Best Cannabis Stocks For The New Year
Happy New Year to all the cannabis investors around the globe! In 2021 the cannabis sector ended the year with a significant decline in value. But during the second half of December, there has been an uptrend in trading for many of the best marijuana stocks to buy in 2022. Although the cannabis sector has not performed well in the market this year, many leading cannabis companies continued to deliver strong earnings in 2021.
In general, the cannabis industry grew rapidly this year with many top-tier MSOs making an entrance into new markets and expanding their presence in already established markets. As it stands, going into the new year many top pot stocks are trading near their lowest values of 2021.
For new investors looking to gain exposure to the cannabis industry, it could be a good time to make a watchlist of the best cannabis stocks to invest in for 2022. In general, with the possibility of seeing some form of federal marijuana legalization next year, there are a few major catalysts that could bring upside to pot stocks. As you prepare your trading strategies for next year here are 10 top marijuana stocks for your list in 2021.
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10 Top Marijuana Stocks For Your 2022 Watchlist
- Trulieve Cannabis Corp. (OTC: TCNNF)
- Curaleaf Holdings, Inc. (OTC: CURLF)
- Green Thumb Industries Inc. (OTC: GTBIF)
- Cresco Labs Inc. (OTC: CRLBF)
- Verano Holdings Corp. (OTC: VRNOF)
- Ayr Wellness Inc. (OTC: AYRWF)
- Innovative Industrial Properties, Inc. (NYSE: IIPR)
- Power REIT (NYSE: PW)
- GrowGeneration Corp. (NASDAQ: GRWG)
- Agrify Corporation (NASDAQ: AGFY)
Trulieve Cannabis Corp.
At the present time, with a market share of roughly 46% in Florida, Trulieve Cannabis Corp. is a high-performing cannabis company. The company inaugurated its 112th dispensary in the state on December 8th. Harvest Health & Recreation Inc. was purchased, and the company is now expected to generate over $1.2 billion in revenue by 2021. With 158 retail dispensaries, the company is currently the industry leader in the United States. In addition, the corporation has a cultivation and processing capacity of 3.5 million square feet. Trulieve has been given a production license in Georgia, allowing the business to expand its footprint in the Southeast cannabis market. In addition, the company opened its first dispensary in Massachusetts, paving the way for future growth.
Trulieve announced its third-quarter 2021 results in November, marking the company’s 15th straight profitable quarter. Over the previous year, the company’s net revenue climbed by 64% to $224.1 million. As a result, Trulieve earned $153.9 million in gross profit, with a gross margin of 68.7%. The company’s adjusted EBITDA was $98 million, or 43.7 percent of revenue. The corporation also started its initial agricultural ventures and operated its first dispensaries in West Virginia.
Curaleaf Holdings, Inc.
Packaged cannabis products are distributed by Curaleaf Holdings, Inc., a multi-state cannabis retailer with 128 retail locations across the United States. In addition, Curaleaf International, a wholly-owned subsidiary of the corporation, has launched operations in Germany, increasing access to medicinal cannabis products through its totally owned company Adven GmbH. In the United States, Curaleaf’s Select brand is one of the most well-known. After acquiring Tryke Companies in November, Curaleaf expanded its operations to three states. The corporation presently has properties in Arizona, Nevada, and Utah in its portfolio. Curaleaf announced the purchase of Bloom dispensaries in December, adding 16 more sites to its Arizona footprint.
In November, Curaleaf reported $317 million in sales for the third quarter of 2021, up 74 percent year over year. Adjusted EBITDA for the year was $71 million, up 69 percent over the prior year. Specifically, Curaleaf’s cash flow from operations in Q3 2021 was $52 million, or 16% of revenue. Consequently, gross cannabis sales revenue in Q3 2021 increased by 61% year over year to $144 million. Los Suenos Farms was also purchased, raising the corporation’s total cultivation capacity to 4.4 million square miles.
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Green Thumb Industries Inc.
At the present time, Green Thumb Industries Inc. is a major player in the U.S. cannabis consumer packaged goods market. The company currently has 73 retail locations in 15 states, including a new store in New Jersey. In addition, GTI currently has 111 licenses for retail outlets and plans to expand. Also, as part of a unique deal with the privately held Cookies Brand, GTI established a Cookies on the Las Vegas Strip in 2021. Green Thumb recently announced that it had completed its acquisition of Dharma Pharmaceuticals and had entered the Virginia cannabis industry. The company announced on December 30th that it had acquired Leafline Industries and will be entering the Minnesota market.
