The best cannabis stocks while marijuana stocks are down
Find them The Best Marijuana Stocks for 2022? Since the beginning of the year, cannabis stocks have continued to decline throughout January. In general, the declines in the cannabis sector are associated with delays US federal legalization of marijuana and reform. One area that has declined significantly over the past few weeks of trading is marijuana supplement stocks. Certain ancillary companies are companies that support the cannabis market without touching the actual plant.
Some of these companies provide the necessary equipment and nutrients needed to grow cannabis in the United States. In 2022, when new states legalize medicinal and recreational use, the cannabis industry in the US is expanding rapidly. As demand increases, cannabis producers need to increase production and continue cultivation. Over the next five years, the cannabis industry is forecast to more than double in size.
According to a recent report by Prohibition Partners, global cannabis sales are forecast to grow from $37.4 billion in 2021 to $102 billion in 2026. This growth gives the cannabis market future potential for investors. One area that’s well-positioned for growth is companies that supply hydroponics, lighting equipment, and plant nutrients for growing. As new states begin to establish medical and recreational markets, leading cultivation supply companies grow alongside the market.
Additional Cannabis Stocks to Watch in 2022
Before you invest supplemental cannabis stocks, it is always important to examine a company carefully. Researching a company’s finances and examining how a stock is performing in the market can help you get the biggest returns. With many analysts anticipating a volatile year in the market, pot stocks could experience significant price swings throughout the year. Because of this, establishing a good entry level is an important factor in the return on your investments.
To end the week, cannabis side stocks have traded lower so far this year. As demand for cannabis products increases in the United States, these companies are helping to produce the product consumers need. For this reason, let’s consider 2 Top ancillary marijuana stocks for your watch list in mid-January.
Top marijuana side stocks to watch in January
The Scotts Miracle-Gro Company
Scotts Miracle-Gro, one of the world’s leading marketers of consumer lawn and garden supplies, is also involved in the cannabis industry. For those unfamiliar, the Company’s wholly owned subsidiary, Hawthorne Gardening, is a leading supplier of fertilizers, lighting, and hydroponic equipment needed to grow cannabis. Scotts acquired Luxx Lighting and True Liberty Bags on January 6, expanding the Hawthorne portfolio. Hawthorne’s industry-leading lighting portfolio will be strengthened with the move. Additionally, the company’s full-year guidance remains unchanged despite a slowdown in Hawthorne sales.
Currently, Scott’s expects Hawthorne sales to slow 40% due to a cannabis slowdown and supply chain issues. Of note, Scotts provided guidance for fiscal 2022 of non-GAAP adjusted earnings per share of $8.50 to $8.90 and announced intentions for a $300 million share repurchase in fiscal 2022.
Words from the President of Hawthorne
“These strategic acquisitions reinforce our commitment to offer commercial cannabis growers in regulated markets a complete set of solutions based on knowledge and innovation.” While the cannabis market continues to face short-term challenges from overproduction over the past few months, we view the current reality as an opportunity to further differentiate ourselves from the competition and strengthen our business for long-term success.”
Chris Hagedorn, Hawthorne Area Manager
SMG stock performance
SMG stock closed at $164.92 on Jan. 13th up 9.18% over the past month. Currently, the stock has a 52-week price range of $133.36 to $254.34 and is down 8.76% over the past six months. SMG stock has a 12-month price target of $190 per share, according to analysts at CNN Business. This forecast represents a 15.17% increase from the last trade price of $164.92.
[Read More] Marijuana stocks to keep on your radar this year
Grow Generation Corporation
Grow Generation Corp. is a major owner and operator of retail hydroponic and organic nurseries in the United States. Organics, lighting, and hydroponic equipment are among the items the company supplies and distributes to cannabis growers. GrowGen now has 62 organic garden centers in 13 states, with the 11th and 12th facilities recently opening in Southern California. Since the launch of GrowGeneration.com, the company has focused on its Internet presence. The site now serves as a one-stop e-commerce store, offering over 10,000 products from nutrition to lighting. Within the next five years, the company hopes to open over 100 locations across the United States. During the third quarter, the Company announced the opening of Los Angeles County’s largest hydroponic garden facility.
On January 13thth GrowGen has provided its fourth quarter and full year sales estimate with record annual sales for 2021. In general, the company reported full-year revenue of between $420 million and $422 million, up 118% year over year. Additionally, 2021 same-store sales increased $24.4. As things stand, the company will announce further financial details in early March 2022.
Words from the CEO
“We delivered strong shareholder value in 2021 with triple-digit revenue growth despite unprecedented ongoing challenges and an uncertain operating environment. While we continue to grow our business significantly, we experienced more than expected pressure in the fourth quarter from the general slowdown in the hydroponics market. Fourth quarter sales results combined with one-time expenses will result in a loss for the quarter of between $2 million and $4 million in EBITDA on an adjusted basis. We improved our inventory position during the quarter to align inventory levels with sales activity.”
Darren Lampert, CEO of GrowGen.
GRWG stock performance
GRWG stock closed at $9.90 on Jan. 13th Dropping 10.81% for the trading day. GRWG stock has a 52-week price range of $9.821 to $67.75 and is down 78.36% over the past six months. According to analysts at CNN Business, GRWG stock has a 12-month median price prediction of $30 per share. In this case, it would represent a gain of 122.45% from the last trade price of $9.90.
[Read. More] The top marijuana stocks to watch for January
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