Top Cannabis Stocks Heading Into July 2022
Are top marijuana stocks on your watchlist for a possible bounce in July? The market as a whole appears to want to trend higher to start the week, having made respectable gains from June’s new lows. Top cannabis stocks have also fallen to new lows this month, and unless Congress starts to move on federal cannabis regulation, the downward trend may continue. In a market environment like this one, when rallies seem to be followed by additional losses, long-term investment becomes challenging. One strategy to benefit from the current market volatility is short-term trading.
The modest revenue growth seen by US MSOs in the first quarter of 2022 did not result in market gains. As a result, many cannabis investors trade US marijuana stocks for the short term. Some long-term cannabis investors choose to use short-term trading techniques to move about their long-term main assets. They may now benefit from the daily changes in the stock price thanks to this. MSOs in the US have performed better recently than any other income producers in the world. They have fared better than Canadian LPs since the pandemic.
Making a list of the top marijuana stocks for 2022 could help you determine the best entry opportunities for trading short-term or making long-term investments. This week may bring more volatility to the cannabis market. In last week’s trading, certain US cannabis stocks to buy started to gain some momentum. As we wait for guidance from the general markets this week, these could be some of the top marijuana stocks on your watchlist before July.
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Top US Cannabis Stocks To Watch In Q3 2022
- Curaleaf Holdings, Inc. (OTC: CURLF)
- Green Thumb Industries Inc. (OTC: GTBIF)
- Verano Holdings Corp. (OTC: VRNOF)
Curaleaf Holdings, Inc.
Manufacturing packaged cannabis goods is Curaleaf Holdings, Inc., a multi-state cannabis retailer with 134 retail locations in the US. Adven GmbH, a wholly-owned subsidiary of Curaleaf International, has started marketing medical cannabis products in Germany. One of the most popular brands in the US is Curaleaf’s Select. In November, Curaleaf acquired Tryke Companies, allowing it to grow into three more states. Currently, the corporation’s portfolio includes properties in Arizona, Nevada, and Utah. On May 6, the business opened its 50th location in Florida. Matt Darin will take over as CEO, Curaleaf announced in May.
Revenues for the first quarter of 2022 were $313 million, up 20% over the same period last year, according to the company’s May 9 earnings announcement. In addition, Adjusted EBITDA was $73 million and cash flow from operations was $57.4 million in the first quarter of 2022. With the addition of Los Suenos Farms, the company’s total cultivable area now stands at 4.4 million square miles. In New Jersey, Curaleaf is a well-known cannabis retailer. In June the company opened its 17th location in Pennsylvania and expanded its Fab 5 Freddy B Noble cannabis brand to New Jersey.
On June 27th CURLF shares closed at $5.24, down 13.96% in the last month of trading. The stock is currently trading in a 52-week range of $4.83-$14.80 and is down 41.78% year to date. According to analysts at Tip Ranks CURLF stock has a 12-month average price target of $13.61 per share. In this case, this would represent an upside of 159.73% from its last trading price of $5.24.
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Green Thumb Industries Inc.
A significant player in the cannabis consumer packaged goods (CPG) sector in the US is Green Thumb Industries Inc. Green Thumb has 77 locations operating in 15 states, one of which is in New Jersey. 111 retail licenses are now held by GTI, and more are anticipated in the future. In 2021, GTI established a Cookies on the Las Vegas Strip as part of a unique partnership with the privately held Cookies Brand. After completing its acquisition of Dharma Pharmaceuticals, Green Thumb has announced the launch of its cannabis business in Virginia. The business acquired Leafline Industries, providing them access to the Minnesota market. The business opened its 77th Rise location in April.
GTI announced first-quarter sales of $243 million, a 25% increase over the same period in 2021. With $29 million in net income or $0.12 per basic diluted share, this quarter marks the company’s ninth consecutive one of positive GAAP net income. In addition, it recorded adjusted EBITDA of $67 million, or 28% of revenue. This is particularly significant given that GTI’s first quarter of 2022 saw $55 million in revenue, marking the company’s ninth consecutive quarter of positive cash flow. Additionally, the company had $175 million in cash at the end of the quarter.
On June 27th, GTBIF shares finished at $8.84, down 22.05% in the past month. Currently, the stock has a 52-week price range of $8.05-$35.15 and is down 60.20% year to date. According to analysts at Tip Ranks GTBIF stocks has a 12-month average price target of $34.03 per share. In this case, this would represent an increase of 285.83% from its last trading price of $8.84.
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Verano Holdings Corp.
Verano Holdings is a marijuana company that operates in multiple states and provides customers with legalized cannabis. The company offers a range of brand names for its high-quality cannabis products. Verano now has 100 dispensaries in addition to 12 production and processing facilities throughout 15 states. The company has 47 dispensaries in Florida, where it still has a significant presence. Two of the company’s retail brands, Zen LeafTM and MÜVTM, run dispensaries that cater to both medical and adult-use clients. In Las Vegas, the business launched a drive-through dispensary on Flamingo Road. On May 26, Zen Leaf Westover opened, becoming the company’s second dispensary in the state and its 100th nationally, according to Verano.
Sales increased 67 percent to $202 million in the first quarter of 2022 compared to the same time in the prior year, the company reported in May. Additionally, the first quarter of 2022 witnessed a gross profit of $100 million, or 49% of revenue, compared to the first quarter of 2021, when the gross profit was $54 million. In contrast to the same period in the prior year, Verano recorded a $7 million financial loss for the first quarter of 2022. It’s significant to note that in the first quarter of 2022, the company generated $81 million in unadjusted EBITDA, or 40% of sales, and $81 million in adjusted EBITDA, or 40% of revenue.
VRNOF shares closed at $6.71 on June 27th down 9.08% in the past five trading days. Currently, the stock has a 52-week price range of $6.28-$18.78 and is down 46.66% year to date. According to analysts at Tip Ranks VRNOF stock has a 12-month average price target of $24.45 per share. This would represent an increase of 264.38% from its last trading price of $6.71.
Making Better Investments And Active Trades With Pot Stocks
The top US marijuana stocks may provide value for investors once they start to recover since they have recently made new lows during trading sessions. You could be able to determine which investments are appropriate for your portfolio and trading style by looking at a company’s financial statements and news announcements. Making better-educated trading decisions can be possible if you learn to interpret technical indicators and chart patterns. For active traders in June, the current market volatility in cannabis stocks may provide an opportunity for short-term gains.