Best Cannabis Stocks For Q1 2022
So far in 2022 top marijuana stocks have seen significant market volatility in January. After experiencing months of declines many of the best cannabis stocks to buy are trading near the new lows established since December 2021. Although Congress has delayed changing federal cannabis laws for over a year now on the state level the industry continues to grow rapidly. Last year’s earnings show many leading companies reporting strong revenue growth and expanding quickly into new markets.
As this year begins with more states establishing legal medical and recreational markets the next few years could see continued expansion. One of the fastest-growing areas of the cannabis industry has been in the US. As states, new states begin cannabis markets the industry is forecast to more than double in the next five years.
According to a recent report from Grand View Research North American legal marijuana market is expected to reach an estimated $104.9 billion by 2027. This is at a 15.5% CAGR as the demand continues to grow for cannabis. At the present time, there are some top MSOs that continue to show potential in the US market. Because of recent declines in the cannabis sector, it could be time to make a watchlist of the best marijuana stocks to buy in 2022.
Top Pot Stocks And Investment Strategies For 2022
Before making an investment it’s important to research a company and its finances. Looking into a company’s press releases and earnings can help you find the best companies to invest in. In addition, following how a cannabis stock moves in the market can allow you to establish the best entries for your investments. Learning how to use technical analysis to find the best setups for trades can help you become a successful trader.
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Because of the possibility of seeing some form of federal cannabis reform in 2022 top pot stocks could have a significant catalyst soon. Although January has led to more declines in market value for US pot stocks this trend could be coming to an end. Let’s look at 2 top US marijuana stocks for your watchlist right now.
Top Cannabis Stocks For January 2022 Watchlist
- Cresco Labs Inc. (OTC: CRLBF)
- TerrAscend Corp. (OTC: TRSSF)
Cresco Labs Inc.
Cresco Labs is a cannabis corporation established in the United States that is vertically integrated. In the United States, the company is now the leading maker of branded cannabis products. According to recent BDSA research, Cresco is the most preferred marijuana brand in Illinois and Pennsylvania. Cresco now has 45 retail locations in 11 states, 20 manufacturing facilities, and 47 retail licenses. Sunnyside has opened its fourth dispensary in Pennsylvania as part of its goal to grow into new regions. The company also stated that its Good News line of products would be expanded to include more consumables and vaping alternatives. In October, the company will migrate to owned brand distribution in California to increase profitability and eliminate third-party distribution. Blair Wellness Center, a dispensary in Maryland, has been bought by Cresco. In November, the company announced the completion of the acquisition of three high-performing Pennsylvania clinics.
The company made $215.5 million in sales in the third quarter of 2021, up 40.6 % year over year. As a result, Cresco earned $116.7 million in gross profit or 54.2 percent of revenue. Additionally, Cresco’s Adjusted EBITDA increased by 24% to $56.4 million in the most recent quarter. For the rest of 2021, the business repeated its previous prediction, predicting gross profit margins of more than 50% and Q4 sales of $235-$245 million. Another significant contributor to Cresco’s loss was a $291 million impairment charge linked to changes in intangible assets because of the company’s shift in strategy for its California operations.
CRLBF Stock Performance
CLRBF stock is trading at $6.84 on January 12th up 5.06% in the past five days. The stock is currently trading in a 52-week price range of $6.02-$17.49, representing a six-month loss of 42.71%. CRLBF stock has a 12-month average price target of $16.69 per share, according to CNN Business analysts. This analysis reflects a 151.36% increase over the last trade price of $6.84.
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TerrAscend is a cannabis company that cultivates and sells medicinal and adult-use cannabis in Canada and the United States. The company is a major cannabis operator in the United States, with operations in Pennsylvania, New Jersey, and California. TerrAscend has licensed growing and processing facilities in Maryland and Canada. The company specializes in the development and distribution of hemp and cannabis-derived goods, as well as artisan cannabis delicacies. In Maryland, TerrAscend has launched a range of Kind Tree Branded goods. The Maryland factory already produces 15 strains of flower under the Kind Tree brand, and it will soon add vapes and half-gram pre-rolls to the mix.
In November, the company reported third-quarter 2021 results, with net revenues of $49.1 million, up 29% year over year but down 16% sequentially. As a result, TerrAscend’s adjusted gross profit margin has dropped to 46 percent% from 59 percent in Q3 2020. TerrAscend also agreed to be the only cultivator and manufacturer of COOKIES branded items in New Jersey, pending regulatory permission, and to provide COOKIES to its three dispensaries in the state. In September, the business received prequalification approval for the acquisition of Gage Growth Corp. in Michigan (OTC: GAEGF). On January 5th TerrAscend appointed Ziad Ghanem as president and chief operating officer.
TRSSF stock is trading at $5.96 on January 12th and is up 3.15% in the past five trading days. Currently, the stock has a 52-week price range of $4.89-$16.25 and is down 42.88% in the past six months. According to analysts at Tip Ranks TRSSF stock has a 12-month average price target of $10.94 per share. In this case, this would represent an upside of 83.73% from its last trading price of $5.96.
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