Monthly Gains: Top Ancillary Cannabis Stocks Investors Should Know About
The US cannabis industry continues to expand rapidly, presenting unique opportunities for investors in ancillary cannabis stocks. Analysts project the market could reach $100 billion in value by 2030 as legalization spreads across states. Ancillary companies like WM Technology, Hydrofarm, and NewLake Capital Partners provide essential services that support this growth. These businesses benefit from the demand for advertising platforms, cultivation equipment, and real estate solutions. Moreover, they offer an indirect way to invest in cannabis while avoiding risks tied to plant-touching operations. As the industry matures, ancillary stocks remain critical for long-term success.
Investors should approach these opportunities with proper technical analysis and sound risk management strategies. Analyzing price trends and trading volumes can identify ideal entry and exit points. Diversification is also essential to reduce exposure to market volatility. While ancillary stocks hold promise, potential risks remain due to regulatory uncertainties. Using stop-loss orders and maintaining realistic expectations can further safeguard investments. By combining research with disciplined strategies, investors can maximize their chances of success in this growing industry.
As the cannabis industry evolves, ancillary companies continue to play a vital role in its growth. These businesses provide essential support without directly touching the plant. This positions them uniquely to capitalize on the industry’s expansion. In the past month, three ancillary cannabis stocks have shown significant upside: **WM Technology, Inc. (MAPS)**, **Hydrofarm Holdings Group, Inc. (HYFM)**, and **NewLake Capital Partners, Inc. (NLCP)**. These companies operate in diverse segments of the cannabis industry, from digital marketplaces to agricultural equipment and real estate. Below, we provide a closer look at each of these top performers.
[Read More] 3 Marijuana Stocks For Future Gains
Ancillary Cannabis Stocks on the Rise: Last Month’s Top Performers
- WM Technology, Inc. (NASDAQ: MAPS)
- Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM)
- NewLake Capital Partners, Inc. (OTC: NLCP)
WM Technology, Inc.
WM Technology, Inc. operates Weedmaps, a leading online marketplace for cannabis products and dispensaries. Weedmaps connects consumers to dispensaries, delivery services, and brands. The platform is widely used in the United States, particularly in California, which remains the largest cannabis market. Weedmaps partners with over 18,000 businesses, including dispensaries and cannabis delivery services. This broad network strengthens its market position. Weedmaps provides a robust platform for advertising and consumer engagement, making it indispensable to many cannabis businesses.
In its most recent earnings report, WM Technology demonstrated strong revenue growth. The company posted $50.3 million in revenue for the last quarter, marking an 8% increase compared to the previous quarter. Its active client base also expanded, with more dispensaries using its advertising solutions. However, the company reported a net loss of $12 million, primarily due to increased operational costs. Despite this, its gross margin remained strong at 73%. WM Technology continues to focus on reducing expenses while growing its customer base. Investors are optimistic about the company’s potential as cannabis legalization expands across more states.
[Read More] 3 Top Marijuana Stocks To Watch Today For Better Momentum
Hydrofarm Holdings Group, Inc.
Hydrofarm Holdings Group, Inc. is a leading supplier of hydroponics and controlled-environment agricultural equipment. The company caters primarily to cannabis cultivators in the United States. Hydrofarm’s products include lighting systems, growing media, and ventilation solutions, all critical for optimizing cannabis production. The company has a significant presence in California, where indoor cultivation is prevalent. Hydrofarm serves thousands of cannabis growers, ranging from small-craft operations to large-scale commercial facilities. With a strong distribution network, it remains a preferred partner for cannabis producers.
Hydrofarm’s latest earnings report revealed mixed results. The company generated $85.4 million in revenue for the quarter, reflecting a 5% sequential increase. However, year-over-year revenue declined by 18%, attributed to lower demand in the cannabis market. Hydrofarm’s gross margin improved slightly, reaching 17%, as the company focused on reducing costs. Operating expenses were down 12% compared to the previous year, demonstrating better cost management. Despite a net loss of $15.7 million, the company remains confident about future growth. Hydrofarm’s management cited improving market conditions and increased demand for its high-margin products.
[Read More] Top Cannabis Stocks For Investors To Know About It
NewLake Capital Partners, Inc.
NewLake Capital Partners, Inc. is a real estate investment trust (REIT) specializing in cannabis properties. The company acquires and leases industrial and retail properties to licensed cannabis operators. NewLake currently owns 32 properties across 12 states, including Illinois and Pennsylvania. These locations are strategically positioned in high-demand cannabis markets. With its focus on sale-leaseback agreements, NewLake provides operators with capital to grow their businesses. This strategy helps the company maintain long-term leases and steady cash flow.
In its latest earnings report, NewLake Capital Partners reported a total revenue of $11.2 million for the quarter. This marked a 7% increase compared to the same period last year. The company achieved a net income of $6.5 million, reflecting solid profitability. NewLake’s portfolio occupancy rate remained 100%, underscoring its strong tenant relationships. Additionally, the REIT distributed a quarterly dividend of $0.39 per share, representing an attractive yield for investors. Management emphasized plans to expand its portfolio through new acquisitions in emerging markets. This positions NewLake well for continued growth in the cannabis sector.
[Read More] Best Canadian Cannabis Stocks for Your December 2024 Watchlist
Breaking Down Last Month’s Winners in the Ancillary Cannabis Market
The ancillary cannabis sector remains an attractive investment area, offering diverse growth opportunities. WM Technology excels in digital services, connecting consumers to cannabis businesses. Hydrofarm supports cultivators with essential equipment, driving efficiency in production. NewLake Capital Partners provides critical real estate solutions, ensuring cannabis operators have the necessary infrastructure. These companies have shown resilience and growth potential, even amid challenges in the cannabis market. As the industry expands, these ancillary players are well-positioned for further success. Investors seeking exposure to cannabis without the risks of direct plant-touching operations should keep these stocks on their radar.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
