Top Ancillary Cannabis Stocks To Buy? 2 With Double Digit Gains Last Week
Are These Ancillary Pot Stocks Going To Continue This Uptrend Next Week?
Best Marijuana Stocks To Watch Right Now
Are the best marijuana stocks in 2022 a good investment? The top cannabis stocks to buy in have gained momentum in July and August, as the markets enter a crucial week. The ancillary marijuana stock market is one sector that has experienced sharp drops to start the year. Companies that support the cannabis industry without directly working with the plant are known as ancillary cannabis companies. Generally speaking, a large variety of companies support the cannabis market.
Over the first half of 2022, the value of a few stocks with Nasdaq listings that are tied to cannabis fell precipitously. As a result, investors can currently purchase numerous of these ancillary marijuana businesses for a lot less money. Some of these stocks might provide investors with a place to start when making long-term cannabis investments or a chance to profit on current market swings. The stock market, in the opinion of many analysts, has finally struck its bottom and will soon begin to climb once more. You may add these two marijuana stocks to your watchlist. They are the two best-performing ones for August.
Best Ancillary Marijuana Stocks For 3rd Week In August
Hydrofarm Holdings Group, Inc.
Hydrofarm Holdings Group, Inc. is a well-known reseller of hydroponic and controlled-environment agriculture supplies and instruments. The company generally provides a wide range of cannabis-growing products. In general, it produces a variety of products, such as high-intensity grow lights, temperature control systems, and growing materials. Hydrofarm declared on November 1st that it had successfully purchased Innovative Growers Equipment, Inc., a number of innovative goods, and a clever brand. The business teamed up with AXEON Water Technology in January to offer cutting-edge reverse osmosis water filtration technology and solutions.
On August 9, the company released its second quarter 2022 results, showing a decline in net revenues to $97.5 million from $133.8 million. The gross profit decreased from $29.6 million to $7.3 million as well. After adjustments, gross profit increased to $30.2 million from $9.1 million. Hydrofarm saw a net loss of $203.3 million, or a negative $4.53 per diluted share, as opposed to its net gain of $2.3 million, or $0.05 per diluted share. As a consequence, a net loss for the second quarter of 2022 included an inventory reserve of $10.2 million and a non-cash charge for goodwill impairment totaling $189.6 million. Net revenues are anticipated to range between $330 million and $347 million for the whole year, with adjusted EBITDA between $(25) million and $(16) million.
HYFM Stock Performace
HYFM Stock closed on August 12th at $3.85 up 40.51% in the past five trading days. The stock has a 52-week price range of $2.27-$59.631 and is down 86.39% year to date. According to analysts at CNN Business HYFM stock has a 12-month average price target of $5.88 per share. In this case, this would be an increase of 52.80% from its last trading level of $3.85.
The US-based company GrowGeneration Corp. is well-known for running and offering hydroponic and organic growing facilities. For cannabis cultivators, the company offers a variety of organic, lighting, and hydroponic options. In the US, GrowGen now owns and manages 62 organic gardening businesses. Since GrowGeneration.com launched, the business has concentrated on boosting its online presence. The website has evolved into a one-stop e-commerce destination with over 10,000 goods, spanning from nutrition to lighting technology. Over the next five years, the business intends to open more than 100 outlets around the US. During the third quarter of 2021, the company constructed the largest hydroponic garden facility in Los Angeles County.
On August 4, GrowGen made its results for the second quarter of 2022 public. Due to a decline in industry demand, net sales fell by 44 percent, to $71.1 million, over this period. During the quarter, comparable store sales dropped by 56.9%. In contrast to the previous year’s net gain of $6.7 million, the firm incurred a net loss of $136.4 million, including a $127.8 million impairment charge for goodwill and other intangibles. The company’s decision to lower its revenue forecast for 2022 from a range of $340 to $400 million to $250 to $275 million is noteworthy. In May, GrowGeneration unveiled Drip Hydro, a range of liquid fertilizer blends designed for industrial planters.
GRWG Stock Performace
On August 12th, the shares of GRWG finished at $5.94, up 23.49% in the last five days of trading. GRWG stock is down 54.48% year to date, with a 52-week price range of $3.42-$32.97. According to CNN Business analysts, GRWG stock has a 12-month median price target of $5.00 per share. This would forecast a 15.68 percent decrease over the last transaction price of $5.94.
[Read More] Top Marijuana Stocks On The Move This Week
Investing In Pot Stocks During This August Uptrend
The top cannabis stocks reached new lows throughout last month’s trading sessions; when they start to recover, investors could find value in the stocks. You may determine whether an asset is appropriate for your trading strategy and portfolio by looking at a company’s financial records and press announcements. Making better trading decisions can be aided by an understanding of technical indicators and chart patterns. For active traders in August, the current market volatility in cannabis may offer the opportunity for short-term gains.