Marijuana Stocks For April 2023
After increasing to begin 2023, the cannabis sector and many top marijuana stocks as a whole hit fresh lows in March. Due to issues with the supply chain, business consolidation, stringent laws, and inflationary pressures, the marijuana sector is experiencing financial challenges. The viability of cannabis enterprises in 2023 was seriously threatened by rising pricing and supply chain issues in 2022.
One strategy to benefit from the downward trend in the market is to make short-term investments in cannabis stocks. In general, cannabis-related stocks’ are well-known high daily and monthly price volatility may present opportunities. There are some signs that the cannabis industry may continue to grow in 2023 based on current patterns and market conditions.
The increasing legalization of cannabis in the US is one reason that might encourage growth. As of February 2023, 19 states and 38 states, respectively, had legalized the use of cannabis for recreational purposes. Also, some states are considering legalization policies, which would increase the market for cannabis-related products. Let’s look at 3 top marijuana stocks that have held up the best in the last three years and could suit long-term and short-term traders.
[Read More] Best Cannabis Stocks To Buy Long Term? 3 REITs To Watch In April
Top Marijuana Stocks To Watch To Start April
- Green Thumb Industries Inc. (OTC: GTBIF)
- GrowGeneration Corp. (NASDAQ: GRWG)
- High Tide Inc. (NASDAQ: HITI)
Green Thumb Industries Inc.
Green Thumb Industries Inc. is a key player in the United States cannabis consumer packaged goods (CPG) sector. Currently, Green Thumb runs 77 locations throughout 15 states. With more on the coming, GTI will soon have 111 retail licenses. In 2021, GTI will open a Cookies on the Las Vegas Strip in accordance with the terms of the first agreement with the privately held Cookies Brand. The launch of Green Thumb’s marijuana business in Virginia has been announced following the company’s successful acquisition of Dharma Pharmaceuticals. Via the acquisition of Leafline Industries, the company entered the Minnesota market. In April, the company revealed its 77th Rise site.
Green Thumb Latest Financial Results
At the end of February, Green Thumb revealed its financial results for the fourth quarter and the entire 2022 year. The total revenue for the fourth quarter of 2022 was $259.3 million, an increase of 6.4% over the $243.6 million from the fourth quarter of 2021. The overall income for the entire year of 2022 climbed by 13.9% to $1.0 billion. Revenue from acquisitions made in 2021 and the legalization of adult-use sales in New Jersey, which took effect on April 21, 2022, were the key drivers of the revenue growth in the fourth quarter. The fourth quarter of 2021 saw a total retail revenue increase of 14.2%, and the entire year of 2022 saw a 24.1% increase.
The gross profit for the fourth quarter of 2022 was $124.0 million, or 47.8% of revenue, compared to the fourth quarter of 2021, when it was $128.6 million, or 52.8% of revenue. Compared to $491.9 million, or 55.1% in 2021, the gross margin for the entire year was $504.0 million, or 49.5% of revenue. The company’s fourth quarter 2022 net loss was $51.2 million, or ($0.22) per basic and diluted share, as opposed to the preceding year’s fourth quarter net gain of $22.8 million, or $0.10 per basic and diluted share. Net income for the whole of 2022 was $12.0 million, or $0.05 per basic and diluted share. The company announced it would release its first quarter 2023 results on May 3rd after the market close.
GTBIF Stock Performance
On March 31st, GTBIF shares finished at $7.68, down 7.42% in the trading month. Currently, the stock has a 52-week price range of $7.40-$19.51 and is down 11.07% year to date. According to analysts at CNN Business, GTBIF stock has a 12-month average price target of $15.44 per share. In this case, this would represent an increase of 100.91% from its last trading of $7.68.
[Read More] Are Marijuana Stocks A Buy In April? 3 Ancillary Cannabis Stocks To Watch
GrowGeneration Corp.
GrowGeneration Inc. is renowned for operating and supplying hydroponic and organic growing facilities in the US. The company offers a variety of hydroponic, organic, and lighting alternatives to cannabis growers. GrowGen currently owns and operates 60 organic gardening enterprises across the US. Upkeep of the GrowGeneration.com website has always been one of our top priorities. The website has evolved into a one-stop e-commerce destination with over 10,000 products, spanning from nutrition to lighting technology. During the next five years, the company plans to add more than 100 more locations in order to expand across the nation. In the third quarter of 2021, the company will construct the largest hydroponic garden facility in Los Angeles County.
