cannabis Investors

  1. GrowGeneration Corp. (NASDAQ: GRWG)
  2. The Scotts Miracle-Gro Company (NYSE: SMG)

GrowGeneration Corp.

GrowGeneration Corp. is well known for running and providing hydroponic and organic growing facilities in the US. For cannabis cultivators, the company provides a range of hydroponic, organic, and lighting options. GrowGen presently owns and runs 60 organic gardening enterprises in the US. Extending and expanding has always placed a high priority on its online presence. With over 10,000 products ranging from nutrition to lighting technology, the website has developed into a one-stop e-commerce destination. The business intends to grow across the country by opening more than 100 stores over the next five years. The business will build the biggest hydroponic garden facility in Los Angeles County during the third quarter of 2021.GRWG

In the third quarter of 2022, GrowGeneration’s earnings exceeded expectations. The third quarter’s revenue was $70.9 million, a 39% drop from the previous year. Due to this, Grow Gen’s third-quarter 2021 profit, which was $4.3 million, fell by 279% to a net loss of $7.2 million. Revenue exceeded analyst expectations by 24%. In addition, EPS rose by 7.7% more than forecasted by analysts. The updated range for the 2022 revenue estimate has increased from $250 million to $275 million to $270 million to $280 million. In November, GrowGen Opened its 60th location in New Jersey.

GRWG Stock Performance

On December 21st, the shares of GRWG finished at $4.38, down 27.96% in the last month’s trading. GRWG stock is down 66.44% year to date, with a 52-week price range of $2.92-$14.10. According to CNN Business analysts, GRWG stock has a 12-month median price target of $5.13 per share. This would forecast a 17.28 percent increase over the last transaction price of $4.38.

[Read More] Best US Cannabis And Marijuana Stocks For 2023

The Scotts Miracle-Gro Company

Scotts Miracle-Gro, the world’s largest brand-name consumer lawn and garden product maker, has entered the cannabis market. Hawthorne Gardening, a fully owned subsidiary of the business, sells hydroponic equipment, lights, and fertilizers for the growth of cannabis. In January, Scotts added True Liberty Bags and Luxx Lighting to the Hawthorne collection. The purchase will strengthen Hawthorne’s already impressive lighting lineup. Despite a drop in income, Hawthorne has not modified its full-year outlook.smg stock

Sales for the fourth quarter of 2022 at Scott’s decreased by 33% to $493.6 million. US consumer sales decreased by 18% to $302.1 million from $369.4 million. From $329.1 million in sales over the same period last year to $168.5 million this year, the Hawthorne section’s sales decreased by 49%. On December 9th, Scotts will pay its stockholders a $0.66 dividend per share. The dividend yield will be 4.9% based on this payout, which is still better than the sector average.

SMG Stock Performance

SMG stock closed at $48.35 on December 21st, down 16.55% in the last month. Currently, the stock has a 52-week price range of $39.06-$167.09 and is down 69.97% year to date. According to analysts at Tip Ranks, SMG stock has a 12-month price target of $50 per share. This forecast represents an increase of 3.33% from its last trading price of $48.35.

[Read More] The Best 2 Marijuana Stocks You Can Find Right Now?

Best Ancillary Pot Stocks For 2023 Watchlist

These top cannabis stocks experienced a significant decrease in December; investors may find value in the stocks when they recover. Review a company’s financial records and most recent news releases to determine whether an asset is a good fit for your trading strategy and portfolio. Understanding technical indicators and chart patterns can help you make better trading decisions. These ancillary cannabis stocks with ties to cannabis cultivation might be among the top things to watch in 2023.



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