Green Thumb reported revenues of $233.7 million for the third quarter of 2021 in November, increasing 48.7% year over year. The company’s GAAP net income of $20.2 million, or $0.08 per diluted share, is up for the sixth quarter in a row. Furthermore, adjusted operating EBITDA increased to $81.2 million, accounting for 34.7 percent of total sales. Green Thumb has $285.8 million in cash on hand at the end of the third quarter. Green Thumb merchandise became more widely available, and traffic at the 68 dispensaries increased, driving the company forward.
Cresco Labs Inc.
Cresco Labs Inc. is a vertically integrated cannabis company based in the United States. The company is presently the biggest provider of branded cannabis products in the United States. Cresco is the #1 cannabis brand in Illinois and Pennsylvania, according to a recent BDSA report. In fact, Cresco now has 45 retail outlets, 20 production facilities, and 47 retail licenses spread throughout 11 states. As part of its growth into new markets, the company recently established its fourth Sunnyside dispensary in Pennsylvania. In addition, the business said that its Good News brand will expand its product line to include additional consumables and vaping options. To boost profitability and remove third-party distribution, the company will shift to owned brand distribution in California.
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Verano Holdings Corp.
Verano Holdings is one of the largest multi-state cannabis companies in the United States, providing customers with legal cannabis products. The company, in general, produces high-quality cannabis products that are offered under a variety of consumer names. Verano, for example, has 90 operating dispensaries and 12 growing and processing facilities throughout 11 states. In Florida, the corporation operates 41 dispensaries, making it a significant presence in the state. Verano plans to develop more than 92 dispensaries by 2021. Zen LeafTM and MÜVTM, the company’s retail brands, run dispensaries that serve both the therapeutic and adult-use markets. In October, the company established a drive-through dispensary on Flamingo Road in Las Vegas.
Verano just bought TerraVida and The Healing Center. As a result of the deal, Verano currently owns six dispensaries in Pennsylvania and has permission to operate three more. Earlier this year, the company opened a flagship dispensary in Pittsburgh with a four-lane drive-through. In November, the company announced third-quarter 2021 results, with sales of $207 million, up 106 percent from the previous year. Furthermore, gross profit increased by 33% sequentially to $133 million, or 64% of revenue, on an unadjusted basis. In Q3, Verano expanded its reach by opening seven additional dispensaries throughout its core markets.
Ayr Wellness Inc.
Ayr Wellness Inc. is a Florida-based cannabis enterprise with a huge footprint. The firm currently has a total of 60 facilities around the country, including 43 dispensaries in Florida. Herbal Remedies Dispensaries, LLC was also purchased, giving the corporation access to the Illinois market. A temporary license to sell adult-use cannabis in Massachusetts dispensaries has been given to Ayr. In October, the Kynd premium flower was launched in Arizona. The company recently opened its sixth affiliated operating dispensary in Pennsylvania. In December, Ayr received approval to open its 86,000 square foot Arizona growing and manufacturing facility.
In November, Ayr announced profitability for the third quarter of 2021, with revenues of $96.2 million, up 111 % year over year. Overall, the company’s adjusted EBITDA improved by 40% to $26 million year over year. Under US GAAP, Ayr reported an operating loss of $8.9 million, which includes a $34.9 million one-time charge and $8.9 million in non-operating adjustments. Furthermore, the company predicted a 10% sequential growth in Q4 2021, as well as a level Adjusted EBITDA from Q3 to Q4. Ayr’s adjusted EBITDA forecast for 2022 has been reduced to $250-$300 million, while its sales objective of $800 million has remained maintained.
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Innovative Industrial Properties, Inc.
Innovative Industrial Properties, Inc., a real estate investment trust focused on the US-regulated cannabis sector, is one of the major marijuana REITs. The corporation presently has 7.7 million rentable square feet and 2.7 million square feet under construction. With a weighted average remaining lease period of 16.7 years, many of these properties are 100% leased. The corporation now owns 103 properties in 19 states. IIP has invested $1.5 billion and promised another $391.7 million to reimburse renters for property renovations as of November 3rd. The company continues to purchase properties, particularly in Pennsylvania and Massachusetts, which will significantly increase its lease portfolio in 2021.
