US Marijuana Stocks on the Rise in September 2023
As September progresses, the cannabis industry in the United States is seeing a stunning rebound, with prominent marijuana stocks attracting significant investment interest. This fresh interest is partly due to the growing momentum behind cannabis legalization attempts nationwide, as well as the increasing acceptance of marijuana as a viable financial avenue. In this article, we’ll look at some of the prominent US marijuana stocks positioned for growth in September 2023 and the current rise that has sparked the market’s interest.
The cannabis industry in the United States has experienced a spectacular boom thanks to positive legislative developments and altering public views toward the plant. With several states recently legalizing medical and recreational marijuana, investor interest in the business has increased. As a result, many of the best marijuana stocks in the United States have seen significant gains in recent months. This upward trend indicates the rising assumption that cannabis is an industry with significant development potential, and astute investors are now positioning themselves to capitalize on the green rush.
To navigate the volatile world of US marijuana equities, traders must use a combination of technical analysis and strong risk management tactics. Based on previous price patterns and market emotion, technical analysis assists traders in identifying entry and exit positions. However, given the volatility of the cannabis market, adequate risk management tactics are essential for both short-term and long-term traders.
Effective risk management can defend against unexpected downturns and act as a safety net during high uncertainty. Whether you’re a day trader looking for quick profits or a long-term investor looking to capitalize on the cannabis industry’s long-term potential, understanding market dynamics and employing prudent risk management measures will be critical to success in the US marijuana stock market in September 2023.
Investor’s Guide to September 2023: Top US Marijuana Stocks to Watch
- Cresco Labs Inc. (OTC: CRLBF)
- Ascend Wellness Holdings, Inc. (OTC: AAWH)
- Verano Holdings Corp. (OTC: VRNOF)
Cresco Labs Inc.
Cresco Laboratories is an American cannabis vertically integrated company. The corporation is currently setting the benchmark in the country for producing branded cannabis products. Across 11 states, the corporation operates 68 retail locations and 20 production facilities. The company opened sites in Palm Harbor and Lake Worth in March, increasing the total number of dispensaries in Florida to 28. On July 31st, the company announced the termination of its $2 billion merger with Columbia Care. In addition, the companies canceled an arrangement with hip-hop mogul Sean “Diddy” Combs to purchase some divested operations in New York, Massachusetts, and Illinois for up to $185 million.
Second Quarter 2023 Financial Highlights
- Second quarter revenue of $198 million, up 2% sequentially, driven by retail growth of 4% and flat wholesale revenue.
- Gross profit of $87 million, 44% of revenue.
- Adjusted gross profit of $93 million and Adjusted gross margin of 47%, up 100 bps from the first quarter.
- Adjusted SG&A1 reduction of $7 million sequentially.
- Adjusted EBITDA1 of $40 million, up 38% sequentially as margin improved 540 bps to 20%.
- Generated positive operating cash flow of $18 million, including $14 million of one-time cash charges related to facility closures, severance payments, and M&A-related fees.
- Second quarter net loss of $43 million, which includes $22 million of impairment charges.
CRLBF Stock Performance
CRLBF shares finished on September 8th at $2.48, up 49.40% in the last week of trading. The stock is presently trading in a 52-week price range of $1.00-$4.20, showing a 37.78% increase year to date. According to analysts at CNN Business, CRLBF stock has a 12-month median price target of $2.38 per share. In this case, this represents a decline of 3.88% from its last trading price of $2.48.
[Read More] Top Ancillary Cannabis Stocks for September 2023
Ascend Wellness Holdings, Inc.
AWH facilities exist in Massachusetts, New Jersey, Ohio, Illinois, Michigan, and Michigan. AWH’s most important commercial activities include owning and operating facilities that produce well-known strains and having a diverse product line. The company typically manufactures and distributes its products under the brand name Ozone. Candy, concentrates, pre-rolls, flowers, and vape pens are cannabis-related things at the shop. AWH has 31 retail locations and sells items to legal marijuana businesses. The purchase price of MedMen NY Inc. will climb, as agreed upon between Ascend Wellness and MedMen Enterprises Inc.
