Top US Cannabis Stocks For October 2022
Do you want to invest in October’s top marijuana stocks? According to various experts, US MSOs will be the important cannabis companies to watch in 2022. The US cannabis business has grown dramatically since the pandemic, surpassing Canadian LPs as the leading revenue producers in the industry.
US marijuana stocks have been extremely volatile in 2022. When trading in a market like this one, day traders and swing traders often profit the most. Some long-term investors also opt to use short-term trading tactics in addition to their sizeable long-term investments in the cannabis industry. As a result, they stand to benefit from daily changes in the stock’s price.
Delays in federal cannabis regulations have harmed the US marijuana industry, which is worth billions of dollars annually. By taking advantage of the sector’s revival, investors may be able to benefit from the market’s current momentum. Here are the top three marijuana stocks to watch in October.
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Best US Marijuana Stocks For October 2022
- Cresco Labs Inc. (OTC: CRLBF)
- Columbia Care Inc. (OTC: CCHWF)
- Ascend Wellness Holdings, Inc. (OTC: AAWH)
Cresco Labs Inc.
Cresco Labs, a cannabis company, was established in the US and features a vertically integrated corporate structure. Right now, the company leads the nation in the production of branded cannabis goods. According to a BDSA study, Cresco is the marijuana brand that customers in Illinois and Pennsylvania prefer the most. Cresco operates in 11 states and has 53 retail outlets, 20 manufacturing facilities, and 47 retail licenses. The Good News product line will expand, the business claims, to include fresh consumables and vape items.
On August 17th, Cresco announced second-quarter revenue of $218 million, up 4% from the same time the previous year. The company reported an Adjusted Gross Profit of $116 million, or 53% of revenue, an increase of 8% year over year, after taking acquisition-related adjustments to the cost of goods sold and other non-core items out of the equation. In the second quarter, Cresco’s adjusted EBITDA totaled $51 million, or 23% of revenue, an increase of 11% from the same period in the previous year. Thanks to $95 million in wholesale revenue, the business maintained its position as the top U.S. seller of branded cannabis products with leading share positions in the flower, concentrates, and vape categories.
In Massachusetts, Illinois, Pennsylvania, and Massachusetts again, the corporation earned the most branded shares. Same-store sales climbed 6% over the previous year even though retail revenue increased 22% to $123 million, or $2.5 million per average store operating during the quarter. Additionally, the previously announced all-stock acquisition of Columbia Care by Cresco Labs was approved by Columbia Care shareholders on July 8. To finalize the acquisition by the end of the year, the corporation is still making great efforts. Florida saw the launch of Cresco, the company’s best-selling flagship brand.
CRLBF Stock Performance
CRLBF shares finished on October 4th at $2.71, down 34.38% in the last month. The stock is presently trading in a 52-week price range of $2.39-$10.42, showing a 59.37 percent decline year to date. According to analysts at CNN Business CRLBF stock has a 12-month median price target of $7.57 per share. In this case, this represents an upside of 179.39% from its last trading price of $2.71.
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Columbia Care Inc.
Columbia Care Inc.’s footprint in the New York area will grow dramatically. The business, which is among the largest producers of cannabis on the East Coast, just acquired a 34-acre Long Island facility. Columbia Care now runs 131 locations in 18 American cities, including 99 dispensaries and 32 growing and processing facilities. The business opened a marijuana dispensary at its initial location in Missouri in October 2021. The third gLeaf dispensary to open in Virginia was just announced by the company. The largest MSO in the US, Cresco Labs Inc., acquired Columbia Care on March 23 for a $2 billion total enterprise value.
The company reported quarterly sales of $129.6 million for the second quarter of 2022 in August, an increase of 5% QoQ and 18% YoY. Additionally, overall profits increased by 17% YoY to $50.8 million. The company presently operates 84 retail locations; it’s also significant that no new ones were added in Q2 2022. For each of the following two quarters, Columbia Care anticipates continued sequential top-line growth in the mid-single digits. In addition, the company anticipates between 150 and 250 basis points quarterly growth in market level EBITDA margin over current YTD results. In July, the corporate merger between Cresco Labs and Columbia Care received approval from the British Columbia Supreme Court.
CCHWF Stock Performance
CCHWF stock closed on October 4th at $1.26 down 38.24% in the last month of trading. Currently, the stock has a 52-week range of $1.15-$4.02 down 55.95% year to date. According to analysts at Tip Ranks CCHWF stock has a 12-month average price target of $4.95 per share. In this case, this is an upside of 292.93% from its last trading price of $1.26.
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Ascend Wellness Holdings, Inc.
AWH is a cannabis business with operations in Massachusetts, New Jersey, Ohio, Illinois, Michigan, and Michigan. The fundamental business of AWH consists of owning and running facilities that create strains that have won awards and having a properly thought-out product line. Typically, the business produces and sells its products under the brand Ozone. Flowers, pre-rolls, concentrates, vapes, edibles, and other cannabis-related products are among the company’s cannabis product categories. AWH operates 17 retail sites and sells to licensed cannabis businesses. Ascend Wellness and MedMen Enterprises Inc. (OTC: MMNFF) came to an agreement on May 11 to raise the purchase price of MedMen NY Inc. In detail, a division of that company, from $73 million to $88 million, is subject to the beginning of adult-use sales at a MedMen NY facility.
According to the business’s Q2 2022 financial data, gross revenue climbed by 20.7% over a year and by 16.2% over a quarter to reach $117.7 million. To achieve $97.5 million, net revenue—which excludes intercompany sales of wholesale goods—rose 17.0% annually and 14.6% quarterly. Cash and cash equivalents stood at $140.6 million as of June 30, 2022, while net debt2 totaled $152.7 million. In comparison to Q1 2022, the company’s net loss dropped during the quarter, from $27.8 million to $21.2 million. Earlier this year, the business started distributing in Massachusetts and Michigan after coming to an exclusive agreement with Lowell Smokes.
AAWH Stock Performance
AAWH stock closed on October 4th at $1.81 down 28.46% in the past month of trading. Currently, the stock has a price range of $1.52-$10.23 down 72.43% year to date. According to analysts at CNN Business AAWH stock has a 12-month median price forecast of $7.50 per share. In this case, it would represent an increase of 314.36% from its last trading price of $1.81.
Investing In Pot Stocks In October
There are a lot of possible catalysts coming up in the next several months that might help these pot stocks acquire traction into 2022. Examining their financials and press releases might make it easier to identify the greatest cannabis companies on the market. Many active traders are actively buying in the leading cannabis companies on a short-term basis, taking advantage of the current market volatility. Before establishing a position, use technical indicators and chart patterns to identify the best settings. Finding profit-taking opportunities and increasing your chances of making profitable trades are both possible by doing this. As October begins with momentum for leading marijuana stocks, these may be some of the top stocks to watch this month.