IIP released its third-quarter 2021 results in November, reporting total revenues of $53.9 million for the period. This marks a 1% increase over the previous year’s figure. The company made roughly $29.8 million in net income in the third quarter or about $1.20 per diluted share. In October, IIP issued a quarterly dividend of $1.50 per share, up 28% over the prior year. The corporation presently has $554.4 million in short-term investments and $127.3 million in cash. IIP issued a $1.50 per share dividend for the fourth quarter of 2021 on December 15th. This works out to a $6 yearly dividend per common share. The corporation added 27 properties in Colorado, Pennsylvania, and North Dakota to its portfolio in December.
Power REIT (PW)
Power REIT is a real estate investment trust that focuses on long-term real estate with high risk-adjusted returns. The company holds a growing portfolio of Controlled Environment Agriculture (CEA) buildings, including greenhouses and associated processing facilities. Currently, the properties are leased to tenants who are authorized to grow medicinal cannabis on the premises. The assets are slated for growth, and Power REIT can pay the property enhancements. Furthermore, Power REIT’s greenhouse facilities provide a sustainable growing alternative.
Power REIT increased its reach in Colorado by purchasing a 10-acre property that includes a 12,000-square-foot greenhouse. Consequently, the business now has investment assets totaling over 83 acres and 383,328 square feet of CEA facilities throughout Southern Colorado. The corporation paid $18.4 million in September for a 556,146 square foot cannabis greenhouse growing and processing facility. This will be Michigan’s and one of the United States’ largest cannabis production facilities. Power REIT owns 21 CEA buildings totaling more than 1 million square feet as of November. The trust paid $0.484375 per share in dividends in the third quarter, for a total of $1.9375 per total share.
GrowGeneration Corporation
At the present time, GrowGeneration Corp. is a major owner and operator of retail hydroponic and organic gardening businesses in the United States. Organics, lighting, and hydroponic equipment are among the things that the company provides and distributes to cannabis producers. GrowGen now has 62 organic garden centers in 13 states, with the 11th and 12th facilities opening in southern California lately. Since the introduction of GrowGeneration.com, the firm has focused on its internet presence. The site now serves as a one-stop e-commerce shop, offering over 10,000 products ranging from nutrition to lighting technology. Within the next five years, the company hopes to establish over 100 locations in the United States. During the third quarter, the firm announced the opening of Los Angeles County’s largest hydroponic garden facility.
GrowGen reported record third-quarter revenues of $116.0 million in November, up 111 % year over year. In the third quarter, the company generated $10.8 million in Adjusted EBITDA. In addition, year-over-year same-store sales increased by 15.7 percent. GrowGen earned $0.07 per share in the third quarter because of this. For 2021, the full-year projection has been reduced to $435-440 million.
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Agrify Corporation
Agrify Corporation, situated in the United States, manufactures precise hardware and software for the indoor agricultural industry. In general, the company currently offers vertical farming systems, integrated grow racks, and LED grow lights. Agrify’s cutting-edge technology and software solutions help businesses achieve the highest possible quality, consistency, and output at the lowest possible cost. The company’s total services include consulting, engineering, and construction. Precision Extraction Solutions and Cascade Sciences, two well-known manufacturers of extraction, post-processing, and testing equipment and solutions for the cannabis and hemp sectors, was a recent acquisition by the company. In October, the company announced its entry into the Arizona cannabis industry, thanks to a partnership with Olive El Mirage.
In November, the company announced its third-quarter 2021 results, which showed revenues of $15.8 million, up 460 % year over year. Specifically, Agrify’s new bookings were $32.2 million, increasing its total backlog to $117.5 million. Bud & Mary’s Cultivation, Inc. has announced the first full turnkey solution partnership with Agrify, which will see the company install up to 1200 vertical farming units at its 50,000 square foot facility. Curaleaf Holdings, Inc. (OTC: CURLF) has also entered into a multi-year research and development arrangement with the company. In this case, this research will look at the impact of the cultivation environment on plant health and harvest output. The company reiterated its full-year forecast of $48-$50 million for 2021.
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