US Cannabis Investments: Spotlight on Top Stocks and Key Catalysts for 2023
In recent years, the cannabis sector and top marijuana stocks in the United States have grown exponentially, generating significant interest from investors looking for lucrative opportunities. As we enter July 2023, the sector is growing rapidly, propelled by shifting legislation, public perception, and expanding market demand.
The US market is poised for exceptional growth, with more states legalizing medical and recreational cannabis. In addition, analysts believe that the legal cannabis market in the United States will be worth $80 billion by 2025, giving an exceptional investment opportunity for those who choose their cannabis companies carefully.
Given the large number of cannabis companies, identifying the best cannabis stocks might be complicated. Several major companies, however, have emerged as frontrunners, with good financial performance, strong market positioning, and robust growth strategies. These companies are well-positioned to benefit from the changing legal landscape and capture opportunities in domestic and foreign markets.
Understanding the possible catalysts that can propel cannabis companies to new heights is critical for investors seeking to make good selections. Catalysts like legislative developments, federal legalization attempts, collaborations, mergers and acquisitions, and breakthroughs in cannabis research and innovation can significantly impact the industry and individual stock performance. This article will delve into the top US cannabis stocks and explore potential catalysts that could shape their trajectory in 2023.
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Top Performing US Marijuana Stocks in June 2023: Where to Invest?
- Green Thumb Industries Inc. (OTC: GTBIF)
- Curaleaf Holdings, Inc. (OTC: CURLF)
- Ayr Wellness Inc. (OTC: AYRWF)
Green Thumb Industries Inc.
Green Thumb Industries Inc. is a significant player in the US cannabis consumer packaged goods (CPG) sector. There are presently 83 Green Thumb locations spread throughout 14 states. GTI will have 111 retail licenses soon, with more on the way. GTI will open a Cookies on the Las Vegas Strip in 2021, in accordance with the terms of the first agreement with the privately held Cookies Brand. Green Thumb has announced the launch of its marijuana company in Virginia following the successful acquisition of Dharma Pharmaceuticals. The company expanded into Minnesota by acquiring Leafline Industries. On July 1st, the company launched adult-use cannabis sales at four Maryland locations.
Green Thumb’s revenue in the first quarter of 2023 climbed 2.4% year on year to $248.50 million in May. Overall retail revenue increased by 9.4% as compared to the first quarter of 2022. First-quarter 2023 comparable sales (stores open at least 12 months) increased 6.3% over the prior year based on 73 locations. Consumer packaged goods gross sales increased 4.3% from the first quarter of 2022. Furthermore, gross profit for the first quarter of 2023 was $124.7 million, or 50.2% of revenue, compared to $122.9 million, or 50.7%, for the same period last year. The main reason for the decline in gross margin was price compression.
GTBIF Stock Performance
On June 30th, GTBIF shares finished at $7.62, down 1.30% in the trading month. Currently, the stock has a 52-week price range of $6.60-$16.50 and is down 11.81% year to date. According to analysts at CNN Business, GTBIF stock has a 12-month average price target of $16.19 per share. In this case, this would represent an increase of 112.48% from its last trading price of $7.62.
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Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc. is a leading international provider of cannabis consumer products with the mission of improving people’s lives by cultivating, sharing, and celebrating the plant’s power. The Company and its brands, including Curaleaf, Select, and Grassroots, deliver industry-leading service, product selection, and accessibility throughout the medicinal and adult use sectors as a high-growth cannabis company known for quality, knowledge, and dependability. Curaleaf now operates in 19 states, has 152 dispensaries, and employs almost 5,500 team members in the United States. Curaleaf International is Europe’s largest vertically integrated cannabis company, with a unique supply and distribution network spanning the entire European market, combining cutting-edge cultivation, extraction, and production with pioneering science and research.
Overall, the company reported $336.5 million in net revenue in the first quarter of 2023, a 14% increase above Q1 2022 revenue of $296 million, excluding stopped operations. Furthermore, a gross profit of $160.8 million with a gross margin of 48% and an Adjusted gross profit net of add-backs of $162 million with an adjusted gross margin of 48%. Including ceased operations, the business lost $54.4 million, for a net loss of $0.07 per share. Curaleaf Holdings, Inc.(1) reported a $46 million adjusted net loss from continuing operations or a $0.05 adjusted net loss per share.
CURLF Stock Performance
On June 30th, CURLF shares closed at $3.092, up 6.62% in the past month of trading. The stock is currently trading in a 52-week range of $2.19-$7.90 and is down 28.05% year to date. According to analysts at CNN Business, CURLF stock has a 12-month average price target of $5.38 per share. In this case, this would represent an upside of 73.87% from its last trading price of $3.092.
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Ayr Wellness Inc.
Ayr Wellness Inc. is a well-known cannabis company in Florida. Florida is home to 60 of the company’s 70 marijuana-related businesses. To expand in Illinois, the company purchased Herbal Remedies Dispensaries, LLC. Adult marijuana use may improve its appeal in Ayr, Massachusetts-based businesses. In addition, The company has established its sixth linked dispensary in Pennsylvania. After getting regulatory approval from Arizona, Ayr planned to begin its 86,000-square-foot processing and growing facility in December. The company invested significantly in the beverage business by acquiring Levia Cannabis Infused Seltzer in 2022.
According to AYR data, revenue climbed 18% year on year to $117.7 million in the first quarter of 2023, up 3% sequentially. Furthermore, Adjusted EBITDA climbed 64% year on year to $26.3 million and 9% sequentially (GAAP loss from operations was $21.7 million, up from $21.0 million in Q1/22). Since the beginning of 2023, the firm has opened seven new locations in Florida, bringing the state’s total number of dispensaries to 60. In general, the company plans to open ten additional stores in 2023, bringing the total number of locations to 70 by the end of the year.
The Company anticipates revenue and Adjusted EBITDA will grow in line with Q1 sequential growth patterns in the second quarter. AYR further reiterates its forecast for positive operating cash flow in 2023. However, due to the timing of tax payments, operating cash flow trends will not be linear.
AYRWF Stock Performance
AYRWF stock closed on June 30th at $0.8550, down 22.27% in the last trading month. Currently, the stock has a 52-week price range of $0.5660-$5.88 and is down 28.75% year to date. According to analysts at CNN Business, AYRWF stock has a 12-month average price target of $6.35 per share. In this case, this would represent an upside of 643.21% from the last price of $0.8550.
Evaluating Growth Potential: Top US Cannabis Stocks and 2023 Catalysts
In conclusion, the US cannabis market is well-positioned for future expansion and lucrative investment prospects. The top cannabis stocks have positioned themselves as market leaders, capitalizing on the developing legal landscape by leveraging their strong financial performance and strategic positioning. These companies are well-positioned to enjoy considerable growth in the coming year thanks to potential catalysts, including regulatory developments, federal legalization efforts, and improvements in cannabis research.
As investors navigate the complexities of the cannabis market, staying informed about the latest industry trends and understanding the factors that drive stock performance is crucial. By keeping a close eye on the top US cannabis stocks and monitoring the potential catalysts, investors can make informed decisions that align with their investment goals and risk tolerance.
While the cannabis market offers intriguing potential, proceeding cautiously and undertaking complete research before investing is critical. Market volatility, regulatory uncertainty, and other risks are inherent in the sector. However, for those willing to properly evaluate the scenario and keep educated, the US cannabis industry has the potential for significant profits as it evolves and gains widespread recognition in 2023 and beyond.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
