Could Cannabis Stocks Begin To See Gains In 2022?
As the invasion of Ukraine by Russia rattles the overall markets are you looking for marijuana stocks to buy? With earnings being reported for most cannabis companies in March investors could begin to see cannabis stocks trade on fundamentals instead of federal cannabis reform. Since the presidential election in 2020 top marijuana stocks have seen upside due to the belief the US would legalize cannabis federally. Because this failed to happen the cannabis sector spent most of 2021 declining from the highs reached in February 2021.
Look one year later and top pot stocks are near their lowest values in a 52-week period. In January most cannabis stocks established new lows as 2022 began. This could be an opportunity to find top cannabis stocks to invest in at lower price points. One questions investors are asking right now is will the market continue to decline? With many analysts predicting a bear market and a possible recession this year, there could possibly be more downside.
In fact, with the Fed announcing rate hikes in March there could be more downward pressure this quarter. As it stands the cannabis market has many potential catalysts on the horizon this year. For one another attempt to pass SAFE Banking has already been expressed in February. In addition, in the Senate Majority Leader Chuck Schumer has announced he will introduce his federal marijuana legalization bill in April.
Investing In The Cannabis Industry And Understanding Pot Stocks
In the next five years, the cannabis industry is forecast by analysts to more than double in size. This could mean the best-positioned cannabis companies could experience significant revenue growth and continue to expand. Before investing in pot stocks there are some important details to consider. For one top marijuana stocks are known for having significant market volatility. This makes it difficult for long-term investors to establish positions. One way cannabis investors take advantage of the price fluctuations in the market is by trading around a core position. This intel’s for the investor to establish a long-term position in the cannabis stock and then take advantage of the short-term volatility by using day trading and swing trading techniques.
[Read More] Best US Marijuana Stocks To Watch Right Now
Before investing in top marijuana stocks, it’s important to do your research on a company. In general, looking into a company’s financials and press releases can allow you to find the best-performing companies to invest in. Additionally, watching how a stock behaves in the market can allow you to establish its trends and make the best entry points for your position. As the market continues to be heavily affected by current world events let’s look at 3 top marijuana stocks to watch before earnings.
Top Marijuana Stocks Reporting Earnings In March 2022
- Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM)
- Green Thumb Industries Inc. (OTC: GTBIF)
- GrowGeneration Corp. (NASDAQ: GRWG)
Hydrofarm Holdings Group, Inc.
Hydrofarm Holdings Group, Inc. is well-known hydroponics and controlled-environment agriculture supplies and equipment distributor and producer. In general, the company sells a diverse range of cannabis-growing equipment. The company’s products include high-intensity grow lights, temperature control systems, and growth material, to name a few. Aside from a diverse selection of one-of-a-kind and imaginatively branded items. The company stated on November 1st that it has finalized the acquisition of Innovative Growers Equipment, Inc. On March 1st the company will deliver its fourth quarter and full-year 2021 financials after the market close.
Hydrofarm reported profitability for the third quarter of 2021 in November, with net sales of $123.8 million, up 28.1 percent year on year. The corporation’s gross profit grew to $30 million, or 24.2 percent of net sales. As a result, the company’s Adjusted EBITDA increased by 116.7 percent year over year to $16.1 million. The company kept its previous net sales estimate of $470-$490 million for 2021. According to the company, Aurora Innovations and Greenstar Plant Products, Inc. were also purchased. Hydrofarm’s ongoing endeavor to acquire branded product makers in key CEA categories is reflected in this transaction. In January, the company and AXEON Water Technologies formed a collaboration to offer breakthrough reverse osmosis water purifying technology and solutions.
HYFM Stock closed on February 25th at $20.04 up 8.44% in the past five trading days. The stock has a 52-week price range of $16.74-$73.22 and is down 58.52% in the past six months. According to analysts at CNN Business HYFM stock has a 12-month average price target of $38 per share. In this case, this would be an increase of 89.53% from its last trading level of $20.05.
Green Thumb Industries Inc.
Green Thumb Industries Inc. is a key player in the cannabis CPG market in the United States. At the present time, GTI now has 75 sites in 15 states, including one in New Jersey. GTI has 111 retail licenses and is looking to grow. As part of a one-of-a-kind agreement with the privately held Cookies Brand, GTI opened a Cookies on the Las Vegas Strip in 2021. After completing the acquisition of Dharma Pharmaceuticals, Green Thumb has announced its entry into the Virginia cannabis market. Leafline Industries was acquired by the company, giving them access to the Minnesota market.
Green Thumb reported revenues of $233.7 million for the third quarter of 2021 in November, increasing 48.7% year over year. The company’s GAAP net income of $20.2 million, or $0.08 per diluted share, improved for the sixth quarter in a row. In addition, adjusted operating EBITDA increased to $81.2 million, accounting for 34.7 percent of total revenue. Green Thumb has $285.8 million in cash on hand at the end of the third quarter. Foot traffic at Green Thumb’s 68 dispensaries increased as the business’s products became more widely available, propelling the company forward. Before the market opens on March 1st, the company will announce its fourth-quarter and full-year 2021 earnings.
On February 25th, GTBIF shares finished at $18.99, down 10.72 percent in the previous five trading days. Currently, the stock has a 52-week price range of $16.66-$37.37 and is down 36.83% in the last six months.
GrowGeneration Corp. is a well-known retail hydroponic and organic gardening business owner and operator in the United States. Organics, lighting, and hydroponic equipment are just a few of the items that the company sells to cannabis growers. GrowGen now has 63 organic garden centers. The company has concentrated on its digital presence since the launch of GrowGeneration.com. The website has evolved into a one-stop e-commerce destination, with over 10,000 goods spanning from nutrition to lighting technology. The company intends to establish over 100 facilities around the United States during the next five years. During the third quarter, the company announced the opening of the largest hydroponic garden facility in Los Angeles County.
GrowGen issued its fourth-quarter and full-year sales estimates on January 13th, predicting record revenue in 2021. Overall, revenues for the year totaled $420-$422 million, an increase of 118 percent over the previous year. In addition, same-store sales increased by $24.4 in 2021. The company will release its fourth quarter and full-year financials on March 1st after the close.
On February 25th, the shares of GRWG finished at $8.37, up 9.41 percent in the past month. GRWG stock is down 73.58 percent in the last six months, with a 52-week price range of $6.74-$59.32. According to CNN Business experts, GRWG stock has a 12-month median price target of $19 per share. This would forecast a 127.54 percent increase over the last transaction price of $8.37.