Top Cannabis Stocks In Q2 2022
Are you looking for the best marijuana stocks to buy right now? In May most of the top cannabis stocks have declined to new one-year lows in the market. The overall market has continued its downtrend as well with the SPDR S&P 500 ETF Trust (NYSEArca: SPY) closing May 9th at $398.17 leaving the S&P 500 dropped under 4000 for the first time since March 2021. In general, this trend could continue for the rest of the year as inflation, geopolitical events, and investors’ fear extend current market conditions.
For most of 2022, the cannabis sector has continued declining mostly due to delays with cannabis reform on the federal level. Although the cannabis sector has been performing poorly in the stock market-leading companies have continued to deliver strong revenue growth going into the first quarter of 2022.
Now as many leading US MSOs prepare to deliver first-quarter results cannabis investors could start positions in these companies at much lower price points. But many investors feel the decline in the overall markets is not over and we could see top pot stocks continue to put in lower trading levels in the coming months.
Top Pot Stocks In This Downtrend
In general, these new lows could be a great opportunity for cannabis investors to gain exposure to the best marijuana stocks in 2022. Making a watchlist of the best cannabis stocks to invest in can help you identify the best entry points for your investments. At the present time, many cannabis investors are taking advantage of the market volatility by trading cannabis stocks on a short-term basis.
Some cannabis investors are currently using a combination of trading strategies to produce gains with pot stocks. This involves establishing a long-term core position and then trading around that core using day trading and swing trading techniques. Using these strategies active traders can take advantage of current market swings and produce gains that can be added to long-term positions when the cannabis stock reaches lower price points.
Before investing in cannabis stocks, it’s important to do your due diligence on a company. Researching a company’s financials and press releases can help you find the best-performing companies to invest in. In addition, watching how a stock moves in the market can allow you to establish the best entry points for your investments. As we continue to see deep declines in the market let’s look at 3 top US marijuana stocks for your 2022 list right now.
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Best US Marijuana Stocks For May 2022
- Verano Holdings Corp. (OTC: VRNOF)
- Curaleaf Holdings, Inc. (OTC: CURLF)
- Jushi Holdings Inc. (OTC: JUSHF)
Verano Holdings Corp.
Verano Holdings is a multi-state marijuana corporation that sells legal marijuana to customers. The company sells high-quality cannabis products under numerous brand names. In 15 states, Verano presently operates 98 dispensaries and 12 manufacturing and processing facilities. In Florida, the corporation has 46 dispensaries, giving it a substantial presence in the state. Zen LeafTM and MÜVTM, the company’s retail brands, operate dispensaries that serve both medicinal and adult-use customers. In October, the company established a drive-through dispensary on Flamingo Road in Las Vegas. Verano acquired Carin Nature, LLC and Pharmaceutical Solutions, Inc. in Connecticut in December.
The company announced the opening of two additional dispensaries in Florida on March 18th. TerraVida and The Healing Center were recently acquired by Verano. Verano already owns six dispensaries in Pennsylvania and has gotten approval to open three more because of the deal. The company established a flagship dispensary with a four-lane drive-through in Pittsburgh earlier this year. In April, the company released its US GAAP fourth quarter and full-year results for 2021. In summary, the company generated $738 million in US GAAP and $760 million in pro forma sales in 2021. Additionally, the adjusted EBITDA margin in 2021 was 44 percent, which was in line with Verano’s expectations. Gross profit climbed by 147 percent to $335 million in 2021, accounting for 45 percent of revenue. The company will release its first-quarter 2022 results on May 25th.
VRNOF Stock Performance
VRNOF shares closed at $7.50 on May 9th, down 3.60% for the trading day. Currently, the stock has a 52-week price range of $7.12-$21.10 and is down 40.38% year to date. According to analysts at Tip Ranks VRNOF stock has a 12-month average price target of $24.38 per share. This would represent an increase of 225.07% from its last trading price of $7.50.
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Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc., a multi-state cannabis retailer with 133 retail locations across the United States, produces packaged cannabis products. Adven GmbH, a wholly-owned subsidiary of Curaleaf International, has commenced marketing medicinal cannabis products in Germany. Curaleaf’s Select brand is one of the most well-known in the United States. Curaleaf extended its operations to three more states after purchasing Tryke Companies in November. The company’s current portfolio includes properties in Arizona, Nevada, and Utah. On May 6th, the company opened its 50th location in Florida.
On May 9th the company delivered its first-quarter 2022 results with revenue of $313 million up 20% year over year. In addition, first-quarter Adjusted EBITDA was $73 million and Q1 2022 cash flow from operations was $57.4 million. Los Suenos Farms was also purchased, increasing the company’s total cultivation capacity to 4.4 million square miles. Curaleaf is one of the most well-known companies presently offering recreational cannabis in New Jersey.
Words From The Executive Chairman
“Our national footprint has always been a key advantage of our growth strategy, and despite a tough macro environment during the first quarter, Curaleaf continued to grow share in several important markets. We saw strong month-over-month growth beginning in March and heading into the second quarter, boosting confidence in our ability to hit full-year revenue guidance of $1.4 billion – $1.5 billion. Given renewed optimism surrounding federal banking reform, a record-breaking 4/20, the exciting launch last month of New Jersey adult-use sales, and the prospect of New York following suit, 2022 is shaping up to be another milestone year.”
Boris Jordan, Executive Chairman of Curaleaf
CURLF Stock Performance
On May 9th CURLF shares closed at $5.61, down 5.75% for the trading day. The stock is currently trading in a 52-week range of $5.14-$15.47 and is down 37.67% year to date. According to analysts at Tip Ranks CURLF stock has a 12-month average price target of $13.91 per share. In this case, this would represent an upside of 147.95% from its last trading price of $5.61.
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Jushi Holdings Inc.
Jushi Holdings Inc. is a cannabis and hemp company with a growing presence in the medicinal and recreational marijuana sectors in the United States. The primary goal of the company is to develop a portfolio of branded cannabis and hemp-derived products for the American market. Under the BEYOND/HELLO brand, Jushi runs 39 dispensaries in the United States. Jushi also has 31 retail licenses in the United States, and Beyond/Hello, its national cannabis dispensary brand, is expanding both online and in-store. NuLeaf Inc. was acquired in April, allowing the business to extend its vertically integrated operations in Nevada.
Jushi announced its fourth-quarter and full-year financial results in March, with Q4 revenue of $65.9 million. Additionally, revenue for the whole year 2021 increased by 159 percent to $209.3 million, compared to the previous year. A net income of $25.3 million resulted from a significant increase in adjusted gross profits to $92.1 million. The company generated $16.9 million in adjusted EBITDA, or 8% of revenue. In 2021, the company expanded its cannabis reach to seven states, with a $100 million senior secured credit facility given by a SunStream Bancorp Inc. portfolio company.
JUSHF Stock Performance
JUSHF stock closed at $2.00 on May 9th down 9.09% for the trading day. Currently, the stock has a 52-week price range of $1.91-$7.49 and is down 38.47% year to date. According to analysts at Tip Ranks JUSHF stock has a 12-month average price target of $5.37 per share. In this case, this represents an upside of 168.35% from its last trading price of $2.00.