Cannabis Stocks To Add to Your List In February

Are you trying to find the best marijuana stock plays for 2023? To the astonishment of many investors, the stock market has risen at the start of 2023, and cannabis stocks are seeking to ride the wave. One part of the cannabis sector that is developing is the marijuana penny stock market. Any stock that trades for less than $5 is referred to as a penny stock for the benefit of those who are unsure. These marijuana stocks offer short-term investors high risk/reward potential due to their well-known extreme market volatility.

One sector that suffered large losses in 2022 was the marijuana ancillary stock market. Companies that support the cannabis sector but don’t handle the actual plant are known as cannabis auxiliary businesses. The cannabis sector is often supported by many firms. Businesses that provide lighting and cannabis-growing tools can benefit the cannabis sector. Let’s take a look at two of the top ancillary cannabis stocks rising this month as we approach mid-January.

Top Ancillary Cannabis Stocks For February 2023

  1. Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM)
  2. Agrify Corporation (NASDAQ: AGFY)

Hydrofarm Holdings Group, Inc.

The company Hydrofarm Holdings Group, Inc. is well known for providing agricultural supplies and equipment for hydroponic and controlled environments. Usually, the business offers a large selection of cannabis-growing products. The company manufactures a wide range of goods, including growth promoters, high-intensity grow lights, and temperature control systems. On November 1st, the company announced that it has acquired New Growers Equipment, Inc., a company with a number of cutting-edge products and a well-known name. The business teamed up with AXEON Water Technology in January to provide cutting-edge reverse osmosis water purifying technology and solutions.hyfm

In the third quarter of 2022, Hydrofarm reported net sales of $74.2 million as opposed to $123.8 million during the same period in 2021. Additionally, the gross profit decreased even more, from $30.0 million to $5.9 million. After adjustments, the gross profit was $7.8 million as 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 company anticipates net sales for the 2022 fiscal year to range between $330 million and $347 million.

HYFM Stock Performance

HYFM Stock closed on February 2nd at $2.17, up 40% in the past month of trading. The stock has a 52-week price range of $1.18-$21.25 and is up 40% year to date. According to analysts at CNN Business, HYFM stock has a 12-month average price target of $2.58 per share. In this case this would be an increase of 18.66% from its last trading level of $2.17.

[Read More] Top Cannabis Stocks To Buy Now? 2 Under $2 To Watch

Agrify Corporation

Agrify Corporation, a US-based business, provides dependable equipment and software to the indoor farming industry. The company now sells integrated grow racks, LED grow lights and vertical farming systems. Innovative software and technological solutions from Agrify let companies run at the highest levels of dependability, effectiveness, and quality without spending the bare minimum. Consulting, engineering, and construction are among the services offered by the business. In addition, the company recently purchased Precision Extraction Solutions and Cascade Sciences, two well-known suppliers of equipment and services for inspecting, processing, and extracting hemp and cannabis. Lab Society, a pioneer in cannabis extraction, distillation, and solvent separation solutions with a $10 million yearly revenue, was purchased by the business in February.

From $15.8 million at the same time in 2021 to $7.0 million in the third quarter of 2022, Agrify’s revenue decreased. Over the same period last year, revenue increased by 51.4% to $52.4 million from $34.6 million. Compared to the same quarter last year, when the gross loss was $(380) thousand, or (2.4%)%, the third quarter’s gross loss was $(4.1) million, or (58.6%) of revenue. In contrast to the prior year-to-date quarter’s gross profit (loss), which was $393 thousand, or (1.1%)% of revenue, the most recent quarter’s gross profit (loss) was $1.7 million, or 3.2% of revenue. Agrify projects adjusted sales for the upcoming fiscal year 2022 to range between $65 million and $70 million.

AGFY Stock Performance

AGFY stock closed on February 2nd at $0.5081, up 52.58% in the past month of trading. Currently the stock has a range of $0.246-$86.35 and is up 52.58% year to date. According to analysts at CNN Business, AGFY stock has a median price target of $1.68 per share. In this case this would represent an upside of 229.66% from its last trading price of $0.5081.

[Read More] Are Cannabis REITs A Buy In February? 3 On Watch Long Term

Top Ancillary  Pot Stocks For February 2023

These leading cannabis equities hit new lows in December; now that they are beginning to recover, investors may find value in the stocks. Determine whether an asset fits well with your trading strategy and portfolio by looking at a company’s financial records and the most current news releases. In general, understanding technical indicators and chart patterns can help you make better trading decisions. These ancillary marijuana stocks with ties to marijuana cultivation could be among the most interesting ones to watch in February 2023.


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