Q2 2023 Financial Highlights
- Gross revenue increased 28.4% year-over-year and 7.0% quarter-over-quarter to $151.0 million.
- Net revenue, which excludes intercompany sales of wholesale products, increased 26.1% year-over-year and 7.7% quarter-over-quarter to $123.0 million.
- Retail revenue increased 18.9% year-over-year and 8.6% quarter-over-quarter to $89.9 million.
- Gross wholesale revenue increased 45.3% year-over-year and 4.7% quarter-over-quarter to $61.2 million. Wholesale revenue, net of intercompany sales, increased 51.0% year-over-year and 5.4% quarter-over-quarter to $33.1 million.
- Net income of $0.8 million during the quarter represented an improvement compared to a net loss of $21.2 million in Q2 2022 and $18.5 million in Q1 2023.
- Adjusted EBITDA1 was $21.3 million, representing a 17.3% margin. Adjusted EBITDA increased 2% and margins declined 409 basis points year-over-year. Margins declined 308 basis points quarter-over-quarter.
- As of June 30, 2023, cash and cash equivalents were $68.0 million and net debt2 was $241.8 million.
- Generated $25.4 million of cash flows from operations, representing the second quarter in a row of positive operating cash flow. This included a benefit from the recognition of a $22.8 million employee retention tax credit (“ERTC”), of which $17.5 million was collected and then returned to a lender as debt repayment of an advance previously received. Excluding this inflow, cash flows from operations would have been nearly $8 million.
AAWH Stock Performance
AAWH stock closed on September 8th at $1.10, up 71.03% in the past month of trading. The stock has a price range of $0.46.4-$2.43, down 3.48% year to date. According to analysts at CNN Business, AAWH stock has a 12-month median price forecast of $3.93 per share. In this case, it would represent an increase of 253.60% from its last trading price of $1.10.
Verano Holdings Corp.
Verano Holdings Corp., established in the United States, is a multi-state, vertically integrated cannabis firm. Under a number of brand names, the company distributes high-end cannabis products. Verano has 14 manufacturing and processing units, 129 dispensaries, and 13 states. Regardless, the company has 63 sites in Florida and is well-known throughout the state. Two of the company’s retail brands, Zen LeafTM and MÜVTM, operate dispensaries catering to medicinal and recreational customers. On June 1st, the firm established 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 $5.09 on September 8th, up 73.70% in the past month of trading. The stock has a 52-week price range of $2.58-$6.45 and is up 63.14% year to date. According to analysts at Tip Ranks, VRNOF stock has a 12-month average price target of $10.16 per share. This would represent an increase of 99.61% from its last trading price of $5.09.
US Marijuana Stocks and Risk Management in September 2023
For those considering entry into the cannabis market, it’s essential to stay informed about the evolving regulatory landscape and the unique dynamics of the industry. Moreover, whether your trading horizon is short-term or long-term, discipline and a well-thought-out risk management plan are your allies in navigating the often volatile cannabis market. By blending market analysis with prudent risk mitigation, investors can better position themselves to ride the green wave and potentially reap the rewards that September 2023 and beyond have in store for the US marijuana stock market.
For those considering entry into the cannabis market, it’s essential to stay informed about the evolving regulatory landscape and the unique dynamics of the industry. Moreover, whether your trading horizon is short-term or long-term, discipline and a well-thought-out risk management plan are your allies in navigating the often volatile cannabis market. In addition, By blending market analysis with prudent risk mitigation, investors can better position themselves to ride the green wave and potentially reap the rewards that September 2023 and beyond have in store for the US marijuana stock market.
As the US cannabis industry continues to mature and expand, it will surely provide ample opportunities for those willing to embrace the challenges and uncertainties of investing in a burgeoning sector. While September 2023 has presented us with a promising landscape, the long-term sustainability of these trends will depend on various factors, including legislative developments and market dynamics. Whether you’re a seasoned trader or a newcomer eager to explore the world of cannabis investments, staying informed and adaptable will be key to making the most of this exciting and ever-evolving market.
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