Cannabis Stocks To Watch Before July
Are you looking for marijuana stocks as the market begins to trend upward in July? Ancillary cannabis stocks are one sector that has seen big losses in June. Cannabis stocks that support the cannabis industry but don’t deal with the plant itself are referred to as ancillary pot stocks. In May, several of the largest cannabis businesses reported their first-quarter earnings, which showed strong year-to-date revenue growth. Several of these businesses, however, have lowered their 2022 projection, blaming expectations on rising prices and the potential for a recession.
Ancillary cannabis companies provide a variety of services to the cannabis industry, including growing tools and lights, real estate investment, and internet services. As the cannabis industry is predicted to more than double over the next five years, several of these companies are ready for tremendous expansion.
At the state level, the cannabis market in the US has kept growing rapidly. However, the leading marijuana stocks now trading have suffered as a result of delays in Congress over federal cannabis legislation. Congress, though, may serve as a trigger this summer under the pretext of federal reform and the legalization of marijuana. Let’s look at the best three ancillary marijuana stocks to add to your list for July.
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Top Ancillary Cannabis Stock To Watch In July
- Leafly Holdings, Inc. (NASDAQ: LFLY)
- WM Technology, Inc. (NASDAQ: MAPS)
- GrowGeneration Corp. (NASDAQ: GRWG)
Leafly Holdings, Inc.
A well-known online cannabis marketplace and consumer resource, Leafly Holdings Inc., declared in February 2022 that its common stock, LFLY, has begun trading on the NASDAQ. The most dependable website for discovering and buying cannabis products from authorized sellers all around the world is Leafly. Every year, over 125 million individuals use Leafly to research cannabis and make online purchases from nearby merchants. The company’s extensive resources help customers make informed purchase decisions through advertising and technology services and allow cannabis businesses to attract and retain devoted customers. Customers may place purchases directly on the company’s website thanks to its May launch of an online cannabis delivery service in California.
Results for Leafly’s first quarter of 2022 were announced on May 4. Revenues increased by 40% to $57.5 million. In addition, there are now 16.4 million monthly active users, up 52% from the previous year. The business had a gross profit of $53.7 million, or a profit margin of 93%. Additionally, with a net income of $7.7 million the year before, the corporation lost $31.2 million in the quarter. The legal cannabis sector is the largest employer in the US, according to research on cannabis employment released by the company on February 23. Over 100,000 new employment and $25 billion in sales were forecast to be generated by the cannabis business in 2021. Additionally, LFLY stock will join the broad-market Russell 3000 Index at the conclusion of the 2022 Russell indexes annual reconstitution, effective after the US market opens on June 27, 2022.
LFLY Stock Performance
LFLY stock closed on June 24th at $4.83 down 21.84% in the past five trading days. Currently, the stock has a range of $4.83-$11.58 and is down 51.65% year to date. According to analysts at CNN Business LFLY stock has a median price target of $12 per share. In this case, this would represent an upside of 141.45% from its last trading price of 4.83.
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WM Technology, Inc.
Weedmaps is a user and business directory for the cannabis industry as well as an online store. It is a subsidiary owned by WM Technology, Inc. The WM Business cloud-based SaaS solutions are often used by cannabis retailers as their operating systems. The products from WM Business generally assist in adhering to the complicated and constantly evolving legislation governing the cannabis sector. In order to help small businesses, compete with the growing demand for delivery, curbside pickup, and cashless transactions, WM Technology expanded its product offering in Ontario in May by including an integrated digital payment process. The business acquired Sprout in 2021, a well-known cannabis CRM and marketing platform.
With an estimated 13.9 million monthly active users, Weedmaps now has over 18,000 business listings in the United States. The average monthly revenue per paying customer has decreased to $3789. Weedmaps said that revenues increased 40% year over year to $57.5 million when it revealed its first-quarter 2022 numbers in May. Additionally, from one year to the next, there were 16.4 million additional monthly active users. Gross profit for the business was $53.7 million, or a 93 percent profit margin. In addition, the company lost $31.2 million in the third quarter as opposed to making $7.7 million in profit in the same period last year.
MAPS Stock Performance
MAPS stock closed at $4.35 on June 24th down 19.59% in the past month. Currently, the stock has a 52-week price range of $4.215- $22.24 and is down 27.26% year to date. According to analysts at Tip Ranks MAPS stock has a 12-month average price target of $9.08 per share. In essence, this would represent an upside of 108.74% from its last trading price of $4.35.
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GrowGeneration Corporation
In the US, GrowGeneration Corp. is a well-known retailer and operator of hydroponic and organic gardening facilities. The business offers cannabis producers a variety of supplies, including organics, lighting, and hydroponic equipment. 63 organic garden centers are now owned and operated by GrowGen in the US. Since GrowGeneration.com went live, the company has focused on its online presence. With over 10,000 products ranging from nutrition to lighting technology, the website has developed into a one-stop e-commerce destination. Over the next five years, the company plans to open over 100 facilities around the US. The company built the biggest hydroponic garden facility in Los Angeles County in the third quarter of 2021.
Net sales for GrowGen’s first quarter of 2022 fell to $81.8 million as a consequence of weaker industry demand, according to the company’s May 10 reports. Additionally, third-quarter comparable store sales decreased 35.5 percent. A $5.2 million net loss or $0.09 loss per share were the results for the quarter. The total Adjusted EBITDA loss for the company was $0.7 million. GrowGeneration released Drip Hydro in May, a complete line of liquid fertilizer mixes designed for industrial planters. The previously projected revenue range for 2022 was $415 to $445 million, however that range has now been reduced to a range of $340 to $400 million.
GRWG Stock Performance
On June 24th, the shares of GRWG finished at $4.18, down 9.72% in the past month. GRWG stock is down 67.97% year to date, with a 52-week price range of $3.58-$52.80. According to CNN Business analysts, GRWG stock has a 12-month median price target of $6.25 per share. This would forecast a 49.16 percent increase over the last transaction price of $4.18.
Finding The Best Cannabis Stocks For 2022
You should decide which assets are appropriate for your portfolio and trading style by examining a company’s financial reports and news releases. By comprehending chart patterns and technical indications, you could be able to make better market decisions. For seasoned traders, the current market volatility in marijuana in June may provide an opportunity. Several factors might reignite the cannabis stock market in 2022. The passage of any federal cannabis legalization legislation might act as a major driver for marijuana stock prices this summer.
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