Marijuana Stocks Are Down In 2022 Is It Time To Buy?
Are you looking for top marijuana stocks to buy before June? Last week the market began to rally after seven weeks of declines and the S&P 500 touching bear market territory. Although many analysts see this as a bear market rally many active traders are looking for ways to capitalize on the recent move higher. One way some investors are taking advantage of the recent surge in the market is by trading marijuana penny stocks. Specifically, penny stocks are defined as any stocks that trade under the $5 price point. In general, these stocks are known for having much more volatility and are considered a high-risk reward investment.
In most cases, active traders use short-term trading methods when trading cannabis penny stocks. This allows them to take advantage of daily and weekly price fluctuations in the best penny pot stocks. As we start a short week of trading the cannabis sector could have some potential catalysts brewing in the coming months. Finding top marijuana stocks to buy at these lower trading levels could be a way to achieve profitability once the sector shows momentum. In last week’s trading, some top marijuana penny stocks began showing potential upside. Let’s take a closer look at some of the top cannabis penny stocks to watch before June 2022.
Best Marijuana Penny Stocks For June 2022
- Cresco Labs Inc. (OTC: CRLBF)
- Glass House Brands Inc. (OTC: GLASF)
- Jushi Holdings Inc. (OTC: JUSHF)
- Ascend Wellness Holdings, Inc. (OTC: AAWH)
Cresco Labs Inc.
Cresco Labs is a cannabis company based in the United States with a vertically integrated business structure. The company is presently the top manufacturer of branded cannabis products in the United States. Cresco is the most popular marijuana brand in Illinois and Pennsylvania, according to a BDSA survey. Cresco operates in 11 states and has 50 retail outlets, 20 production facilities, and 47 retail licenses. Sunnyside has launched its fourth dispensary in Pennsylvania as part of its expansion plan. The Good News product line will be expanded to include new consumables and vaping options, according to the business. To boost profitability and remove third-party distribution in California, the company will transition to owned brand distribution.
In the first quarter, the company generated $214 million in sales, up 20% year over year. Furthermore, gross profit, excluding fair value mark-up for bought goods, was $113 million, or 53% of revenue, up 29% year over year. For the first quarter, adjusted EBITDA was $51 million, or 24 percent of revenue, increasing 45 percent year over year. Retail revenue surged by 44% year over year to $119 million, or $2.5 million per average shop open in the quarter, with same-store sales up 9%.
Cresco ended the quarter with $179 million in cash on hand and added four new retail sites, three in Florida and one in Pennsylvania, for a total of 50. In addition, in the first quarter, the company launched its branded product line in Florida, which included High Supply®, Good News®, RemediTM, and Sunnyside* Chews. Cresco recently announced the acquisition of Columbia Care Inc. (OTC: CCHWF), giving it a market capitalization of $2 billion, making it the new cannabis sector leader.
CRLBF Stock Performance
CRLBF shares finished on May 27th at $3.74, down 8.56% for the last five trading days. The stock is presently trading in a 52-week price range of $3.61-$12.88, showing a 43.93 percent decline year to date. According to analysts at Tip Ranks CRLBF stock has a 12-month median price target of $10.05 per share. In this case, this represents an upside of 168.72% from its last trading price of $3.74.
Glass House Brands Inc.
Glass House Brands Inc. is a vertically integrated cannabis and hemp company operating in one of the country’s most rapidly developing marketplaces. The company focuses on the California market, where it develops cutting-edge, long-lasting brands to fulfill the demands of consumers across a wide range of industries. Glass House Farms, Forbidden Flowers, and Mama Sue Wellness are just a few of the company’s successful ventures. In September, the company purchased a 5.5 million square foot greenhouse in Southern California. The organization’s Chief Financial Officer has been named Mark Vendetti. In December, PLUS, a well-known California edibles brand, was acquired for $25.6 million.
Glass House reported net sales of $14.0 million in the first quarter of 2022, down 8% from $15.2 million in the first quarter of 2021 and down 24% sequentially from $18.4 million in the fourth quarter of 2021. Furthermore, gross profit was $2.3 million in Q1 2021, compared to $5.4 million in the previous quarter. In Q1 2021, the gross margin was 17%, compared to 36% in Q1 2021. In addition, Adjusted EBITDA was $(6.4) million in Q1 2021, compared to $0.6 million in the previous quarter. The company had a cash balance of $24.8 million at the end of the first quarter, compared to $54.1 million at the end of 2021. GLASF stock ended at $3.57 on May 27th, down 6.87% year to date. Currently, the stock has been trading in a 52-week range of $3.00-$13.99.
