US Cannabis Stocks to Watch Right Now
As July 2023 comes to a close, the cannabis industry in the United States continues to develop, fueled by progressive legalization efforts and a fast-expanding market. Both experienced and inexperienced investors are keeping a close eye on the developing marijuana industry, hoping to benefit from its enormous potential. Navigating the environment of marijuana stocks can be both exciting and demanding, with a constant stream of legal changes, market developments, and industry improvements.
We analyze the top options to closely monitor this week in this post as we look into the exciting world of US marijuana stocks. We’ll also look at the fundamental causes shaping the sector and the short-term and long-term prospects that investors should consider as they plan their next steps. Short-term market volatility frequently gives possibilities for investors to profit from swings. Stock prices in the cannabis industry are no exception, with prices responding to various factors such as legislative changes, corporate earnings reports, and market sentiment. Identifying companies with solid fundamentals, creative products, and effective regulatory tactics can result in big short-term profits.
Beyond the short-term swings, the long-term potential in the US cannabis sector is in market consolidation and expansion. Furthermore, when the cannabis industry obtains legitimacy, and federal legalization becomes a reality, more institutional investors may enter the market, pouring extra capital and encouraging sector growth. Investors must undertake thorough due diligence, examine particular companies’ financial health and development potential, and closely monitor the developing regulatory situation. Understanding the industry’s future requires staying current on anticipated federal policy and state-level laws changes. Let’s look at 3 top US cannabis stocks to watch before August.
[Read More] US Marijuana Stocks in July 2023
3 Top US Marijuana Stocks to Consider
Cresco Labs Inc.
Cresco Laboratories is a vertically integrated cannabis company based in the United States. The company is setting the standard for developing branded cannabis products nationwide. The company runs 63 retail outlets and 20 industrial sites in 11 states. In March, the firm built locations in Palm Harbor and Lake Worth, bringing the total number of dispensaries in Florida to 28.
Cresco’s sales in the first quarter of 2023 were $194 million, a 3% decline from the previous quarter. In addition, the number of branded equalized units rose 32% year on year to 17.6 million. The company’s adjusted gross profit was $89 million, accounting for 46% of sales. In the first quarter, Cresco recorded a net loss of $28 million. Sunnyside now has 63 locations, including eight in Florida and Pennsylvania. Furthermore, Cresco’s online retail sales via the company’s e-commerce platform surpassed $1 billion.
CRLBF Stock Performance
CRLBF shares finished on July 21st at $1.63, down 12.83% in the last five days of trading. The stock is presently trading in a 52-week price range of $1.30-$4.45, showing a 9.44 percent decline year to date. According to analysts at CNN Business, CRLBF stock has a 12-month median price target of $2.57 per share. In this case, this represents an upside of 57.56% from its last trading price of $1.63.
Ayr Wellness Inc.
Ayr Wellness Inc. is a well-known cannabis company in Florida. Florida is home to 60 of the company’s 70 marijuana-related businesses. In order to expand in Illinois, the company purchased Herbal Remedies Dispensaries, LLC. Adult marijuana use can potentially increase the appeal of Ayr, Massachusetts-based businesses. The company has established its sixth linked dispensary in Pennsylvania. After getting regulatory approval from Arizona, Ayr planned to begin its 86,000-square-foot processing and growing facility in December. By acquiring Levia Cannabis Infused Seltzer in 2022, the firm made a significant investment in the beverage market.
AYR Q1 2023 Financial Highlights
According to AYR data, revenue climbed 18% year on year to $117.7 million in the first quarter of 2023, up 3% sequentially. Also, Adjusted EBITDA rose 64% year on year to $26.3 million and 9% sequentially (GAAP loss from operations rose to $21.7 million from $21.0 million in Q1/22). Since the beginning of 2023, the firm has opened seven new locations in Florida, bringing the state’s total number of dispensaries to 60. The company plans to open ten more locations in 2023, bringing the total number of outlets to 70 by the end of the year.
The Company anticipates revenue and Adjusted EBITDA will grow in line with Q1 sequential growth patterns in the second quarter. AYR further reiterates its forecast for positive operating cash flow in 2023. However, due to the timing of tax payments, operating cash flow patterns will not be linear. The company will release its second-quarter results on August 17th before the market opens.
AYRWF Stock Performance
AYRWF stock closed on July 21st at $0.953, up 7.08% in the last month of trading. The stock has a 52-week price range of $0.5660-$5.67 and is down 20.58% year to date. According to analysts at CNN Business, AYRWF stock has a 12-month average price target of $4.70 per share. In this case, this would represent an upside of 393.59% from the last price of $0.953.
[Read More] 3 Top Marijuana Stocks To Buy In 2023?
Verano Holdings Corp.
Verano Holdings Corp., established in the United States, is a multistate, vertically integrated cannabis firm. Under several brand names, the company distributes high-end cannabis products. Verano has 14 manufacturing and processing units, 129 dispensaries, and 13 states. Regardless, the company has 63 locations and is well-known throughout Florida. Two of the company’s retail brands, Zen LeafTM and MÜVTM, operate dispensaries serving medicinal and recreational customers. On June 1st, the company established its 68th location in Florida, in Miami Kendall.
Verano Q1 2023 Financial Highlights
Revenue for the first quarter of 2023 was $227 million, a 12% increase from $202 million in the first quarter of 2022 and a 1% increase from $226 million in the fourth quarter of 2022. Revenue increased in the first quarter of 2023 compared to the first quarter of 2022, mostly due to improvement in retail and wholesale adult-use sales in New Jersey and Connecticut, offset slightly by retail decreases in Pennsylvania.
In the first quarter of 2023, gross profit was $109 million or 48% of revenue, up from $99 million or 49% of revenue in the first quarter of 2022 and $103 million or 46% of revenue in the fourth quarter of 2022. The net loss in the first quarter of 2023 was $(9) million, compared to a small loss in the first quarter of 2022 and a loss of $(216) million in the fourth quarter of 2022. The business maintains its Free Cash Flow1 projection of $50-75 million while lowering its Capital Expenditure guidance to $35-50 million.
VRNOF Stock Performance
VRNOF shares closed at $2.80 on July 21st, down 3.45 in the past month of trading. The stock has a 52-week price range of $2.58-$7.19 and is down 10.26% year to date. According to analysts at Tip Ranks, VRNOF stock has a 12-month average price target of $8.71 per share. This would represent an increase of 211.07% from its last trading price of $2.80.
Investing In Top Pot Stocks In Q3 2023
To summarize, as the cannabis sector in the United States continues its rapid expansion and transformation, identifying top marijuana stocks to monitor becomes critical for investors looking to capitalize on the sector’s huge potential. While short-term opportunities arise from market volatility and emerging players, long-term gains lie in expansion and market consolidation. Investors should proceed carefully and perform thorough research, including technical analysis, to identify advantageous entry and exit points in an ever-changing market. In addition, knowing risk management is critical for capital protection and navigating the inherent uncertainties of the cannabis market.
Ultimately, investing in US marijuana stocks demands a delicate balance of staying informed, employing technical analysis, and practicing prudent risk management. As the cannabis industry grows, individuals who approach their investments with knowledge, discipline, and a long-term outlook will reap the benefits in this dynamic and fascinating market.
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