Ancillary Cannabis Stocks In Q3 2022
Are you trying to find the best marijuana stocks to buy in 2022? The cannabis industry as a whole has fallen significantly in 2022, reaching new lows in recent trading weeks. Ancillary marijuana stocks are one sector that has experienced big drops to start the year. For those who are unfamiliar, ancillary cannabis companies are businesses that assist the cannabis industry without working with the plant itself. Generally speaking, a wide variety of businesses support the cannabis sector.
Over the first half of 2022, the value of several ancillary cannabis stocks that trade on the Nasdaq has significantly decreased. As a result, several of these marijuana stocks are currently trading at significantly better prices for investors. Some of these stocks may offer a place to start for long-term cannabis investing or a chance to make money from huge short-term losses. The stock market will soon reach its bottom, according to many analysts right now. Here are the top 2 marijuana stocks for July to add to your watchlist.
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Best Ancillary Marijuana Stocks To Watch Mid July
- GrowGeneration Corp. (NASDAQ: GRWG)
- Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM)
GrowGeneration Corporation
GrowGeneration Corp. is a well-known supplier and manager of hydroponic and organic growing facilities in the US. The business offers a variety of cannabis producers’ supplies, such as organics, lighting, and hydroponic equipment. Currently, GrowGen owns and operates 64 organic garden stores around the US. Since GrowGeneration.com launched, the company has focused on expanding its online presence. With over 10,000 products ranging from nutrition to lighting technology, the website has developed into a one-stop e-commerce destination. The company plans to launch more than 100 locations around the US over the next five years. The company built the biggest hydroponic garden facility in Los Angeles County during the third quarter of 2021.
GrowGen’s net sales for the first quarter of 2022 declined to $81.8 million as a result of weaker industry demand, according to the company’s May reports. Additionally, third-quarter comparable store sales decreased 35.5 percent. A net loss of $5.2 million, or a loss of $0.09 per share, was the result for the quarter. Overall adjusted EBITDA loss for the company was $0.7 million. GrowGeneration introduced Drip Hydro in May, a variety of liquid fertilizer mixes designed for commercial planters. The previous range for revenue projections for 2022 was $415 to $445 million, but they have now been reduced to $340 to $400 million. In June the company opened a new store in Mississippi and signed leases that will expand GrowGen into Virginia and Missouri.
GRWG Stock Performance
On July 11th, the shares of GRWG finished at $4.11, down 6.10% in the past month. GRWG stock is down 68.51% year to date, with a 52-week price range of $3.42-$48.07. According to CNN Business analysts, GRWG stock has a 12-month median price target of $6.25 per share. This would forecast a 50.07 percent increase over the last transaction price of $4.11.
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Hydrofarm Holdings Group, Inc.
A well-known retailer of hydroponics and controlled-environment agricultural supplies and tools is Hydrofarm Holdings Group, Inc. In general, the company sells a wide variety of cannabis-growing equipment. The business. produces a variety of products, including temperature control systems, high-intensity grow lights, and growing media. The company declared on November 1st that it had successfully purchased Innovative Growers Equipment, Inc. together with a wide range of innovative goods and a smart brand. The business teamed up with AXEON Water Technology in January to offer cutting-edge reverse osmosis water filtration technology and solutions.
In May, Hydrofarm announced net sales for the first quarter of 2022, which stood at $111.4 million. Additionally, from $23.2 million to $16.6 million less was made altogether. A net loss of $23 million, or $0.52 per share, was announced by the corporation. According to Hydrofarm’s full-year forecast for 2022, net sales will total $480-520 million, and adjusted EBITDA will be $46-54 million, or around 10% of net sales. Terence Fitch, who was serving as president, announced his resignation from the company in June.
HYFM Stock Performance
HYFM Stock closed on July 12th at $3.27 down 34.07% in the past month. The stock has a 52-week price range of $3.23-$59.00 and is down 88.44% year to date. According to analysts at Tip Ranks HYFM stock has a 12-month average price target of $9.00 per share. In this case, this would be an increase of 175.65% from its last trading level of $3.27.
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Making Better Investments In Ancillary Pot Stocks In 2022
If you want to know whether an asset is a good fit for your portfolio and trading strategy, you should look at a company’s financial reports and news releases. Understanding chart patterns and technical indicators may help you decide on the market more effectively. For seasoned traders, the recent marijuana market volatility in July may provide an opportunity. Several factors might spark the cannabis stock market in 2022. The passage of any federal cannabis legalization legislation may have a big impact on the price of marijuana stocks in the near future. These ancillary marijuana stocks could be some of the best for your watchlist right now.
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