Best Cannabis Stocks For Watchlist This Month
In 2023, are you going to invest in marijuana stocks? In Q1 2023, the stock market for the cannabis sector’s ancillary companies saw huge losses. Cannabis ancillary firms help the cannabis industry but don’t deal with the actual plant. Many different companies usually support the cannabis sector. Lighting distributors and equipment makers are beneficial to the cannabis industry.
The ongoing growth of legal cannabis markets is one change that might affect the ancillary cannabis industry in 2023. Demand for associated products and services is anticipated to rise as more states and nations legalize cannabis for medical or recreational use. This might open doors for new market entrants and motivate established companies to diversify their product lines. When trading in a market like this, day traders and swing traders usually make the greatest money. Some long-term investors also elect to use short-term trading tactics in addition to their large long-term investments in the cannabis sector.
Investors can currently purchase some of these marijuana stocks at significant discounts. For prospective cannabis investors, many of these stocks may prove to be the greatest long-term entry opportunities or present an opportunity to profit from recent market instability. Below is a list of the top 3 marijuana-related stocks to watch in May 2023.
Best Ancillary Cannabis Stocks For Watchlist In May 2023
- GrowGeneration Corp. (NASDAQ: GRWG)
- Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM)
- Agrify Corporation (NASDAQ: AGFY)
GrowGeneration Inc. is renowned for operating and supplying hydroponic and organic growing facilities in the US. The business offers a variety of hydroponic, organic, and lighting alternatives to cannabis growers. GrowGen currently owns and operates 60 organic gardening companies in the US. The upkeep of the GrowGeneration.com website has always been one of our primary concerns. The website has evolved into a one-stop e-commerce destination with over 10,000 products, spanning from nutrition to lighting technology. Over the next five years, the company plans to add more than 100 new locations in order to expand across the nation. In the third quarter of 2021, the company will construct the largest hydroponic garden facility in Los Angeles County.
The company announced its 2022 fourth quarter and full-year results on March 15. Notably, same-store sales fell by 51.9%, while net revenues, which came to $54.5 million in the fourth quarter, declined by more than 40%. Additionally, the gross profit fell from $23.1 million, or 25.5% of net revenues, to $9.6 million, or 17.6% of net revenues. In comparison to Q4 2021, GrowGen saw a net loss of $4.1 million, or $(0.07) per diluted share, in Q4 2022, it was $15.0 million, or $(0.25) per diluted share. The corporation had earlier set a target range of $278.2 million for net revenue; however, real net revenue fell by about 34.2% for the entire year of 2022. Results for the company’s first quarter of 2023 will be announced on May 9 following the market’s closure.
GrowGen’s full 2023 projection called for net revenues in the $250 million to $270 million range. Additionally, Adjusted EBITDA for the entire 2023 year turned a $4 million loss into a $1 million profit. Net revenues will range from $55 to $57 million for the first quarter of 2023, with an adjusted EBITDA loss of $2 to $4 million.
GRWG Stock Performance
On May 2nd, the shares of GRWG finished at $3.21, down 6.14% in the last month of trading. GRWG stock is down 18.11% year to date, with a 52-week price range of $2.77-$8.63. According to CNN Business analysts, GRWG stock has a 12-month median price target of $4.28 per share. This would forecast a 33.59 percent increase over the last transaction price of $3.21.
Hydrofarm Holdings Group, Inc.
A well-known producer of agricultural tools and supplies for hydroponic and controlled environments is Hydrofarm Holdings Group, Inc. The business consistently provides a wide range of marijuana-growing supplies. The company produces a wide variety of products, such as temperature control systems, high-intensity grow lights, and growth boosters. The business said on November 1st that it had acquired New Growers Equipment, Inc., a business with many innovative products and a recognizable name. In order to offer leading-edge reverse osmosis water filtration technology and solutions, the company partnered with AXEON Water Technologies in January.
The company released its results for the fourth quarter and 2022. Q4 net sales decreased from Q4 2021’s $110.4 million to $61.5 million. Hydrofarm had a gross loss of $(0.5) million as opposed to its $18.7 million in gross profit. Additionally, adjusted gross profit was $9.0 million as opposed to $23.3 million. In the company’s fiscal year 2022, net revenues decreased from $479.4 million in Q4 2021 to $344.5 million. Additionally, gross profit was lost from $101.5 million to $29.3 million. The business recorded a net loss of $(285.4) million for the fiscal year 2022 as opposed to a net profit of $13.4 million in Q4 2022. After the market close, the company will release its first quarter 2023 results on May 10th.
HYFM Stock Performance
HYFM Stock closed on May 2nd at $1.405, down 18.79% in the past month of trading. The stock has a 52-week price range of $1.18-$9.74 and is down 9.35% year to date. According to analysts at CNN Business, HYFM stock has a 12-month average price target of $2.13 per share. In this case, this would increase 51.25% from its last trading level of $1.405.
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The American company Agrify Corporation supplies trustworthy machinery and software to the indoor farming industry. The company now sells integrated grow racks, LED grow lights, and vertical farming systems. Businesses may function at the highest levels of dependability, effectiveness, and quality while only investing minimal money thanks to Agrify’s cutting-edge software and technology solutions. The business offers a range of services, such as consulting, engineering, and building. Precision Extraction Solutions and Cascade Sciences, two well-known suppliers of equipment and support services for analyzing, processing, and extracting hemp and cannabis, were recently acquired by the company. The business purchased Lab Society in February, a pioneer in cannabis extraction, distillation, and solvent separation solutions, with a $10 million yearly revenue.
In the third quarter of 2022, Agrify’s revenue dropped from $15.8 million at the same time in 2021 to $7.0 million. From $34.6 million in the same period last year to $52.4 million this year, revenue increased by 51.4%. The third quarter’s loss was $(4.1) million, or (58.6%) of revenue, versus the same period the prior year when the gross loss was $(380) thousand, or (2.4%). 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 of between $65 million and $70 million for the upcoming fiscal year 2022. Denver Greens’ whole turnkey cultivation plant was completed, subject to final inspection, the company reported in April.
AGFY Stock Performance
AGFY stock closed on May 2nd at $0.2296, up 35.06% in the past month of trading. At the present time, the stock has a range of $0.14-$31.95 and is down 31.05% 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 657.58% from its last trading price of $0.2296.
Making Better Trades In The Cannabis Sector
In general, by examining their financial accounts and press announcements, you might be able to determine which cannabis businesses are the best on the market. Many seasoned traders are actively placing short-term transactions on well-known cannabis companies to profit from the present market volatility. Before opening a position, use technical indicators and chart patterns to help you identify the best market opportunities. Your chances of success will rise if you search for trade opportunities. Due to the volatility of the leading marijuana companies, these might be some of the best marijuana stocks to follow this month.
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