Top Cannabis Stocks On Watch In March
What marijuana stocks should you buy in March? In 2022, the stock market for ancillary cannabis stocks experienced significant losses. Cannabis ancillary companies assist the cannabis industry but do not deal with the plant itself. Many corporations typically provide help to the cannabis industry. Equipment suppliers for lighting and growing also support the cannabis market.
The federal cannabis reform and SAFE Banking laws are now being delayed by Congress, which has had a very detrimental effect on the cannabis sector. Day and swing traders frequently make the most money when trading in a market like this. In addition to their substantial long-term investments in the cannabis industry, some long-term investors also adopt short-term trading strategies.
The stock market has been increasing from 2023 until March. Several of these marijuana stocks are currently available to investors at significant discounts. Many of these stocks could prove to be the finest long-term entry opportunities for potential cannabis investors or offer an opportunity to profit from recent market fluctuations. The best three ancillary marijuana stocks to watch in 2023 are listed below.
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Best Ancillary Cannabis Stocks This Week
- GrowGeneration Corp. (NASDAQ: GRWG)
- Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM)
- Agrify Corporation (NASDAQ: AGFY)
GrowGeneration Corp.
GrowGeneration Inc. is well-known in the US for running and providing hydroponic and organic growing facilities. The company provides cannabis producers with a range of hydroponic, organic, and lighting options. Currently, GrowGen owns and manages 60 organic gardening businesses in the US. Growing and expanding GrowGeneration.com’s online presence has always been a top priority. 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 nationwide by opening more than 100 stores over the next five years. The company will build the most extensive hydroponic garden facility in Los Angeles County during the third quarter of 2021.
Earnings for GrowGeneration in the third quarter of 2022 were higher than expected. Revenue for the third quarter was $70.9 million, a 39% decrease from the same time last year. Grow Gen experienced a 279% decline in third-quarter profit, going from $4.3 million in 2021 to a net loss of $7.2 million. Sales were 24% higher than analysts had predicted. Moreover, Earnings increased by 7.7% more than anticipated by analysts. Revenue in 2022 is expected to be between $250 million and $275 million and between $270 million and $280 million, according to the most recent prediction. GrowGen opened its 60th facility in New Jersey in November. On January 9, the company named Aaron Hook, vice president of sales. The company has scheduled its fourth quarter and full year 2022 earnings release for March 15th after the market closes.
GRWG Stock Performance
On March 7th, the shares of GRWG finished at $4.12, down 17.10% in the last month of trading. GRWG stock is up 5.10% year to date, with a 52-week price range of $2.92-$10.79. According to CNN Business analysts, GRWG stock has a 12-month median price target of $5.13 per share. This would forecast a 24.09 percent increase over the last transaction price of $4.12.
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Hydrofarm Holdings Group, Inc.
A well-known manufacturer of agricultural supplies and machinery for hydroponic and controlled environments is Hydrofarm Holdings Group, Inc. The company regularly offers a large selection of marijuana-growing products. The company manufactures a wide range of goods, including growth promoters, high-intensity grow lights, and temperature control systems. On November 1st, the company announced that it had purchased New Growers Equipment, Inc., a company with a number of cutting-edge products and a well-known brand. The business teamed up with AXEON Water Technologies in January to provide cutting-edge reverse osmosis water filtration technology and solutions.
In the third quarter of 2022, Hydrofarm reported net sales of $74.2 million instead of $123.8 million in the same quarter of 2021. Nevertheless, the gross profit fell even more, from $30.0 million to $5.9 million. After adjustments, the gross profit was $7.8 million compared to $33.0 million. The company reported a net loss of $(23.5) million, or $(0.52) per diluted share, as opposed to its net income of $17.3 million, or $0.37 per diluted share. According to the company’s projections, net revenues for the 2022 fiscal year would be between $330 and $347 million. The company will release its fourth quarter and full year 2022 results on March 9th after the close.
HYFM Stock Performance
HYFM Stock closed on March 7th at $1.58, down 23.30% in the past month of trading. The stock has a 52-week price range of $1.18-$17.45 and is up 1.94% year to date. According to analysts at CNN Business, HYFM stock has a 12-month average price target of $2.58 per share. In this case, this would increase 62.46% from its last trading level of $1.58.
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Agrify Corporation
Agrify Corporation, a US-based business, provides dependable equipment and software to the indoor farming industry. The company now sells integrated grow racks, LED grow lights, and vertical farming systems. Businesses may function at the highest dependability, effectiveness, and quality levels while only incurring minimal expenditures thanks to Agrify’s cutting-edge software and technology solutions. Consulting, engineering, and construction are among the services offered by the business. The company 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.
From $15.8 million at the same time in 2021 to $7.0 million in the third quarter of 2022, Agrify’s revenue decreased. From $34.6 million during the same period last year to $52.4 million this year, revenue increased by 51.4%. Compared to the same period last year, when it was $(380) thousand, or (2.4%), the third quarter’s gross loss was $(4.1) million, or (58.6%) of revenue. In contrast to the prior year-to-date quarter’s gross profit (loss), which was $393 thousand, or (1.1%)% of revenue, the most recent quarter’s gross profit (loss) was $1.7 million, or 3.2% of revenue. Agrify projects adjusted sales of between $65 million and $70 million for the upcoming fiscal year 2022.
AGFY Stock Performance
AGFY stock closed on March 7th at $0.3720, down 22.34% in the past month of trading. Currently, the stock has a range of $0.246-$69.30 and is up 11.71% 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 346.67% from its last trading price of $0.3720.
Ancillary Pot Stocks For 2023 Cannabis Investors
You might be able to identify the top cannabis companies on the market by looking at their financial statements and press releases. To take advantage of the current market volatility, some seasoned traders are actively placing short-term wagers on well-known cannabis companies. Use technical indicators and chart patterns to assist you in finding the best market chances before opening a position. If you search for opportunities to make profits in your trading, your chances of success will increase. These might be some of the top marijuana stocks to watch this month due to the volatility of the big marijuana companies.
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