[Read More] Top Canadian Marijuana Stocks To Watch This June
Jushi Holdings Inc.
Jushi Holdings Inc. is a cannabis and hemp corporation with a rising presence in the United States’ medical and recreational marijuana markets. The company’s main objective is to build a portfolio of branded cannabis and hemp-derived goods for the US market. Jushi operates 32 dispensaries in the United States under the BEYOND/HELLO brand. Jushi also has 31 retail licenses in the US, and its national cannabis dispensary brand, Beyond/Hello, is expanding both online and in-store. In April, NuLeaf Inc. was purchased, allowing the company to expand its vertically integrated operations into Nevada.
Jushi announced its first-quarter 2022 revenue increased 48.5% to $61.9 million as compared to the first quarter of 2021. In addition, the company’s adjusted gross profit increased by 33.1 percent year over year to $25.5 million. In the first quarter, the corporation had a net loss of $14.3 million. The company also has an Adjusted EBITDA of $1.1 million, or 1.7 percent of revenue, and cash and cash equivalents of $76.2 million at the end of the quarter. The company launched a series of cannabis brands and products in Massachusetts in Q1 2022, starting with flower brands The Bank and Sèchè.
JUSHF Stock Performance
JUSHF stock closed at $1.77 on May 27th down 10.58% for the last five trading days. Currently, the stock has a 52-week price range of $1.72-$6.62 and is down 45.54% year to date. According to analysts at Tip Ranks JUSHF stock has a 12-month average price target of $5.10 per share. In this case, this represents an upside of 188.08% from its last trading price of $1.77.
Ascend Wellness Holdings, Inc.
AWH is a vertically integrated cannabis corporation with operations in Illinois, Michigan, Ohio, Massachusetts, and New Jersey. The core business of AWH is to own and operate growing facilities that produce award-winning strains and a carefully chosen product line. In general, the company manufactures and sells Ozone-branded items. The company’s cannabis product categories include flowers, pre-rolls, concentrates, vapes, edibles, and other cannabis-related items. AWH sells to licensed cannabis merchants and has 17 retail locations. On May 11th, Ascend Wellness agreed to increase the acquisition price of MedMen NY Inc., a subsidiary of MedMen Enterprises Inc. (OTC: MMNFF), from $73 million to $88 million, depending on the initiation of adult-use sales at a MedMen NY facility, by $4 million.
The company’s overall gross sales in the first quarter of 2022 were $101.2 million, down 0.8 percent quarter over quarter but up 33.4 percent year over year. In addition, net revenue declined 3.8 percent quarter over quarter but rose 28.7 percent year over year to $85.1 million, excluding intercompany wholesale goods sales. In the first quarter of 2022, the company lost $27.8 million, compared to $16.5 million in the previous quarter. Ascend’s Adjusted EBITDA was $16.4 million, representing a margin of 19.2 percent. The company has $143.8 million in cash and cash equivalents and $89.9 million in net debt as of March 31, 2022. Early this year, the company began distributing in Massachusetts and Michigan after forming an exclusive partnership with Lowell Smokes. The company announced on April 12th that it will be one of seven New Jersey operators serving adult-use cannabis beginning next week.
AAWH Stock Performance
AAWH stock closed on May 27th at $3.00 down 2.28% in the past five trading days. Currently, the stock has a price range of $2.81-$15.81 down 54.30% year to date. According to analysts at CNN Business AAWH stock has a 12-month median price forecast of $8.50 per share. In this case, this would represent an upside of 183.33% from its last trading price of $3.00.
Important Factors For Trading Marijuana Penny Stocks In 2022
Marijuana penny stocks are thought to have a greater risk-to-reward ratio. It’s critical to conduct your own due research on a company before investing. Examining a company’s earnings and press releases might help you gain a better understanding of the sector’s top performers. Learning to recognize chart patterns and employing technical indicators can also help you boost your chances of making profitable trades. As investors prepare for a market correction, these might be the best marijuana penny stocks to purchase in 2022.
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