Best Cannabis Stocks To Watch In October
Do you intend to make long-term investments in the best marijuana stocks? Given the market volatility linked to the top cannabis stocks to watch right now, finding long-term investments with consistency may be difficult. In general, cannabis REITs have been among the top performers on the marijuana stock market over the long term. Given their outstanding investor returns over the preceding five years, some might be preparing for another run.
In recent years, cannabis REITs have been among the top-performing marijuana stocks. This is due in part to the fact that a lot of marijuana REITs pay dividends to shareholders, which is still unusual for cannabis companies. As a result, numerous institutional investors and private equity firms have expressed interest in these top marijuana stocks. Additionally, it is anticipated that the cannabis market would more than double in size over the next five years, supporting the steady growth of marijuana REITs.
Specifically, by 2025, the marijuana market in the United States is expected to generate $25 billion in sales, according to the most recent projections made by the industry analytics company New Frontier Data. If you’re an investor looking for long-term holdings in the cannabis sector, let’s look at two of the best cannabis stocks for your long-term portfolio right now.
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Top Cannabis Stocks To Watch For Long-Term Positions In 2022
- AFC Gamma, Inc. (NASDAQ: AFCG)
- Power REIT (NYSE: PW)
AFC Gamma, Inc.
AFC Gamma, Inc., a well-known cannabis ancillary company, has a healthy cash flow and effective management techniques. The company, which started operating in 2020, focused on the principles of supply and demand, supply and demand locations, as well as real estate security and other forms of collateral. In general, first-lien loans, mortgage loans, construction loans, bridge financings, and other unconventional financing solutions are among the areas of expertise of AFCG. The cannabis industry, which is rapidly growing, has been the focus of AFC Gamma’s most recent business activities. The company approved a $100 million option as well as a credit upsize of $250 million with Verano Holdings Corp. (OTC: VRNOF).
AFC Gamma published financial results for the second quarter of 2022 with a net income of $11.4 million, or $0.58 per basic weighted average share of common stock. The business earned $13.6 million in distributable earnings in the second quarter of 2022, or $0.69 per basic weighted average share of common stock. For the second quarter of 2022, AFC also paid a dividend of $0.56 per common share on July 15, 2022, an increase of 47% from the second quarter of 2021. Importantly, the company’s distributable earnings exceeded the stated dividend for the sixth consecutive quarter. Q3 of 2022, which concludes on September 30, will have a $0.56 dividend per share, according to AFC Gamma.
AFCG Stock Performance
On September 30th, AFCG shares closed at $15.30, an 11.61 percent decline from the previous month. The stock, which has a price range of $14.90 to $25.50, is down 32.78% year to date. Analysts at CNN Business predict that the 12-month average price for AFCG shares will be $22. In comparison to the stock’s most recent trading price of $15.30, this prediction shows a gain of 43.42 percent.
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Power REIT (PW)
Power REIT’s primary objective is to be a real estate investment trust that places a premium on long-term investments with better risk-adjusted returns. The portfolio of CEA buildings owned by Power REIT is quickly growing to include more processing centers and greenhouses. The leases for the buildings have been taken over by tenants who have been given the authorization to grow medical marijuana on the property. Power REIT will use the money to finish making the required upgrades to the assets that are ready for development. Power REIT owns greenhouse facilities with opportunities for expansion.
For the second quarter of 2022, PW reported a core FFO of $0.41 per share. In comparison, this is a decrease from the core FFO of $0.51 for the corresponding period in 2021. Additionally, for the quarter that ended June 30, 2022, core FFO was $0.41 per share as opposed to $0.40 per share for the quarter that ended March 31, 2022. PW now has 22 greenhouse-based controlled environment agriculture (CEA) properties with a total square footage of more than 2.2 million. PW owns 7 ground leases for solar farms totaling 601 acres, in addition to 112 miles of railroad land. Power Series 7.75% REIT The Trust paid quarterly dividends to a cumulative redeemable perpetual preferred stock in the amount of about $163,000 ($0.484375 per share).
PW Stock Performance
PW stock closed on September 30th at $10.67 down 39.64% for the last month of trading. Currently, the stock has a 52-week price range of $10.50-$81.99 and is down 84.51% year to date. According to analysts at CNN Business PW stock has a consensus price target of $44 per share. In this case, this would represent an upside of 301.09% from its last trading price of $10.67.
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Investing Long Term In The Cannabis Industry In 2022
Cannabis REITs can be a fantastic choice for new investors looking for long-term investments to enter the cannabis industry. Before investing in a company, you should always do your own research. The financial statements and press releases of the companies may help you determine which ones are the best investments. If you want to make long-term investments, these marijuana stocks might be the ones to watch to start October.
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