Investing In Marijuana Stocks For Q1 2023
Are you looking for top marijuana stock plays to start 2023? To many investors’ surprise, the stock market has rallied to begin 2023, and cannabis stocks are attempting to participate in the momentum. The marijuana penny stock market is one aspect of the cannabis industry that is moving. For the benefit of uncertain investors, any stock that trades for less than $5 is referred to as a penny stock. These marijuana stocks, known for their significant market volatility, can provide high-risk reward opportunities for short-term investors.
The marijuana ancillary stock market is one industry that has experienced significant losses in 2022. Cannabis ancillary companies provide services to the cannabis industry but don’t handle the actual plant. Numerous businesses typically support the cannabis industry. The cannabis industry can be supported by ancillary businesses that provide lighting and cannabis-growing equipment. As we head into Mid-January, let’s look at 3 top ancillary marijuana stocks gaining this month.
Top Ancillary Cannabis Stocks With Upside In January
- Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM)
- Agrify Corporation (NASDAQ: AGFY)
- Greenlane Holdings, Inc. (NASDAQ: GNLN)
Hydrofarm Holdings Group, Inc.
Hydrofarm Holdings Group, Inc. is well-known for delivering hydroponic and controlled environment agricultural equipment and supplies. The company typically provides a wide range of cannabis-growing supplies. The company produces various products, such as temperature control systems, high-intensity grow lights and growth promoters. The business said on November 1st that it had acquired New Growers Equipment, Inc., which possessed a number of cutting-edge items and a well-known brand. In order to offer cutting-edge reverse osmosis water filtering technology and solutions, the company partnered with AXEON Water Technology in January.
Hydrofarm reported net sales of $74.2 million in the third quarter of 2022 as opposed to $123.8 million in the same period the previous year. Gross profit also dropped further, from $30.0 million to $5.9 million. Gross profit was $7.8 million as opposed to $33.0 million after adjustments. In contrast to its net income of $17.3 million, or $0.37 per diluted share, the firm recorded a net loss of $(23.5) million, or $(0.52) per diluted share. Additionally, the company now projects net sales of between $330 million and $347 million for the entire 2022 fiscal year.
HYFM Stock Performance
HYFM Stock closed on January 13th at $1.69, up 34.13% in the past five days of trading. The stock has a 52-week price range of $1.18-$22.70 and is up 9.03% year to date. According to analysts at CNN Business HYFM stock has a 12-month average price target of $3.75 per share. In this case, this would increase 121.89% from its last trading level of $1.69.
[Read More] Top Canadian Marijuana Stocks For Your 2023 Watchlist Right Now
Agrify Corporation
Agrify Corporation, a US-based company, offers reliable machinery and software to the indoor farming sector. The business offers vertical farming systems, integrated grow racks, and LED grow lights. Agrify’s cutting-edge software and technology solutions enable businesses to operate at the highest dependability, effectiveness, and quality levels while spending the least amount of money feasible. The company’s services include consulting, engineering, and construction. Precision Extraction Solutions and Cascade Sciences, two well-known providers of tools and services for examining, processing, and extracting hemp and cannabis, were recently acquired by the business. The company acquired Lab Society in February, a pioneer in cannabis extraction, distillation, and solvent separation solutions, with a $10 million yearly revenue.
Agrify’s revenue dropped from $15.8 million in the same time of 2021 to $7.0 million in the third quarter of 2022. Revenue climbed by 51.4% to $52.4 million from $34.6 million over the same time last year. The third quarter’s gross loss was $(4.1) million, or (58.6%) of revenue, as opposed to the same quarter last year’s gross loss of $(380) thousand, or (2.4%)%. The most recent quarter’s gross profit (loss) was $1.7 million, or 3.2% of revenue, as opposed to the prior year-to-date quarter’s gross profit (loss) of $(393) thousand, or (1.1)% of revenue. For the forthcoming fiscal year 2022, Agrify anticipates adjusted sales between $65 million and $70 million.
AGFY Stock Performance
AGFY stock closed on January 16th at $0.66, up 88.57% in the past five days of trading. Currently, the stock has a range of $0.246-$86.35 and is up 98.20% year to date. According to analysts at CNN Business, AGFY stock has a median price target of $1.68 per share. In this case, this would represent an upside of 153.79% from its last trading price of $0.66.
[Read More] 3 Marijuana Stocks To Buy Today 2023?
Greenlane Holdings, Inc.
Greenlane Holdings, Inc. is a globally recognized cannabis accessory brand. The company’s major items in the US and other countries include premium vaporizers, kid-safe packaging, and cannabis accessories. Currently, more than 11,000 stores around the world sell Greenlane products. In 2021, Greenlane and KushCo Holdings, Inc. completed their merger. The business acquired DaVinci, a renowned creator, and producer of pricey portable vaporizers.
In the third quarter of 2022, same-store sales rose by 46% when compared to the same period the year prior and by 18% when compared sequentially, according to corporate statistics. Revenue increased by 98% to $95.4 million in the third quarter of 2022 from $48.1 million in the same quarter of 2021. The company is also very near to having the biggest revenue of any cannabis company reporting in Canadian dollars, with a current yearly revenue run rate of over $400 million. A big agreement was made between Greenlane and Universal Distribution regarding the distribution of Greenlane brands across Latin America. After completing the acquisition of KushCo Holdings, Greenlane might rank among the biggest support service suppliers worldwide.
GNLN Stock Performance
GNLN stock closed at $0.4620 on January 13th, up 32% in the past five trading days. Currently, the stock has a 52-week price range of $0.27-$18.60 and is up 60.70% year to date. According to analysts at Tip Ranks, GNLN stock has a 12-month average price target of $1.38 per share. In essence, this would represent an increase of 197.62% from its current trading price of $0.46.
Top Ancillary Pot Stocks For 2023 List Right Now
In December, these top cannabis stocks reached new lows; now that they are starting to rise again, investors might find value in them. Examine a company’s financial records and most recent press releases to see if an asset fits your trading strategy and portfolio. Better trading decisions can be aided by understanding technical indicators and chart patterns. These marijuana stocks with connections to cannabis growing maybe some of the more intriguing ones to follow in January 2023.
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