Ancillary Marijuana Stocks For 2023

What marijuana stocks should you buy in 2023? The ancillary marijuana stock market is one sector that has suffered severe losses in 2022. Companies that support the cannabis sector by offering support services but don’t handle the actual plant are known as cannabis auxiliary companies. Many corporations frequently assist the cannabis sector. Ancillary businesses can support the cannabis sector by offering lighting and cannabis-growing supplies.

Congress is now delaying the federal cannabis reform and SAFE Banking acts, which have significantly impacted the cannabis sector. In reality, the Senate has disregarded cannabis reform for a second consecutive year. Day traders and swing traders often profit the most when trading in a market like this. Some long-term investors use short-term trading tactics in addition to their sizeable long-term investments in the cannabis sector.

In December 2022, a few stocks with cannabis-related Nasdaq listings experienced new lows. Investors can currently purchase several of these marijuana stocks at substantial discounts. Some of these stocks may be ideal starting points for long-term investments for potential cannabis investors or provide an opportunity to profit from recent market changes. The top two ancillary cannabis stocks to keep an eye on in 2023 are listed below.

[Read More] Marijuana Stocks To Watch To End The Year

Top Ancillary Marijuana Stocks For 2023 Watchlist Right Now

  1. GrowGeneration Corp. (NASDAQ: GRWG)
  2. Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM)

GrowGeneration Corp.

GrowGeneration Corp. is renowned for operating and supplying hydroponic and organic growing facilities in the US. The business offers a selection of hydroponic, organic, and lighting alternatives for cannabis growers. Currently, GrowGen owns and operates 60 organic gardening businesses throughout the US. has always placed a high premium on extending and growing its internet presence. The website has evolved into a one-stop e-commerce destination with over 10,000 products, from nutrition to lighting technology. Over the next five years, the company plans to add more than 100 more locations to expand across the nation. In the third quarter of 2021, the company will construct the largest hydroponic garden facility in Los Angeles County.GRWG

GrowGeneration’s earnings in the third quarter of 2022 were higher than expected. Revenue for the third quarter was $70.9 million, a 39% decrease from the same period last year. As a result, Grow Gen’s third-quarter profit of $4.3 million in 2021 decreased by 279% to a net loss of $7.2 million. Revenue came in 24% beyond analyst predictions. Moreover, EPS increased by 7.7% more than anticipated by analysts. From $250 million to $275 million to $270 million to $280 million, the modified range for the 2022 revenue forecast. GrowGen opened its 60th facility in New Jersey in November.

GRWG Stock Performance

On December 30th, the shares of GRWG finished at $3.92, down 42.27% in the last month’s trading. GRWG stock is down 69.98% year to date in 2022, with a 52-week price range of $2.92-$14.10. According to CNN Business analysts, GRWG stock has a 12-month median price target of $5.13 per share. This would forecast a 130.41 percent increase over the last transaction price of $3.92.

[Read More] Best Marijuana Penny Stocks Under $1 For 2023

Hydrofarm Holdings Group, Inc.

Hydrofarm Holdings Group, Inc. is well-known for providing hydroponic and controlled environment agricultural equipment and supplies. Typically, the business offers a large selection of cannabis-growing products. The company manufactures a wide range of goods, including high-intensity, grow lights, temperature control systems, and growth aids. On November 1st, the company announced that it had purchased New Growers Equipment, Inc., a number of innovative products, and a well-known brand. In January, the company teamed up with AXEON Water Technology to provide state-of-the-art reverse osmosis water filtering technology and solutions.hyfm

In Q3 2022, Hydrofarm earned net sales of $74.2 million, compared to $123.8 million in Q3 2021. A further decrease from $30.0 million to $5.9 million in gross profit was also noted. After adjustments, the gross profit was $7.8 million compared to $33.0 million. The company reported a net loss of $(23.5) million, or $(0.52) per diluted share, as opposed to its net income of $17.3 million, or $0.37 per diluted share. Additionally, the business anticipates net sales for the 2022 fiscal year of between $330 million and $347 million.

HYFM Stock Performance

HYFM Stock closed on December 30th at $1.55, down 38.25% in the past month of trading. The stock has a 52-week price range of $1.42-$28.55 and is down 94.52% year to date. According to analysts at CNN Business, HYFM stock has a 12-month average price target of $3.75 per share. In this case, this would be an increase of 143.51% from its last trading level of $1.55.

[Read More] US Marijuana Stocks To Add To Your List In 2023

Investing In The US Cannabis Industry

These top cannabis stocks hit new lows in December; investors may find value in the stocks when they begin to rise once more. To determine whether an asset is a good fit for your trading strategy and portfolio, review a company’s financial records and most recent news releases. Understanding technical indicators and chart patterns can help you make better trading decisions. These cannabis stocks with ties to cannabis cultivation might be among the most interesting pot stocks to watch in January 2023.


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