Best Ancillary Marijuana Stocks To Watch Now
Which marijuana stocks should you buy in 2022? The ancillary marijuana stock market is one sector that has experienced sharp drops to start the year. Those that don’t know companies that deal with cannabis indirectly support the marijuana industry but do not handle the plant themselves are ancillary cannabis companies. Many businesses typically support the cannabis sector. By offering cannabis growing supplies or having an internet presence, ancillary firms can support the cannabis sector.
Top ancillary cannabis equities hit fresh lows in November before rising alongside the overall market. A recent attempt to remove the federal cannabis prohibition in the US is one cause of this upswing. President Biden’s and Senate Majority Leader Chuck Schumer’s recent remarks have raised the prospect of removing cannabis prohibition and establishing conventional banking for the industry.
Investors can currently purchase some of these marijuana stocks at significant discounts. Some of these stocks can offer potential cannabis investors a great place to start their long-term investments or a chance to profit from recent market changes. The 2 top ancillary marijuana stocks to watch in November are listed below.
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Ancillary Cannabis Stocks For Your Watchlist Next Week
- GrowGeneration Corp. (NASDAQ: GRWG)
- The Scotts Miracle-Gro Company (NYSE: SMG)
GrowGeneration Corp.
GrowGeneration Corp. is well-known in the United States for running and delivering hydroponic and organic growing facilities. The business provides a range of hydroponic, organic, and lighting options to cannabis farmers. Currently, GrowGen owns and runs 62 organic gardening businesses in the US. expanding growing GrowGeneration.com has prioritized its online presence ever since the website’s debut. With over 10,000 products ranging from nutrition to lighting technology, the website has developed into a one-stop e-commerce destination. The business intends to launch more than 100 locations across the country during the following five years. The business will build the biggest hydroponic garden facility in Los Angeles County during the third quarter of 2021.
GrowGeneration beat expectations in its third quarter 2022 earnings. The company produced third-quarter revenue of $70.9 million down 39% from Q3 2021. As a result, Grow Gen sustained a net loss of $7.2 million down 279% from a Q3 2021 profit of $4.3 million. Revenue exceeded analyst estimates by 24%. Earnings per share (EPS) also surpassed analyst estimates by 7.7%. Revenue guidance for 2022 has been updated to be between $270 million to $280 million, an improvement from the previous range of $250 million to $275 million.
GRWG Stock Performance
On November 11th, the shares of GRWG finished at $5.93, up 72.38% in the last five trading days. GRWG stock is down 54.56% year to date, with a 52-week price range of $2.92-$25.44. According to CNN Business analysts, GRWG stock has a 12-month median price target of $5.13 per share. This would forecast a 13.43 percent decline over the last transaction price of $5.93.
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The Scotts Miracle-Gro Company
Scotts Miracle-Gro, the world’s largest manufacturer of brand-name consumer lawn and garden products, has entered the cannabis market. The company’s wholly-owned subsidiary, Hawthorne Gardening, offers hydroponic tools, lighting, and fertilizers for cannabis development. Scotts expanded the Hawthorne line in January by including True Liberty Bags and Luxx Lighting. The acquisition will enhance Hawthorne’s already strong lighting lineup. Hawthorne has kept its full-year projection unchanged despite a decrease in revenue.
In November ScottsMiracle-Gro announces full-year sales and earnings in line with guidance. For the quarter that ended September 30, 2022, company-wide sales decreased 33 percent, to $493.6 million. U.S. Consumer segment sales declined 18 percent, to $302.1 million, from $369.4 million. Hawthorne segment sales decreased 49 percent, to $168.5 million, compared with $329.1 million during the same period last year. Company-wide sales on a full-year basis decreased 20 percent, to $3.92 billion, compared with $4.93 billion a year ago. Sales in the U.S. Consumer segment decreased by 8 percent, to $2.93 billion. Hawthorne sales decreased 50 percent to $716.2 million.
SMG Stock Performance
SMG stock closed at $63.91 on November 11th up 58.82% in the last month. Currently, the stock has a 52-week price range of $39.06-$178.05 and is down 60.30% year to date. According to analysts at CNN Business SMG stock has a 12-month price target of $50 per share. This forecast represents a decrease of 21.81% from its last trading price of $63.91.
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Ancillary Cannabis Stocks And Investing In Cannabis Before 2023
In November, these top cannabis stocks reached new lows; whenever they start to rise again, investors might find value in the stocks. Examine a company’s financial records and most current press releases to see if an asset is a good fit for your trading strategy and portfolio. Making better trading decisions can be aided by an understanding of technical indicators and chart patterns. One of the most interesting things to watch in November may be these cannabis stocks with connections to cannabis production.
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