Why Are Cannabis Stocks Down In 2022?
Are top marijuana stocks to buy for 2022 on your watchlist? In April the best cannabis stocks to watch are establishing new lows as the overall market continued to trend lower. In general, the cannabis sector has experienced declines for more than a year partly due to delays with US marijuana federal legalization. At the present time, House Representative Earl Blumenauer and Rep. Ed Perlmutter are attempting to attach the SAFE Banking Act to the America COMPETES Act.
The marijuana banking legislation has passed through the House six times before but continues to get stopped in the Senate. In fact, for 2021 the Senate has stopped every cannabis reform legislation passed by the House including the MORE Act. One reason for this is that Senate Majority Leader Chuck Schumer has been preparing his own federal marijuana legalization bill the CAOA which he expects to formally introduce in August. Although federal cannabis reform has weighed heavily on top marijuana stocks it has not affected the growth of leading cannabis companies in the US.
In 2021 leading cannabis companies rapidly expanded across the US into new markets and showed significant revenue growth that could continue this year. According to a recent report from MJBiz the legal US cannabis market is forecast to see $33 billion in retail sales in 2022. In addition, the cannabis industry is forecast to produce $99 billion in total positive economic impact from legal cannabis in 2022.
Investing In US Pot Stocks Right Now
As it stands the US cannabis industry could be one of the fastest-growing markets in the next five years. From current trading levels, there could be an opportunity for both short-term and long-term gains in cannabis stocks. Unfortunately, many investors are waiting for the overall market to find a bottom before investing in current market volatility.
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Before investing in cannabis stocks, it’s important to do your research on a company. Looking into a company’s finances and press releases can help you find the best cannabis stocks to invest in. Additionally learning to use chart patterns and technical indicators can help you establish the best entry points for your investments. As we continue seeing a decline in the best pot stocks to watch let’s look at 3 top US marijuana stocks to add to your list before May.
Best Marijuana Stocks In 2022
- Trulieve Cannabis Corp. (OTC: TCNNF)
- Green Thumb Industries Inc. (OTC: GTBIF)
- Curaleaf Holdings, Inc. (OTC: CURLF)
Trulieve Cannabis Corp.
Trulieve Cannabis Corp. is a high-performing cannabis company that operates in 11 states and has the greatest market share in Florida’s cannabis industry. In April, the company established its 115th dispensary in the state. The company is one of the market leaders in the United States, with 164 retail dispensaries. In addition, the company has a 4 million square foot cultivation and processing capacity. Trulieve has been granted a manufacturing license in Georgia, allowing it to expand its presence in the Southeast cannabis market. In addition, the company opened its first dispensary in Massachusetts, laying the groundwork for future expansion. The business purchased a 64,00 sq. ft. growing facility in Phoenix on February 15th, boosting its production capacity in the southwest region. On April 27th the company closed the acquisition of Greenhouse Wellness West Virginia Dispensaries LLC expanding its presence in West Virginia.
In 2021, Trulieve set a new high with sales of $938.4 million, up 80% year over year, and quarterly revenue of $305.3 million, up 36% sequentially. As a result, in 2021, the company had a gross profit of $566.1 million, with a gross margin of 60.3 percent. In 2021, Trulieve generated an adjusted gross profit of $621.4 million, with a 66.2 percent adjusted gross margin. Furthermore, the company reported $18.0 million in net income and $123.4 million in adjusted net income, excluding $105.4 million in non-recurring compensation, the fair value of inventory step-up, and transaction, acquisition, and integration charges primarily related to the Harvest Health & Recreation Inc. acquisition. In 2021, the business plans to build 84 dispensaries, bringing its total number of locations to 112 percent.
TCNNF Stock Performance
TCNNF stock closed on April 27th at $15.08 down 5.69% for the trading day. Currently, the stock has a 52-week price range of $15.00-$44 and is down 42.02% year to date. According to analysts at Tip Ranks TCNNF stock has a 12-month average price target of $54.93 per share. In this case, this represents an upside of 264.26% from its last trading price of $15.08.
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Green Thumb Industries Inc.
Green Thumb Industries Inc. is a key player in the United States’ cannabis consumer packaged goods (CPG) market. Currently, Green Thumb has 77 stores in 15 states, including one in New Jersey. GTI now has 111 retail licenses and intends to increase this number in the future. As part of a one-of-a-kind agreement with the privately held Cookies Brand, GTI opened a Cookies on the Las Vegas Strip in 2021. Following the conclusion of its acquisition of Dharma Pharmaceuticals, Green Thumb has announced its debut in the Virginia cannabis market. Leafline Industries was acquired by the company, giving them access to the Minnesota market. On April 14th, the company debuted its 77th Rise storefront.
GTI reported fourth-quarter and full-year 2021 profits on March 1st, with Q4 revenues of $243.6 million, up 37.4% year over year. The company’s GAAP net income was $22.8 million, or $0.10 per basic and diluted share, for the quarter, marking the company’s sixth consecutive quarter of positive GAAP net income. A total of $76 million in adjusted operational EBITDA was also recorded, accounting for 31.2 percent of sales. The overall revenue for 2021 was $893.6 million, an increase of 60.5 percent over the previous year. Adjusted operating EBITDA climbed to $307.8 million, or 34.5 percent of revenue, up 71.4 percent. After the closing on May 4th, the company will release its first-quarter 2022 results.
GTBIF Stock Performance
On April 27th, GTBIF shares finished at $14.46, down 7.54 percent for the trading day. Currently, the stock has a 52-week price range of $14.39-$35.15 and is down 34.75% year to date. According to analysts at Tip Ranks GTBIF stocks has a 12-month average price target of $41.53 per share. In this case, this would represent an increase of 187.21% from its last trading price of $14.46.
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Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc., a multi-state cannabis retailer with 128 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 portfolio now includes properties in Arizona, Nevada, and Utah. On March 14th, the company opened its 45th location in Florida.
Curaleaf’s revenue for the fourth quarter and fiscal year 2021 was $1.2 billion, up 93 percent from the previous year. In addition, the company achieved $320 million in sales and $80 million in adjusted EBITDA in the fourth quarter. The corporation opened eight new retail stores in the fourth quarter of 2021, resulting in gross profit sales of $159 million. Los Suenos Farms was also acquired, bringing the total cultivation capacity of the company to 4.4 million square miles. After the market closes on May 9th, the company will release its first-quarter 2022 financials. Curaleaf is one of the most well-known companies now supplying New Jersey’s new recreational cannabis industry.
CURLF Stock Performance
On April 27th CURLF shares closed at $5.98, down 11.14% in the last month. The stock is currently trading in a 52-week range of $5.35-$15.47 and is down 33.56% year to date. According to analysts at Tip Ranks CURLF stock has a 12-month average price target of $14.64 per share. In this case, this would represent an upside of 144.82% from its last trading price of $5.98.