The business reported its 2022 fourth quarter and full-year results on March 15. Significantly, same-store sales fell by 51.9% in the fourth quarter, and net revenues, which came in at $54.5 million, fell by more than 40%. Moreover, the gross profit fell from $23.1 million, or 25.5% of net revenues, to $9.6 million, or 17.6% of net revenues. Compared to Q4 2021, when GrowGen had a net loss of $4.1 million, or $(0.07) per diluted share, Q4 2022 had a net loss of $15.0 million, or $(0.25) per diluted share. The corporation had earlier specified a target range of $278.2 million for net revenue; however, actual net revenue for 2022 fell by about 34.2%.
GrowGen anticipated net sales in the $250 million to $270 million range for its 2023 estimate. Moreover, Adjusted EBITDA for the entire year of 2023 turned a $1 million profit from a $4 million loss. Net revenues for the first quarter of 2023 will be between $55 and $57 million, with an adjusted EBITDA loss of $2 to $4 million.
GRWG Stock Performance
On March 31st, the shares of GRWG finished at $3.42, down 19.24% in the last month of trading. GRWG stock is down 12.73% year to date, with a 52-week price range of $2.92-$9.87. According to CNN Business analysts, GRWG stock has a 12-month median price target of $4.25 per share. This would forecast a 24.45 percent increase over the last transaction price of $3.42.
[Read More] 3 Marijuana Stocks To Watch Before The Close
High Tide Inc.
High Tide Inc. is a cannabis dispensary making and distributing cannabis-related accessories. In addition to a well-known Canadian cannabis brand, High Tide’s portfolio includes a reputable international manufacturer and distributor of cutting-edge smoking accessories. The company’s original goal was to dominate the online accessory supply industry. The High Tide brand is presently available at 127 retailers across Canada. Blessed CBD’s primary market is the UK, and High Tide acquired the business in October 2021. With the opening of its 66th retail cannabis store, the firm increased its market share and beat all competitors to take the top spot in Alberta’s market. According to High Tide, the acquisition of NuLeaf Naturals was the biggest one the business has ever made.
High Tide Latest Financial Results
High Tide presented audited financial results for 2022 in January with a record fourth-quarter revenue of $108.2 million and a record-breaking $5.0 million in Adjusted EBITDA. For the fiscal year that concluded on October 31, 2022, revenue increased by 97% to $356.9 million, and in the fourth quarter, it increased by 14% sequentially to $108.2 million. In order to better profit from the prospective legalization of cannabis for adult use in Germany, the company has also inked a letter of intent (LOI) with the Berlin-based health and life science company Sanity Group. With 151 locations and more than 950,000 Cabana Club members, the company is currently Canada’s largest non-franchised store, making it the country’s biggest brick-and-mortar cannabis loyalty program.
High Tide reported in March that it had been given first place in the retail area and had been ranked 31st overall out of 500 companies on the Financial Times list of America’s Fastest Growing Companies for 2023. The company also disclosed that between March 24 and March 29, a total of 258,921 common shares were purchased on the open market by a group of officers, directors, and consultants, under the direction of the president and chief executive officer of the company, at an average cost of $1.59 per share. Some executives, directors, and consultants’ purchases of Common Shares demonstrate their belief in the stock’s intrinsic value and the Company’s prospects for both short- and long-term growth.
HITI Stock Performance
The shares of HITI finished at $1.365 on March 31st, up 22.97% in the last five days of trading. The stock is currently trading in a 52-week price range of $1.0340 to $4.78, down 11.36% year to date. HITI stock has an average price target of $7.39 per share, according to Tip Ranks analysts. In this example, the upside would be 441.39% over the current market price of $1.365.
Top Pot Stocks For April Trading
In general, given the market’s current volatility, investors may find it challenging to make long-term investments. Cannabis stocks may be a superior short-term investment due to their high level of market volatility. It is believed that cannabis stocks have a higher risk-to-reward ratio. Before investing, you should do your research on the company. The leading companies in a given industry may be mentioned in press releases and financial reports from a corporation. Your trading results could be enhanced by using technical indicators and understanding more about chart patterns. The above stocks are the ones to watch right now if you want to invest in top marijuana stocks for April 2023.