Best Ancillary Marijuana Stocks For October 2022?

The Cannabis Industry And October Market Volatility

Which marijuana stocks should you invest in for 2022? One industry that has seen significant declines since the start of the year is the ancillary marijuana stock market. Ancillary cannabis companies are companies that support the marijuana market but don’t really deal with the plant. Many companies routinely support the cannabis industry. Ancillary businesses can help the cannabis industry by providing equipment for producing cannabis or an online presence.

Last week, President Joe Biden announced that he will begin the process of pardoning people who had prior federal convictions for infractions involving small amounts of cannabis. Additionally, Biden said he is urging other governors to take comparable actions to throw out marijuana possession prosecutions at the state level.

A few cannabis-related stocks with Nasdaq listings had a decline in value over the first half of 2022. As a result, investors can currently purchase a number of these marijuana stocks at a significantly lower price. Potential cannabis investors may find some of these stocks to be a good spot to start their long-term investments or an opportunity to profit from recent market shifts. The top three ancillary marijuana stocks to watch in October are included in the list below.

[Read More] Top Marijuana Stocks With Significant Gains In October 2022

Top Ancillary Cannabis Stocks For Q4 2022

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

GrowGeneration Corp.

The US-based business GrowGeneration Corp. is well renowned for running and offering hydroponic and organic growing facilities. For cannabis cultivators, the company offers a variety of organic, lighting, and hydroponic alternatives. GrowGen presently owns and runs 62 organic gardening enterprises in the US. Growing Since the launch of the website,’s primary priority has been increasing its internet presence. The website has evolved into a one-stop e-commerce destination with over 10,000 products, spanning from nutrition to lighting technology. The company plans to open more than 100 shops around the US over the next five years. During the third quarter of 2021, the company constructed the largest hydroponic garden facility in Los Angeles County.GRWG

GrowGen’s financial results for the second quarter of 2022 were made public on August 4. Due to a decline in industry demand, net sales during this time period fell by 44 percent, to $71.1 million. For the full quarter, comparable store sales dropped by 56.9%. In contrast to a net gain of $6.7 million the year prior, the corporation reported a net loss of $136.4 million. This included an impairment charge of $127.8 million for goodwill and other intangibles. It is significant that the company decided to lower its estimated revenue range for 2022 from $340 to $400 million to $250 to $275 million. In May, GrowGeneration unveiled Drip Hydro, a range of liquid fertilizer blends designed for industrial planters. The business revealed its plans to open a new hydroponic garden facility in Richmond, Virginia, in September.

GRWG Stock Performance

On October 7th, the shares of GRWG finished at $4.01, up 14.57% in the last five trading days. GRWG stock is down 69.27% year to date, with a 52-week price range of $3.42-$25.96. According to CNN Business analysts, GRWG stock has a 12-month median price target of $5.13 per share. This would forecast a 27.97 percent increase over the last transaction price of $4.01.

[Read More] Top Marijuana Stocks To Learn About Over The Weekend

Hydrofarm Holdings Group, Inc.

The company Hydrofarm Holdings Group, Inc. is well recognized for selling equipment and supplies for hydroponic and controlled-environment farming. Generally speaking, the company offers a large selection of cannabis-growing products. The company manufactures a range of goods, including growing supplies, temperature control systems, and high-intensity grow lights. On November 1st, the business disclosed that it had acquired Innovative Growers Equipment, Inc., a number of cutting-edge products, and a creative brand. In order to provide cutting-edge reverse osmosis water filtration technology and solutions, the company partnered with AXEON Water Technology in January.hyfm

On August 9, the corporation reported its results for the second quarter of 2022; net revenues fell from $133.8 million to $97.5 million. Additionally, the gross profit dropped from $29.6 million to $7.3 million. Gross profit grew from $9.1 million to $30.2 million after revisions. In contrast to its net gain of $2.3 million, or $0.05 per diluted share, Hydrofarm had a net loss of $203.3 million, or a negative $4.53 per diluted share. As a result, an inventory reserve of $10.2 million and a non-cash charge for goodwill impairment of $189.6 million are included in the net loss for the second quarter of 2022. Additionally, by examining the shareholders of Hydrofarm, we can establish which group is the strongest. Institutions own the most shares in the company with a 57% holding.

HYFM Stock Performance

HYFM Stock closed on October 7th at $2.34 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 65.60% from its last trading level of $2.34.

[Read More] Joe Biden Will Soon Pardon Federal Offenders For Simple Marijuana Crimes

Agrify Corporation

An American company called Agrify Corporation offers dependable machinery and software to the market for indoor farming. The company now sells integrated grow racks, LED grow lights, and vertical farming systems. Businesses may function at the highest levels of dependability, effectiveness, and quality while spending the least amount of money feasible thanks to Agrify’s cutting-edge software and technology solutions. Consulting, engineering, and construction are among the services offered by the business. The business recently purchased Precision Extraction Solutions and Cascade Sciences, two well-known suppliers of equipment and services for inspecting, processing, and extracting hemp and cannabis. Lab Society, a pioneer in cannabis extraction, distillation, and solvent separation solutions with a $10 million yearly revenue, was purchased by the business in February.

When compared to the same quarter last year, Agrify’s revenue for the second quarter increased by 63.5% to $19.3 million. Additionally, revenue climbed from the year-to-date total of the prior year of $18.8 million to the year-to-date total of the current year of $45.4 million. There was an increase in gross profit 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. The company’s second-quarter net loss jumped from $5.6 million to $93.4 million, or $3.51 per diluted share, compared to the same period last year. The company is altering its revenue forecast for the forthcoming fiscal year 2022 as a result of the drop in the cannabis industry. Agrify’s updated revenue projection for Fiscal Year 2022 lies between $70 million and $75 million.

AGFY Stock Performance

AGFY stock closed on October 7th at $0.4424 down 31.94% in the past month of trading. The stock has a price range of $0.37-$23.55 and is down 95.19% 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 248.43% from its last trading level of $0.4424.

Best Ancillary Cannabis Stocks For Your Watchlist In October

These top cannabis stocks reached new lows in September; when they start to recover, investors might find value in the stocks. If you want to determine whether an asset is a good fit for your trading strategy and portfolio, you can look at a company’s financial statements and most recent press releases. Making better trading decisions can be aided by an understanding of technical indicators and chart patterns. These cannabis stocks that are tied to cannabis growing may be among the best ones to watch in October.

MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 |
Leave a Reply

Your email address will not be published.

You May Also Like

Marijuana Stocks May See A Revenue Boost Due To Cannabis Deliveries

The coronavirus has had many different effects on marijuana stocks. In only…