GrowGeneration (GRWG) Inks Distribution Agreement for DYNOMYCO
GrowGeneration (GRWG) agreement with Groundwork BioAg will enable it to offer the latter???s mycorrhizal inoculant DYNOMYCO, which has exhibited strong efficacy in cannabis.
GrowGeneration Corp. GRWG recently inked a distribution agreement with Groundwork BioAg to offer DYNOMYCO at its stores across the United States as well as online. Notably, DYNOMYCO is Groundwork BioAg’s mycorrhizal inoculant product specifically formulated for cannabis.
Focusing on two of the rapid growing segments in agriculture — cannabis and biologicals, the agreement combines GrowGeneration's commercial reach and marketing expertise with Groundwork BioAg's innovative and highly-effective mycorrhizal inoculants. DYNOMYCO is highly-concentrated and formulated for convenient application and efficacy on cannabis plants. It is suitable for individual growers and large commercial farms alike. Developed following over 30 years of research, the product exhibited strong efficacy in cannabis, with yield increases of 10-45% and higher cannabinoid content.
DYNOMYCO lowers dependency on phosphorus fertilizer, improves nutrient uptake, and reduces various types of stress, such as transplantation stress. Given its several benefits, DYNOMYCO continues to gain tremendous momentum among cannabis growers. Starting this month, growers will be able to purchase DYNOMYCO directly from GrowGeneration's 62 retail hydroponic and organic garden centers or on GrowGeneration's online superstore.
This agreement is in sync with GrowGeneration’s strategy of product portfolio expansion, a key component of its long-term revenue generation plan. The company continues to aggressively expand the number of its retail garden centers throughout North America. It has been building online sales, with visitors to its website trending more than 150,000 per month. The company’s continued focus on rapid, strategic growth in key markets both organically and through acquisitions, have been driving revenues (online, commercial and retail) and will continue to do so in the near future.
The company generated $216 million of revenues in the first half of 2021, which was even higher than $193 million of revenues reported in full year 2020. The company’s revenue guidance for 2021 is anticipated to be $455-$475 million. The mid-point of the range indicates a surge of 141%.
Share Price Performance
Over the past year, GrowGeneration has gained 34.1% compared with the industry’s rally of 58%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
GrowGeneration currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the basic materials space include Nucor Corporation NUE, Methanex Corporation MEOH and The Chemours Company CC. While Nucor and Methanex sport a Zacks Rank #1 (Strong Buy), Chemours carries a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Nucor has an estimated earnings growth rate of 537.4 % for the ongoing year. So far this year, the company’s shares have appreciated 102.5%.
Methanex has a projected earnings growth rate of 409.3 % for 2021. The company’s shares have gained 81% so far this year.
Chemours has an estimated earnings growth rate of 86.4% for the current year. The company’s shares have increased 23.7% year to date.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GrowGeneration Corp. (GRWG): Free Stock Analysis Report
Nucor Corporation (NUE): Free Stock Analysis Report
Methanex Corporation (MEOH): Free Stock Analysis Report
The Chemours Company (CC): Free Stock Analysis Report
To read this article on Zacks.com click here.
Zacks Investment Research