Best Marijuana Stocks For Your Watchlist In Q1 2022
Are you looking for ways to invest in top marijuana stocks for 2022? In general, last year the cannabis sector was delt significant declines from the delays with federal marijuana legalization and reform. This has given cannabis stocks much more potential in the new year. Last month the best cannabis stocks to buy declined in December to reach new 52-week lows. This could be a good opportunity for investors to find pot stocks for 2022.
As the new year begins the possibility of seeing some form of federal cannabis legalization increases because of upcoming elections. Currently, more than two-thirds of Americans believe cannabis should be legal and many new states are starting legal medical and recreational markets this year. One area that is positioning to grow alongside the cannabis industry this year is ancillary marijuana stocks. Ancillary cannabis companies are those companies that support the cannabis industry without touching the actual plant.
In 2021 these companies have grown significantly as the industry expands in the US and internationally. Generally, some of these companies supply the equipment that’s used to grow cannabis and others provide online services and connect customers with dispensaries and cannabis knowledge. For the next five years, the cannabis market is expected to more than double in size. Many analysts are currently forecasting significant upside for the best marijuana stocks to buy in 2022.
How To Invest In Top Pot Stocks In 2022
Before investing in cannabis stocks, it’s important to always do your own due diligence on a company. Researching a company’s financial results and studying how a stock performs in the market can help you establish the best positions for investments. In general, learning how to find good entry points and setting proper stop losses to minimize any downside can help you become a successful trader. As we start the first week of trading for 2022 let’s look at 3 top ancillary marijuana stocks for January.
[Read More] Top 10 Marijuana Stocks For Your 2022 Watchlist
Best Ancillary Cannabis Stocks For 2022 Watchlist
- Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM)
- WM Technology, Inc. (NASDAQ: MAPS)
- Merida Merger Corp. I (NASDAQ: MCMJ)
Hydrofarm Holdings Group, Inc.
Hydrofarm Holdings Group, Inc. is a prominent distributor and manufacturer of hydroponics and controlled environment agriculture equipment and supplies. In general, the company provides a wide range of equipment to help with cannabis production. The company’s products include high-intensity grow lights, temperature control systems, and growth material, among many others. In addition to a diverse range of original and creative branded items. The company announced on November 1st that it has finalized the acquisition of Innovative Growers Equipment, Inc.
Hydrofarm reported profitability for the third quarter of 2021 in November, with net sales of $123.8 million, up 28.1 % year over year. The company’s gross profit grew to $30 million, or 24.2 % of net sales. As a result, the company’s Adjusted EBITDA has increased by 116.7 % year over year to $16.1 million. The company reiterated its prior net sales forecast of $470-$490 million for 2021. The business also announced that Aurora Innovations and Greenstar Plant Products, Inc. had been acquired. This purchase is part of Hydrofarm’s ongoing drive to acquire branded product makers in important CEA categories.
HYFM Stock Performance
HYFM Stock closed on December 31st at $28.29 down 14.27% in the past month. The stock has a 52-week price range of $24.35-$95.48 and is down 46.20% year to date. According to analysts at CNN Business HYFM stock has a 12-month average price target of $49.00 per share. In this case, this would be an increase of 73.27% from its last trading level of $28.29. Currently, analysts on CNN Business have HYFM stock listed as a buy. In January 2022 HYFM could be the best ancillary cannabis stock for your list right now.
WM Technology, Inc.
Weedmaps is an online listing marketplace and the main center for cannabis users and companies. It is a subsidiary of WM Technology, Inc. The WM Business cloud-based SaaS solutions are largely used by cannabis shops as an operating system. WM Business’ products help with compliance with the cannabis industry’s complicated and ever-changing rules in general. Earlier this year, Weedmaps announced a multi-year agreement with Kevin Durant’s Thirty-Five Ventures, as well as a sponsorship arrangement with Boardroom. In September, the company purchased Sprout, a renowned cannabis CRM, and marketing platform.
In the United States, Weedmaps now has over 18,000 business listings and an estimated 13.9 million monthly active users. The average monthly income per paying client has risen to $3817, up 7%. In November, the company reported sales of $50.9 million for the third quarter of 2021. Revenue in the United States grew by 46% year over year on September 30, 2021, with 13.9 million monthly active users. In addition, gross profit was $48.8 million, with a net profit of $49.2 million. WM expects $50-$52 million in revenue in the fourth quarter of 2021. The company published first-of-its-kind research on the cannabis sector in the United States in November.
MAPS Stock Performance
MAPS stock closed at $5.98 on December 31st down 16.60% in the past month. Currently, the stock has a 52-week price range of $5.48- $29.50 and is down 51.21% year to date. According to analysts at Tip Ranks MAPS stock has a 12-month consensus price target of $13.80 per share. In essence, this would represent an upside of 130.77% from its last t trading price of $5.98. As a leader in the pursuit to end cannabis prohibition MAPS stock could be a top marijuana stock for your watchlist in January 2022.
Merida Merger Corp. I (Leafly)
Leafly is a cannabis discovery marketplace that aims to educate more than 125 million people about the plant. This sophisticated eCommerce solution aids buyers in making educated purchase decisions and helps cannabis companies to gain and retain loyal clients through advertising and technological services. In December, Leafly.com said that it was on track to fulfill its financial targets for 2021, implying that the leading cannabis-focused website was outperforming the broader market ahead of its Nasdaq debut next month. The US Securities and Exchange Commission approved the company’s registration statement earlier in the day, clearing the door for it to go public following a vote by shareholders of merger partner Merida Merger Corp I. Merida, a special-purpose acquisition company, said that its shareholders will vote on the August deal on January 14th.
Leafly released its financial results for the first three and nine months of 2021 in November. For the nine months ended September 30, 2021, the company generated $31 million in sales. As a result, Leafly had a gross profit of $27.4 million. Revenue increased by 21% year over year in Q3 2021, a year-over-year increase of 11%.
Words From The CEO
“Our successful results year-to-date, building on the momentum we have generated over the last year, are a testament to the power of our marketplace and the dedication of the skilled, rapidly growing Leafly team. “As we ramp up our next phase of growth, entering the public markets through our partnership with Merida Capital will facilitate significant investments in our brand’s platform, robust advertising tools, and unmatched insights and information – as well as reinforcing our leadership position in newly legal East Coast markets.”
Yoko Miyashita, Leafly Chief Executive Officer
MCMJ Stock Performance
MCMJ stock closed at $9.99 on December 31st before the merger is complete. Currently, the stock has a 52-week price range of $9.75-$11.27 and has traded relatively flat for the past year. According to an analyst at Market Beat MCMJ stock has a consensus price target of $15 per share. In this case, this would represent an upside of 50.2% from its current trading price. As a new marijuana stock for cannabis investors MCMJ stock could be a top cannabis stock for your list in 2022.
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