In 2023, How to Navigate the Marijuana Stock Market
Do you want to know what marijuana stocks to buy before July? As the cannabis sector evolves, it is critical to recognize the potential of marijuana stocks. Investors looking for high-growth possibilities have turned to the cannabis industry, drawn in by the potential profits. While the market is still new and volatile, savvy investments in leading US cannabis companies can provide a foothold in an industry with enormous long-term economic potential.
The cannabis industry in the United States has recently gotten much attention. Investors are increasingly interested in this emerging business’s exciting opportunities as the legal climate surrounding cannabis improves. Despite the growing popularity of marijuana, financial institutions have found it challenging to provide banking services to cannabis-related businesses. This issue led to the development of the SAFE Banking Act, ground-breaking legislation that addresses both the challenges that cannabis entrepreneurs face and the banking sector.
Despite the industry’s well-known high market volatility, short-term investors have the potential to benefit significantly. The cannabis market is predicted to triple in the next five years. Let’s look deeper at three top marijuana stocks in the United States that saw gains in the first quarter.
3 Top Marijuana Stocks to Watch in 2023
- Trulieve Cannabis Corp. (OTC: TCNNF)
- Ayr Wellness Inc. (OTC: AYRWF)
- Cansortium Inc. (OTC: CNTMF)
Trulieve Cannabis Corp.
Trulieve Cannabis Inc., which operates in eleven states, owns the majority of the Florida market. With 186 retail locations, the company dominates the cannabis sector in America. The processing and expansion space of the facility is 4 million square feet. The most recent Georgia manufacturing license has helped Trulieve’s position in the Southeast cannabis industry. In Massachusetts, the firm opened its first dispensary, laying the groundwork for future growth. To extend its manufacturing capacity in the southwest, the company purchased a 64,00 square foot growing facility near Phoenix in early February. In April, the company acquired Greenhouse Wellness West Virginia Dispensaries LLC, expanding its geographic footprint into West Virginia.
The corporation produced $289 million in revenue in the first quarter of 2023, with retail sales accounting for 95% of total income. Trulieve also had a 52% GAAP gross margin and a gross profit of $150 million. The company suffered a $64 million financial loss. The adjusted net loss of $21 million* excludes non-recurring charges, asset impairments, disposals, and discontinued activities. Trulieve now operates 186 retail locations in the United States and a growing processing capacity of over 4 million square feet.
Since mid-2022, Trulieve has taken proactive steps to minimize cash and margin-dilutive assets, streamline operations, and reallocate resources into attractive areas with long-term growth potential. To date, actions have included the shutdown of certain California retail assets, withdrawal from the Nevada wholesale market, and idle production capacity to match customer demand across many regions.
TCNNF Stock Performance
TCNNF stock closed on June 23rd at $3.95, down 11.43% in the last month of trading. Currently, the stock has a 52-week price range of $3.83-$16.11 and is down 47.82% year to date. According to analysts at Tip Ranks, TCNNF stock has a 12-month average price target of $13.60 per share. In this case, this represents an upside of 244.30% from its last trading price of $3.95.
[Read More] 4 Marijuana Stocks For Better Trading This Month
Ayr Wellness Inc.
Ayr Wellness Inc. is a well-known Florida cannabis company. Sixty of the company’s 70 marijuana-related businesses are situated in Florida. In order to expand in Illinois, the company acquired Herbal Remedies Dispensaries, LLC. Adult marijuana use has the potential to expand its appeal in Ayr, Massachusetts-based businesses. In Pennsylvania, the company has opened its sixth linked dispensary. After getting regulatory approval from Arizona, Ayr planned to begin its 86,000-square-foot processing and growing operation in December. By acquiring Levia Cannabis Infused Seltzer in 2022, the company made a big investment in the beverage business.
According to AYR reports, revenue climbed 18% year on year to $117.7 million in the first quarter of 2023, up 3% sequentially. Furthermore, Adjusted EBITDA climbed 64% year on year to $26.3 million and 9% sequentially (GAAP loss from operations was $21.7 million, up 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 additional stores in 2023, bringing the total number of locations to 70 by the end of the year.
The Company estimates that revenue and Adjusted EBITDA1 will expand in line with Q1 sequential growth patterns in the second quarter. AYR further reiterates its expectation of positive operating cash flow in 2023. However, operating cash flow trends will not be linear due to the timing of tax payments.
AYRWF Stock Performance
AYRWF stock closed on June 23rd at $0.8540, down 31.13% in the last month of trading. Currently, the stock has a 52-week price range of $0.5660-$5.88 and is down 28.83% year to date. According to analysts at CNN Business, AYRWF stock has a 12-month average price target of $7.19 per share. In this case, this would represent an upside of 741.92% from the last price of $0.8540.
[Read More] Investing In Top Marijuana Stocks 2023
Cansortium Inc.
Cansortium Inc., a cannabis firm established in Florida, is committed to manufacturing high-quality cannabis. The corporation currently has offices in Texas, Michigan, and Pennsylvania. As a result of a $90 million loan and equity arrangement inked the previous year, Cansortium has expanded into Florida and Pennsylvania. Fruitland Park, Florida, is where the company claims to have a dispensary. Cansortium is one of Florida’s largest dispensary networks, with 30 outlets. Fluent’s Fluent brand provides a comprehensive range of high-end consumables, including full-spectrum extracts, cartridges, and lotions.
Cansortium reported a 12% rise in revenue to $22.1 million in the first quarter of 2023, up from $19.7 million in the first quarter of 2022. Furthermore, revenue in Florida increased 9.7% to $18.2 million from $16.6 million. Importantly, adjusted gross profit1 increased 22% year on year to $14.1 million, or 63.9% of revenue, up from $11.5 million, or 58.6% of revenue in 2017. Year on year, adjusted EBITDA grew 56% to $9.7 million from $6.2 million. Cansortium now has 31 sites in Florida and expects to establish 3-5 new locations by the end of 2023. Three of these are currently under contract and under construction.
CNTMF Stock Performance
On June 23rd, CNTMF stock finished at $0.105, up 36.20% in the past month of trading. The stock is now trading in a 52-week price range of $0.065-$0.2550 and is down 6.08 percent year to date.
[Read More] The Growth And Future Potential Of The Cannabis Industry
Investing in Marijuana Stocks in 2023 and the Changing Landscape
Several events in the next months could potentially increase the value of these marijuana stocks in 2023. Examining their financial accounts and press releases may assist you in locating the best cannabis companies. To capitalize on recent market volatility, several skilled traders are actively putting short-term transactions in the biggest cannabis companies. Use technical indicators and chart patterns to find the best entry and exit criteria before starting a trade. By actively seeking out favorable market conditions, you can boost your chances of completing lucrative deals. These are some of the best marijuana stocks to watch this quarter in the United States.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
