Top Marijuana Stocks To Watch For 2022
In December many of the best marijuana stocks to buy have declined to the lowest levels seen in 2021, is now the time to invest? This month it’s starting to look like cannabis investors are selling their positions at a loss for tax benefits. Because of these current declines, new investors may be able to pick up some of the best pot stocks to invest in at lower values.
One major factor for the decline in market value across the cannabis sector is the delays with federal marijuana legalization. After Biden took office and Democrats lead the Senate many investors believed we would see federal cannabis reform in 2021. Now after the SAFE Banking Act was removal from the NDAA in December it seems evident this year lawmakers will not end US cannabis prohibition.
Although this has hurt the cannabis industry in the market it has not slowed down the expansion on the state level. In 2021 many leading cannabis companies delivered strong earnings and expanded rapidly across the growing US market. Although none of this translated into gains in the market it does show how fast the industry is growing currently. In the next five years, many analysts are forecasting the cannabis industry to more than double in the next five years.
Finding The Best Pot Stocks To Invest In Before The New Year
Before investing in cannabis stocks, it’s important to do your due diligence before starting a position. Researching a company’s earnings and press releases can help you find the best companies to invest in. Additionally studying how a stock moves in the market can help you find the best entry point for your investment. Because of the known volatility for pot stocks finding a good entry point can make the difference between having significant returns or incurring losses. Let’s look at 2 top US marijuana stocks for your list right now.
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Top US Cannabis Stocks To Watch Before January
- Green Thumb Industries Inc. (OTC: GTBIF)
- Ayr Wellness Inc. (OTC: AYRWF)
Green Thumb Industries Inc.
At the present time, Green Thumb Industries Inc. is a key player in the cannabis consumer packaged products sector in the United States. Green Thumb now has 68 retail locations in 13 states, with its third location in New Jersey just recently opening. GTI presently has licenses for 111 retail locations and intends to grow. GTI opened a Cookies on the Las Vegas Strip in 2021 as part of a unique agreement with the privately held Cookies Brand. Green Thumb recently announced the completion of its Dharma Pharmaceuticals acquisition and its entry into the Virginia cannabis market.
In November, Green Thumb announced sales of $233.7 million for the third quarter of 2021, up 48.7% year over year. This is the company’s sixth consecutive quarter of positive GAAP net income of $20.2 million, or $0.08 per diluted share. In addition, adjusted operational EBITDA climbed to $81.2 million, accounting for 34.7 percent of revenue. At the conclusion of the third quarter, Green Thumb had $285.8 million in cash on hand. Green Thumb branded items were distributed more widely, and traffic at the 68 dispensaries surged, propelling the company ahead.
GTBIF stock closed on December 128th at $19.81 down 114.27% in the past month. Currently, the stock has a 52-week price range of $18.36-$39.11 and is down 18.82% year to date. According to analysts at CNN Business GTBIF stock has a 12-month median price target of $44.36 per share. In this case, this would represent an upside of 123.01% from its last trading price of $19.81. As GTBIF stock continues to trade near this level this could be a top US cannabis stock for your watchlist in 2022.
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Ayr Wellness Inc.
Ayr Wellness Inc. is a cannabis company with a large presence in Florida. The company now operates 43 dispensaries in Florida and a total of 60 locations around the country. In addition, Herbal Remedies Dispensaries, LLC was acquired, allowing the company to access the Illinois market. Ayr was granted a temporary license to sell adult-use cannabis in Massachusetts dispensaries. Kynd premium flower was released in Arizona in October. In Pennsylvania, the company also launched its sixth associated functioning dispensary. Ayr gained clearance to open its 86,000 square foot Arizona growing and production plant in December.
Ayr reported profitability for the third quarter of 2021 in November, with sales of $96.2 million, increasing 111% year over year. In general, the company’s adjusted EBITDA increased by 40% year over year to $26 million. Ayr had an operating loss of $8.9 million under US GAAP, which included a one-time charge of $34.9 million and non-operating adjustments of $8.9 million. In addition, the business forecasted over a 10% sequential increase in Q4 2021 and a flat Adjusted EBITDA from Q3 to Q4. Ayr’s Adjusted EBITDA target for 2022is now $250-$300 million, but its sales target has remained unchanged at $800 million.
AYRWF stock closed on December 29th at $14.05 down 22.84% in the past month. Currently, the stock has a 52-week price range of $12.16-$37.50 and is down 40.92% year to date. According to analysts at Tip Ranks AYRWF stock has a 12-month average price target of $41.89 per share. In essence, this would represent an upside of 198.15% from its last trading price of $14.05.
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