These Marijuana Stocks Could Be The Ones You Need In Your Portfolio
At the moment marijuana stocks are showing some pullback. Much of this is due to current speculation in the sector. At times speculative trading can like many things be a good and bad thing. Which is mainly predicated on whether traders feel things will change for the better. So for example, if traders are optimistic about their speculation it can lead to upward trading. On the other side, negative speculation would normally lead to a decline in trading.
Still, with the current pullback, it’s a good setup for future trading. With the decline in the sector another window to find the best marijuana stocks to buy has opened. The setup is buying the dips and waiting for the House to vote on federal reform. Historically when cannabis legislation is being voted on it resonates well among most marijuana stocks. With 3 chances to see federal reform become law this year, we should be able to see more overall upward trading. However, from a fundamental standpoint, many good catalysts are not being valued as they once did.
For instance this month a good amount of cannabis companies have shown solid earnings and full-year earnings. Some have even reported record revenue with projections to generate even more time goes on. Yet this has not created the type of momentum it used to when the cannabis industry was initially getting attention. Back in 2020 and early 2021 marijuana stock investors were actively trading from a fundamental position.
Marijuana Stocks Look To Sustain Better Trading In 2022
Nevertheless, with all that has taken place from 2021 marijuana stock investors are in need of more. Specifically with ending cannabis prohibition in the United States. What federally rescheduling or legalizing cannabis would do is allow for other cannabis markets to partake in the USA cannabis industry. This can only lead to a bigger industry and potential momentum for the majority of cannabis stocks.
Marijuana Stock Investors Want To See Better Trading This Year
However, when it comes to marijuana stocks nothing is promised or how can seem. To elaborate marijuana stocks like other areas of the market are in a sector with more volatility. What this means is without warning cannabis stocks can either rise or fall. The unpredictability of how most marijuana stocks perform is variable that keeps shareholders on their feet. When investing in marijuana stocks you need to keep an eye out for any immediate changes. Especially if it’s a change that leads to seeing a return on your investment. The marijuana stocks mentioned below are several companies that could reach a better market position in the near future.
Top Marijuana Stocks For Your 2022 Watchlist
- GrowGeneration Corp. (NASDAQ:GRWG)
- Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)
- Agrify Corporation (NASDAQ:AGFY)
GrowGeneration Corp. through its subsidiaries owns and operates retail hydroponic and organic gardening stores in the United States. Earlier in March, the company released its Q4 and full 2021 financial results. At this time GrowGen generated a record full-year revenue of $422.5 million.
Also, the company saw an Adjusted EBITDA of $34.5 million in 2021. Even though the Adjusted EBITDA was a loss for the reporting quarter. Quarterly revenue increased 46% to $90.6 million in Q4. Net income for the full year was $12.8 million. This figure is in comparison to the prior year’s net income of $5.3 million.
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Hydrofarm Holdings Group, Inc.
Hydrofarm Holdings Group, Inc. together with its subsidiaries, engages in the manufacture and distribution of controlled environment agriculture equipment and supplies in the United States and Canada. The company offers agricultural lighting devices, indoor climate control equipment, hydroponics, and nutrients. Plus plant additives are used to grow, farm, and cultivate cannabis. As well as flowers, fruits, plants, vegetables, grains, and herbs in a controlled environment.
At the start of the month, the company released its 2021 fourth-quarter earnings. Some key mentions are net sales increased 26.3% to $110.4 million compared to $87.4 million. Also, gross profits increased 16.7% to $18.7 million compared to $16.0 million. The company’s Adjusted EBITDA decreased 0.7% to $4.9 million compared to $5.0 million. Other highlights consist of Hydrofarm closing on a new $125.0 million Senior Secured Term Loan Facility. In addition to completing the acquisition of Innovative Growers Equipment and related entities (“IGE”).
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Agrify Corporation develops precision hardware and software grow solutions for the indoor agriculture marketplace primarily in the United States. In recent updates, Agrify has also released its Q4 2021 earnings. During this quarter the company saw record-breaking results. Revenue was $25.3 million for the fourth quarter, an increase of 481% compared to $4.4 million for the period back in 2020.
Revenue was $59.9 million for the fiscal year, an increase of 395% versus $12.1 million for the prior-year period. Next new bookings were $377 million for the fiscal year, an increase of 919% compared to $37 million for the prior-year period. As far as operational highlights from March 23, 2022, the total qualified pipeline of opportunities is approximately $571 million.