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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.

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This story originally appeared on Zacks

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%.

- Zacks

Share Price Performance

Over the past year, GrowGeneration has gained 34.1% compared with the industry’s rally of 58%.

 

Zacks Investment ResearchImage 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.



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