Growing Opportunities: US Marijuana Stocks to Follow in Q4 2023
As October 2023 progresses, the marijuana stocks and the US cannabis market’s landscape will continue to captivate investors looking for expansion prospects. The marijuana industry has seen extraordinary growth in recent years due to changing public attitudes and fluctuating regulations, leading to a booming market for medical and recreational marijuana. The United States is leading this green wave thanks to its extensive network of legalized marijuana states. There is a growing consensus that the US marijuana business is primed for significant expansion, from the state of California’s thriving market to the recent addition of New York. In this article, we’ll look at a few of the best marijuana stocks in the US that long-term and short-term investors should consider. We’ll also emphasize the importance of using technical analysis to make informed decisions and the necessity of robust risk management strategies when navigating this ever-evolving market.
Investing in the US marijuana industry requires a thoughtful approach, considering long-term and short-term trading strategies. In the long run, investors may seek out well-known companies with a track record of success and a strong presence throughout many states. These businesses, also known as multi-state operators (MSOs), have the potential for rapid growth as they extend their companies and gain from cannabis’ rising popularity.
Short-Term Trading Top Cannabis Stocks
Conversely, short-term traders may concentrate on smaller, more erratic equities with significant growth potential, riding the ebbs and flows of the market and news events. Whatever the investment horizon of choice, using technical analysis is essential. Determining the best entry and exit positions includes analyzing price patterns, trends, and market indicators.
However, given the industry’s inherent volatility, risk management should be a primary focus. A defined risk-reward ratio, stop-loss orders, and diversification are essential for protecting investments in this developing industry. Investors have the chance to invest in a market with enormous potential as the US cannabis business continues to grow. Still, they must do so with prudence, strategy, and a complete understanding of the market dynamics.
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US Marijuana Market Update: Top Stocks for Q4 2023 Watchlist
- Ayr Wellness Inc. (OTC: AYRWF)
- Green Thumb Industries Inc. (OTC: GTBIF)
- Verano Holdings Corp. (OTC: VRNOF)
Ayr Wellness Inc.
Ayr Wellness Inc. is a well-known cannabis business in Florida. Florida is home to 60 of the company’s 70 marijuana-related businesses. The business bought Herbal Remedies Dispensaries, LLC, to grow in Illinois. Adult marijuana use may increase the appeal of businesses in Ayr, Massachusetts. The company has launched its sixth linked dispensary in Pennsylvania. Following Arizona’s regulatory approval, Ayr anticipated to begin its 86,000-square-foot processing and growing facility in December. The company invested significantly in the beverage business in 2022 by purchasing Levia Cannabis Infused Seltzer.
Second Quarter 2023 Highlights
- Revenue up 18% Y/Y to $116.7 Million, Excluding Discontinued Operations
- Company Delivers Record Adjusted EBITDA1 of $29.4 Million, up 78% Y/Y, 12% Sequentially, with Adjusted EBITDA Margin of 25%
- GAAP Loss from Operations Improved 81% Y/Y, 79% Sequentially to $(4.5) Million, Excluding Discontinued Operations
Outlook
The Company remains committed to its financial health and is positioning itself to achieve sustainable long-term growth and profitability across all markets of operation. AYR expects to generate revenue and Adjusted EBITDA growth in the second half of 2023 and into 2024 and to generate positive GAAP cash flow from operations for the calendar year 2023.
AYR’s expectations for future results are based on the assumptions and risks detailed in its Management’s Discussion and Analysis (“MD&A”) for the period ended June 30, 2023, as filed on SEDAR+ and with the U.S. Securities and Exchange Commission (“SEC”).
AYRWF Stock Performance
AYRWF stock closed on October 18th at $1.7393, down 42.58% in the last trading month. In this case, the stock has a 52-week price range of $0.5660-$4.41 and is up 44.92% year to date.
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Green Thumb Industries Inc.
Green Thumb Industries Inc. is a significant player in the US cannabis consumer packaged goods (CPG) sector. Currently, there are 83 Green Thumb locations spread throughout 14 states. With more on the coming, GTI will soon have 111 retail licenses. The first deal between GTI and the privately held Cookies Brand stipulates that Cookies will be opened on the Las Vegas Strip in 2021. Green Thumb has announced the launch of its marijuana business in Virginia following the successful acquisition of Dharma Pharmaceuticals. Having acquired Leafline Industries, the business has now entered Minnesota. The company started selling cannabis for adult use on July 1st in four Maryland locations.
Highlights for the second quarter and six months ended June 30, 2023
- Second quarter revenue of $252 million increased 2% sequentially; first half 2023 revenue increased 1% to $501 million year-over-year.
- GAAP net income of $13 million or $0.05 per basic and diluted share.
- Adjusted EBITDA was $76 million or 30% of revenue.
- Six months cash flow from operations of $93 million, net of $52 million of tax payments.
- Cash at quarter end totaled $149 million.
- Six RISE retail stores were opened: two in Pennsylvania; two in Virginia and one each in Minnesota and Nevada.
GTBIF Stock Performance
On October 18th, GTBIF shares finished at $9.21, down 23.11% in the last trading month. In this case, the stock has a 52-week price range of $6.42-$16.50 and is up 5.90% year to date.
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Verano Holdings Corp.
Verano Holdings Corp. is a multi-state, vertically integrated cannabis firm with headquarters in the US. The business offers a range of brand names for its high-end cannabis products. Verano has 129 dispensaries, 14 manufacturing and processing facilities, and 13 states. Despite this, the business has 63 sites in Florida and is well-known there. Two of the company’s retail brands, Zen LeafTM and MÜVTM, operate dispensaries catering to medical and recreational customers. On June 1st, the company unveiled its 68th location in Florida, in Miami Kendall.
Second Quarter 2023 Financial Highlights
- Revenue of $234 million increased 5% year-over-year and increased 3% versus the prior quarter.
- Gross profit of $115 million or 49% of revenue.
- SG&A expense of $85 million or 36% of revenue.
- Net loss of $(13) million.
- Adjusted EBITDA2 of $72 million or 31% of revenue.
- Cash flow from operations of $24 million for the quarter.
- Capital expenditures of $8 million for the quarter.
- Free Cash Flow1 of $16 million for the quarter.
VRNOF Stock Performance
VRNOF shares closed at $4.53 on October 18th, down 13.20% in the past month of trading. In this case, the stock has a 52-week price range of $2.53-$6.08 and is up 43.27% year to date.
Targeting High-Potential US Marijuana Stocks
As we move into the fourth quarter of 2023, the US marijuana market offers investors an interesting landscape. This industry presents a wide range of opportunities for both short-term traders and long-term investors due to the increasing number of states that have legalized cannabis and an expanding regulatory framework. But it’s crucial to approach this market cautiously, prepared with in-depth research, technical analysis, and an effective risk management strategy. The goal is to stay knowledgeable and adaptable whether you want to add security to your long-term portfolio with proven multi-state operators or seek the excitement of prospective high-growth opportunities.
As the US cannabis industry continues to mature, it’s essential to keep a watchful eye on these top marijuana stocks, positioning yourself to capitalize on the industry’s ongoing growth and transformation. Although investing in marijuana equities includes some risks, there are potential advantages. Investors may confidently navigate the complex world of US cannabis stocks with the appropriate combination of strategy, caution, and a watchful eye on market movements. You can make judgments that align with your investing objectives in this quickly changing industry by carefully selecting stocks for your Q4 2023 watchlist and keeping an eye on market dynamics.
MAPH Enterprises, LLC | (305) 414-0128 | 1501 Venera Ave, Coral Gables, FL 33146 | new@marijuanastocks.com
