Top Cannabis Stocks To Invest In Right Now
In 2021 the best marijuana stocks to buy have seen significant market volatility. After reaching new highs in February most top cannabis stocks to invest in spend the rest of the year seeing declines in the market. Starting off November at some of the lowest price points seen in 2021, the introduction of the States Reform Act created some upward momentum in the sector. After the draft of the bill was released in November top pot stocks shot up double-digit percentages in some cases.
Some of that upside has now subsided but this shows the momentum marijuana stocks could have with federal marijuana legalization. As we move closer to federal cannabis reform the US cannabis industry could continue to see substantial growth for the next five years. One-way investors are taking advantage of the growth in the US marijuana market is by investing in ancillary cannabis companies.
Ancillary cannabis companies are those companies that support the cannabis industry without touching the actual plant. In the past few years, this area of the cannabis market has grown significantly. In addition, ancillary cannabis stocks have shown more stability in the market when compared to vertically integrated pot stocks. At current values, these marijuana stocks could see some upside with the end of US cannabis prohibition.
Top Pot Stocks In November 2021
Making a watchlist of these marijuana stocks can help you find the best entry points for your investment. In addition, studying how these pot stocks behave in the market and finding the companies with the strongest earnings can help you achieve the best returns from your investments. As the market continues to show some strength in November top marijuana stocks are bouncing off their lowest value for 2021.
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Although the cannabis sector has declined because of the delays this year with US federal policy leading cannabis companies have continued to deliver strong earnings in November. This has also been a catalyst for the cannabis sector this month. With significant events lining up for top marijuana stocks right now, let’s look at 2 of the best ancillary cannabis stocks to watch in November.
Best Marijuana Stocks To Watch In Q4 2021
- Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM)
- GrowGeneration Corp. (NASDAQ: GRWG)
Hydrofarm Holdings Group, Inc.
Hydrofarm Holdings Group, Inc. is a leading distributor and manufacturer of hydroponics equipment and supplies for controlled environment agriculture. Primarily, the company offers a variety of equipment that facilitates cannabis cultivation. To highlight, the company has products ranging from high-intensity grow lights, climate control solutions, and growing media. In addition to a broad portfolio of innovative and proprietary branded products. On November 1st the company announced it completed its acquisition of Innovative Growers Equipment, Inc.
On November 11th Hydrofarm delivered its third-quarter 2021 earnings with net sales of $123.8 million up 28.1% year over year. In detail, the company increased gross profit to $30 million or 24.2% of net sales. As a result, the company has an Adjusted EBITDA of $16.1 million up 116.7% year over year. The company reaffirmed its previous 2021 outlook net sales of $470-$490 million. Also, the company announced it completed the acquisition of Aurora Innovations and Greenstar Plant Products, Inc. Specifically, this acquisition continues Hydrofarms efforts of acquiring manufacturers of branded products in key CEA categories.
HYFM Stock Performance
HYFM Stock closed on November 18th at $41.24 down 4.25% for the trading day. The stock has a 52-week price range of $31.30-$95.48 and is down 21.57% year to date. According to analysts at CNN Business HYFM stock has a 12-month median price target of $49.00 per share. In this case, this would be an increase of 18.56% from its last trading level of $41.33.
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GrowGeneration Corp
GrowGeneration Corp. is a leading owner and operator of retail hydroponic and organic gardening stores across the US. Primarily, the company markets and distributes organics, lighting, and hydroponic equipment mainly used by cannabis cultivators. At the present time, GrowGen has 62 organic garden centers across 13 states recently opened its 11th and 12th stores in southern California. Additionally, the company has also been working on its online presence with the launch of GrowGeneration.com. Specifically, the site is a one-stop-e-commerce destination with over 10,000 products ranging from nutrients to lighting technology. In the next five years, the company is expecting to have over 100 locations operating in the US. In fact, during Q3 the company announced the opening of the largest hydroponic garden center in Los Angeles County, California.
On November 11th GrowGen delivered its third-quarter 2021 results with a record revenue of $116.0 million up 111% year over year. The company produced an Adjusted EBITDA of $10.8 million for the third quarter. In addition, the company saw same-store sales increase by 15.7% from the prior year. As a result, GrowGen delivered earnings of $0.07 per share in Q3. As it stands the company updated 2021 full-year guidance to $435-$440 million.
Words From The CEO
“The GrowGen team delivered a strong third quarter, with revenues up 111%, compared to the same period last year in a difficult macro environment. Same-store sales at 25 locations increased 15.7% from the prior year. At present, we have 62 retail locations in operation. We increased our inventory positions across all key product categories to get ahead of price increases, as well as expanded more private label purchases. Our private-label and proprietary products reached approximately 8.7% of our overall sales in the third quarter. Our online marketplace, including Agron, is on pace to reach $35 million of revenue for 2021. We opened two locations in the Los Angeles metro area, and for next year, we are looking to open 15 to 20 locations.”
Darren Lampert, GrowGen’s Co-Founder and CEO
GRWG Stock Performance
GRWG stock closed on November 17th at $21.09 down 4.79% for the trading day. Specifically, GRWG stock has a 52-week price range of $20.52-$67.75 and is down 47.56% year to date. According to analysts at Market Beat GRWG stock has a consensus price target of $38.50 per share. In essence, this would represent an upside of 82.6% from its last trading price of $21.09. As the prospects for growth in the cannabis market continue these could be some of the top marijuana stocks for your watchlist right now.
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