Can Cannabis Stocks Start Seeing Profits in 2022?
As Russia’s invasion of Ukraine shatters overall markets, are you looking for marijuana stocks to buy? With earnings reported for most cannabis companies in March, investors may begin to see cannabis stocks trading on fundamentals rather than federal cannabis reform. Top marijuana stocks have seen the upside since the 2020 presidential election due to the belief that the US will federally legalize cannabis. Because that failed to happen, the cannabis sector spent much of 2021 falling from highs in February 2021.
Marijuanastocks.com – MarijuanaStocks
Look a year later and top pot stocks are nearing their lowest prices in a 52-week period. Most cannabis stocks set new lows in January with the start of 2022. This can be an opportunity to find the top cannabis stocks to invest in at lower price points. One question investors are asking right now is whether the market will continue to fall? Many analysts have predicted a bear market and a possible downturn this year, and possibly more downsides.
In fact, there could be more pressure this quarter with the Fed announcing a rate hike in March. As it stands the cannabis market has several potential catalysts on the horizon this year. Another attempt to pass Safe Banking has already been expressed in February. In addition, Senate Majority Leader Chuck Schumer has announced that he will introduce his federal marijuana legalization bill in April.
Investing in the Cannabis Industry and Understanding Pot Stocks
Over the next five years, analysts predict the cannabis industry will more than double in size. This could mean that the best-positioned cannabis companies could experience significant revenue growth and continue to expand. There are a few important details to consider before investing in pot stocks. Marijuana stocks for a top are known to have significant volatility in the market. This makes it difficult for long-term investors to establish positions. One way cannabis investors take advantage of price volatility in the market is by trading around a key position. It is for the intel investor to establish a long-term position in the cannabis stock and then use day trading and swing trading techniques to take advantage of the short-term volatility.
[Read More] Best US Marijuana Stocks to Watch Right Now
Before investing in the top marijuana stocks, it’s important to do your research on a company. In general, looking at a company’s financial position and press releases can help you find the best performing companies to invest in. Additionally, observing how a stock behaves in the market can allow you to set your own trends and create the best entry point for yourself. Location. As the market continues to be heavily influenced by current world events, let’s look at the 3 top marijuana stocks to watch before earnings.
Top Marijuana Stocks Reporting Earnings in March 2022
- Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)
- Green Thumb Industries Inc. (OTC: GTBIF)
- Grogeneration Corp. (NASDAQ:GRWG)
Hydrofarm Holdings Group, Inc.
Hydrofarm Holdings Group, Inc. Renowned Hydroponics and Controlled-Environment Agriculture Supplies and Equipment distributor and manufacturer. In general, the company sells a diverse range of cannabis growing equipment. The company’s products include high-intensity grow lights, temperature control systems, and growth materials, to name a few. Apart from a diverse selection of unique and imaginative branded items of its kind. The company said on November 1 that it had acquired Innovative Growers Equipment, Inc. acquisition has been finalized. The company will deliver its fourth quarter and full year 2021 financials after the market closes on March 1.
Hydrofarm reported profitability for the third quarter of 2021 in November, with net sales of $123.8 million, up 28.1 percent year-on-year. The corporation’s gross profit increased to $30 million, or 24.2 percent of net sales. As a result, the company’s adjusted EBITDA increased 116.7 percent year over year to $16.1 million. The company put its previous net sales forecast for 2021 at $470-$490 million. According to the company, Aurora Innovation and Greenstar Plant Products, Inc. was also purchased. Hydrofarm’s ongoing effort to acquire branded product manufacturers across key CEA categories is reflected in this transaction. In January, the company and AXEON Water Technologies formed a collaboration to offer reverse osmosis water purifying technology and solutions.
HYFM stock closed up 8.44% on February 25 at $20.04 over the past five trading days. The stock’s 52-week price range is $16.74-$73.22 and is down 58.52% over the past six months. HYFM stock has a 12-month average price target of $38 per share, according to analysts at CNN Business. In this case, it would be an increase of 89.53 percent from its previous trading level of $20.05.
[Read More] Best Marijuana Stocks to Watch? 3 for your investment portfolio
Green Thumb Industries Inc.
Green Thumb Industries Inc. is a major player in the cannabis CPG market in the United States. Currently, GTI now has 75 sites in 15 states, including one in New Jersey. GTI has 111 retail licenses and is looking to move forward. As part of a one-of-a-kind agreement with a privately held cookies brand, GTI opened a cookies on the Las Vegas Strip in 2021. After completing the acquisition of Dharma Pharmaceuticals, Green Thumb has announced its entry into the Virginia cannabis market. , Leafline Industries was acquired by the company, giving them access to the Minnesota market.
Green Thumb reported revenue of $233.7 million in November for the third quarter of 2021, growing 48.7% year over year. The company’s GAAP net income of $20.2 million, or $0.08 per diluted share, improved for the sixth consecutive quarter. In addition, adjusted operating EBITDA increased to $81.2 million, representing 34.7 percent of total revenue. Green Thumb has $285.8 million in cash at the end of the third quarter. Foot traffic increased in Green Thumb’s 68 dispensaries as the business’s products became more widely available, allowing the company to grow. Before the market opens on March 1, the company will announce its fourth quarter and full-year 2021 earnings.
On February 25, GTBIF shares ended at $18.99, down 10.72 percent over the past five trading days. Currently, the stock has a 52-week price range of $16.66-$37.37 and is down 36.83% over the past six months.
[Read More] 3 Marijuana Stocks to Watch for in Late February
Grogeneration Corp. is a well-known retail hydroponic and organic gardening business owner and operator in the United States. Organics, lighting and hydroponic equipment are just a few of the items the company sells to cannabis growers. Grogen now has 63 biological park centres. Since the launch of Grogeneration.com, the company has focused on its digital presence. The website has grown into a one-stop e-commerce destination, with over 10,000 items spanning from nutrition to lighting technology. The company intends to establish more than 100 facilities across the United States during the next five years. During the third quarter, the company announced the opening of the largest hydroponic garden facility in Los Angeles County.
Grozen released its fourth-quarter and full-year sales estimates on January 13, forecasting record revenue in 2021. Overall, total revenue for the year was $420-$422 million, an increase of 118 percent over the prior year. In addition, same-store sales increased by $24.4 in 2021. The company will release its fourth quarter and full year financials after the close on March 1.
On February 25, GRWG shares ended at $8.37, up 9.41 percent over the previous month. GRWG stock is down 73.58 percent over the past six months, with a 52-week price range of $6.74-$59.32. According to experts at CNN Business, GRWG stock has a 12-month average price target of $19 per share. This would project an increase of 127.54 percent over the previous transaction value of $8.37.