Are Cannabis Stocks A Buy In 2022?
Are you looking for top marijuana stocks to invest in for 2022? As the market volatility continues this year one area that could have significant momentum as the year progresses is marijuana stocks. Since February 2021 the cannabis sector has experienced a downtrend that has left most top cannabis stocks trading near new lows in the first quarter of 2022. For active traders, market volatility makes it easier to take advantage of price swings in the market.
One area that is known for having substantial market volatility is top marijuana penny stocks. Penny stocks are any stocks that trade under the $5 stock price. Considered a high-risk reward area of the market marijuana penny stocks could be an area that will have some upside in the coming months.
In March many leading cannabis companies are scheduled to release earnings that could show strong revenue growth in 2021. In addition, new attempts in Congress to pass federal cannabis reform in 2022 are already underway. Although many cannabis investors believe we may not establish reform this year the possibility of it happening could cause some upside in the market.
Trading Pot Stocks For Short Term Gains
In general, some active traders use day trading and swing trading techniques to trade pot stocks. This allows them to take advantage of the price swings in a volatile market. Learning how to identify favorable chart patterns and positioning yourself in the best opportunity to see gains can help make you a successful trader.
[Read More] Top Marijuana Stocks To Watch Before Earnings In March
As the market continues to be extremely volatile going into March top marijuana penny stocks could be on the watchlist for short-term traders. Because the cannabis sector has earnings coming up any good financials could begin to cause an uptrend in pot stocks. As we close out February let’s look at top marijuana penny stocks for your watchlist in March.
Best Cannabis Penny Stocks For Your List For Next Month
- Ascend Wellness Holdings, Inc. (OTC: AAWH)
- Columbia Care Inc. (OTC: CCHWF)
- Planet 13 Holdings Inc. (OTC: PLNHF)
Ascend Wellness Holdings, Inc.
AWH is a vertically integrated company with operations in Illinois, Michigan, Ohio, Massachusetts, and New Jersey. The core business of AWH is owning and running growing facilities that produce award-winning strains and a carefully selected line of products. In general, the company manufactures and sells Ozone-branded goods. 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. In October, Ascend will extend its vertically integrated footprint in Ohio. In November, the business announced the launch of a dispensary in Newton, Massachusetts. AWH announced the completion of its acquisition of Ohio Cannabis Clinic in December, giving them a second dispensary in the state.
In the third quarter of 2021, AWH generated net sales of $94.4 million, up 13.2 percent over the previous quarter. For the quarter, the company’s Adjusted EBITDA was $23.5 million, up 15.9% over the prior quarter. The $105 million in total revenue was up 131.4 percent over the prior year. At the conclusion of the third quarter, the company had $204.5 million in cash and cash equivalents. AWH has also introduced Lowell Smokes pre-rolls from Lowell Farms Inc. (OTC: LOWLF) to the Massachusetts market. AWH said on January 6th that MedMen Enterprises Inc. (OTC: MMNFF) had breached its investment agreement and was continuing to fight the jurisdiction of New York authorities. On March 8th AWH will release its Q4 and full-year 2021 earnings after the market close.
AAWH Stock Performance
AAWH stock closed on February 25th at $4.48 up 7.95% for the trading day. Currently, the stock has a price range of $4.00-$9.21 down 57.33% in the last six months. According to analysts at Tip Ranks AAWH stock has a 12-month average price forecast of $12.75 per share. In this case, this would represent an upside of 173.44% from its last trading price of $4.48.
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Columbia Care Inc.
Columbia Care Inc. is set to expand dramatically in New York. The company just purchased a 34-acre growing facility on Long Island, giving it one of the East Coast’s largest cannabis footprints. Columbia Care presently has 130 sites, including 99 dispensaries and 31 growing and processing facilities, spread throughout 18 US cities. The company opened its first Missouri location, a Cannabis Dispensary, in October. In Virginia, the company announced the establishment of its third gLeaf dispensary. Heavyweight champion Mike Tyson’s highly anticipated Tyson 2.0 Cannabis brand will also be arriving to Colorado, according to Columbia Care. The company announced a rebranding in the Florida market and at its retail sites on December 8th. In February the company opened its first location in the West Virginia market.
In the third quarter of 2021, Columbia Care announced record quarterly revenues of $132 million, up 144 percent year over year. The company recorded a $64.5 million quarterly Adjusted Gross Profit, up 205 percent from the prior quarter. Furthermore, the company reached a new high with a 49 percent Adjusted gross margin and $31 million Adjusted EBITDA, up 634 percent year over year. Revenue estimates for 2021 have been increased to $470-$485 million, with adjusted EBITDA expected to be $85-$95 million. In September, the company received state approval to rename all 14 of its retail locations in Florida. After the market closes on March 15th, the business will release its Q4 and full-year 2022 financials.
CCHWF Stock Performance
CCHWF stock closed at $3.05 on February 27th down 2.08% for the past five trading days. Currently, the stock has a 52-week price range of $2.51-$7.29 and is down 25.12% in the past six months. According to analysts at Tip ranks CCHWF stock has a 12-month average price target of $10.03 per share. In this case, this would represent an upside of 228.31% from its last trading price of $3.05.
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Planet 13 Holdings Inc.
On the Las Vegas strip, Planet 13 is known for its 112,000-square-foot Superstore dispensary. In addition, the Planet 13 superstore in Orange County, is now California’s largest dispensary complex. The company is established in Nevada, and its cultivation, production, and dispensary activities on the Las Vegas strip have won honors. Planet 13’s two superstore dispensaries are now considered to be the world’s largest. The Medezin shop has also opened, which is a smaller version of the company’s main store that combines the larger retail facility with a small dispensary.
In November, Planet 13 reported $33 million in revenue for the third quarter of 2021, up 45 percent from the previous year. In addition, in the third quarter of 2021, the company generated $3.5 million in Adjusted EBITDA. As a result, gross profit was $17.6 million, or 53.5 percent of revenue, before adjustments. In the third quarter of 2021, the company lost $10.2 million, compared to a profit of $0.2 million the previous quarter. According to the company, Tinley’s products will be a range of cannabis-infused drinks. Planet 13 has also fulfilled all the requirements for obtaining a Florida Cannabis License.
PLNHF Stock Performance
PLNHF stock closed on February 25th at $2.75 down 2.48% in the past five trading days. Currently, the stock has a 52- week price range of $2.35-$7.70 and is down 45.33% in the last six months. According to analysts at Market Beat PLNHF stock has a consensus price target of $7.00 per share. In this case, this forecast represents an upside of 154.5% from its last trading price of $2.75.