Ancillary Marijuana Stocks To Buy In 2021, SMG vs HYFM

2 Ancillary Marijuana Stocks To Watch This Month

This story originally appeared on MarijuanaStocks

2 Ancillary Marijuana Stocks To Watch In 2021

Many marijuana stocks are starting to see a longer sustained period of better trading. As some analysts predicted May would come with an uptick in trading. Yet they just didn’t know it would be the last week of the month. As the saying goes better late than never especially when it comes to seeing a return on one’s investment. Many shareholders and investors have been waiting to see a sustained time frame of upward trading. However, even with more cannabis stocks starting to recover the hope is there won’t be a drop in June. via MarijuanaStocks

Much of this caution in regards to another downtrend is due to the long drop in trading since back in February. Since that time marijuana stocks have been fighting to reach higher market levels. Yet due to many factors beyond just volatility, the bulk of marijuana stocks were not able to see a full recovery. Now in the last 3 months, small windows of upward trading did happen. Unfortunately, these increases in trading did not last long nor did they rise significantly. Furthermore, even when the sector was crashing cannabis companies were still putting numbers on the board.

For example over the last 3 months, companies like Trulieve Cannabis Corp. and Tilray Inc. have both expanded their operation through mergers and acquisitions. This helped grow both companies in business and presence in the cannabis industry. What makes these deals so special is it all happened as the publicly traded side of the sector was down. Overall even with the sector being down over the last 12 weeks, the industry has not slowed down. More progress and innovation is taking place right now which is set to continue in 2021 and beyond. The marijuana stocks below are 2 examples of possible buying opportunities in June.

Marijuana Stocks To Watch This Week

  1. The Scotts Miracle-Gro Company (NYSE:SMG)
  2. Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)

The Scotts Miracle-Gro Company

Now The Scotts Miracle-Gro company is not exactly a cannabis stock or marijuana company. Yet through its subsidiary Hawthorne Gardening Company, Scotts Miracle-Gro has found its way in the industry. Hawthorne Garding is a hydroponic growing company that is dedicated to servicing the legal cannabis industry.

One of the big benefits of being in the ancillary side of the cannabis niche is you can facilitate more than just the marijuana industry. Still, the main focus and business for Hawthorne is cannabis. On May 5th Scotts Miracle-Gro released its record second-quarter results. During this time Hawthorne increased its sales by 66% in Q2. This was a sign of strong growth in all product categories.

smg stock

“We also continue to exceed expectations at Hawthorne as we reported our fifth consecutive quarter of sales growth in excess of 60 percent and another month of strong results in April. Given the current momentum of this business, we feel comfortable once again increasing our sales guidance for Hawthorne to a range of 30 to 40 percent growth on a fiscal year basis.” said Jim Hagedorn, chairman, and chief executive officer.

Over the last 2-3 weeks of trading SMG stock has had trouble sustaining a rise in trading. Earlier in May SMG stock was looking like it was starting to recover but ended up dropping even more. Yet in the last week, SMG stock did show a small sign of upward momentum before dropping once again. Hopefully heading into next month better trading will take place.

[Read More] Top Marijuana Stocks To Watch In The US Cannabis Industry

Hydrofarm Holdings Group, Inc.

Hydrofarm Holdings Group, Inc. is a leading independent distributor and manufacturer of hydroponics equipment. Which provides supplies for controlled environment agriculture. In recent news, the company has released its Q1 earnings. During this time net sales increased 66.5% to $111.4 million compared to $66.9 million. As well the company also Adjusted EBITDA(1) increased to $9.9 million compared to $1.6 million. Another highlight to mention is Hydrofarm increased its gross profit by 100.8% in comparison to $11.6 million.

HYFM Stock

Bill Toler, Chairman and Chief Executive Officer of Hydrofarm, said, “We’re pleased to report strong results to start 2021, which included our third straight quarter of organic sales growth of approximately 60% or more and a new record quarter of Adjusted EBITDA at $9.9 million, as we continue to benefit from broad growth across our product lines, geographies, and brand categories. Our impressive results continue to be driven by demand for our differentiated branded product offerings aided by strong tailwinds from a large and rapidly growing controlled environmental agriculture end market.”

[Read More] Top Marijuana Stocks To Buy This Week? 2 To Watch Right Now

In recent trading HYFM stock has been slowly moving back up in the market. Even with HYFM stock dropping the last few weeks of May from the 24th to now the company is rising. Now shareholders don’t know how long this will last but hopes remain high for Hydrofarm Holdings. With the start of the new month coming up June may bring more momentum to help keep this current rise in the sector going.