Best Cannabis Stocks In Q1 2022
Are you looking for top marijuana stocks to buy for 2022? To start the new year the best cannabis stocks to invest in have already begun to see significant market volatility. In 2021 most of the cannabis sector saw substantial declines as the year progressed. This is mostly related to the delays with achieving federal marijuana legalization and reform in the US. In 2021 many leading MSOs delivered strong earnings throughout the year. Unfortunately, this did not translate into gains in the market.
Instead, most of the cannabis sector only traded on the possibility of reaching the end of federal marijuana prohibition. In the US on the state level, the cannabis industry has been growing rapidly with many new states establishing legal medical and recreational markets in 2022. Currently, more than two-thirds of Americans believe cannabis should be made legal on the federal level.
In Congress, there has been a bipartisan push to try and get legislation passed in the House. But these attempts continue to get stopped in the Senate where lawmakers are trying to reach an agreement on decriminalization. As this process continues in 2022 it seems the cannabis sector has priced in the possibility of not achieving federal cannabis reform this year. Because of this top marijuana stocks may begin to trade off company fundamentals instead of just legalization.
Top Pot Stocks And Making Better Investment Decisions
Before investing in top pot stocks it’s important to do your due diligence on a company. In general, researching a company and its earnings and press releases can help you find the best-performing ones in the industry. In addition, studying how a stock performs in the market and finding the best trade setup for your position are important factors in becoming a successful trader. As we start a new for cannabis stocks current price points could offer some future potential for cannabis investors. Let’s look at 3 top marijuana stocks to add to your watchlist for Q1 2022.
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Top Cannabis Stocks To Watch Right Now In January
- Green Thumb Industries Inc. (OTC: GTBIF)
- Verano Holdings Corp. (OTC: VRNOF)
- TerrAscend Corp. (OTC: TRSSF)
Green Thumb Industries Inc.
Green Thumb Industries Inc. is a major player in the U.S. cannabis consumer packaged goods market. The company currently has 73 retail locations in 15 states, due to the recent acquisition of Leafline Industries in Minnesota. GTI currently has 111 licenses for retail outlets and plans to expand. As part of a unique deal with the privately held Cookies Brand, GTI established a Cookies on the Las Vegas Strip in 2021. Green Thumb recently announced that it had completed its acquisition of Dharma Pharmaceuticals and had entered the Virginia cannabis industry as well.
Green Thumb reported revenues of $233.7 million for the third quarter of 2021 in November, increasing 48.7% year over year. The company’s GAAP net income of $20.2 million, or $0.08 per diluted share, is up for the sixth quarter in a row. Furthermore, adjusted operating EBITDA increased to $81.2 million, accounting for 34.7 percent of total sales. Green Thumb has $285.8 million in cash on hand at the end of the third quarter. Green Thumb merchandise became more widely available, and traffic at the 68 dispensaries increased, driving the company forward.
GTBIF Stock Performance
GTBIF stock closed on January 7th at $20.84 and is down 5.96% in the past five days. Currently, the stock has a 52-week price range of $18.36-$39.11 and is down 36.89% in the last six months. According to analysts at CNN Business GTBIF stock has a 12-month median price target of $43.71 per share. In this case, this would represent an upside of 109.76% from its last trading price of $20.84. As long as GTBIF stock remains at this level, it might be a top US cannabis company to keep an eye on in 2022.
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Verano Holdings Corp.
Verano Holdings is a multi-state cannabis company that provides legal cannabis products to its customers. The company, in general, produces high-quality cannabis products that are offered under a variety of brand names. Verano, for example, has 90 dispensaries and 12 growing and processing facilities spread over 11 states. In Florida, the corporation has 41 dispensaries, giving it a significant foothold in the state. Verano plans to build more than 92 dispensaries by 2021. Zen LeafTM and MÜVTM, the company’s retail brands, run dispensaries that serve both medicinal and adult-use consumers. In October, the company established a drive-through dispensary on Las Vegas’ Flamingo Road. Verano acquired Carin Nature, LLC and Pharmaceutical Solutions, Inc, both of which have operational dispensaries in Connecticut, in December.
Verano just bought TerraVida and The Healing Center. Because of the deal, Verano now controls six dispensaries in Pennsylvania and has permission to establish three more. Earlier this year, the business opened a flagship dispensary in Pittsburgh with a four-lane drive-through. In November, the company announced $207 million in third-quarter 2021 sales, up 106 percent from the previous year. Additionally, gross profit increased by 33% sequentially to $133 million, or 64% of revenue, on an unadjusted basis. In Q3, Verano expanded its reach by opening seven additional dispensaries throughout its core markets.
VRNOF Stock Performance
VRNOF stock closed at $12.56 on January 7th up 15.02% in the past month. At the present time, the stock has a 52-week price range of $9.68-$28.00 and is down 19.69% in the past six months. According to analysts at Tip Ranks VRNOF stock has a 12-month average price target of $32.53 per share. In this case, this would represent an increase of 159% from its last trading price of 12.58. In January VRNOF stock could be one of the best marijuana stocks to buy in 2022.
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TerrAscend is a cannabis company based in Canada and the United States that cultivates and distributes therapeutic and adult-use cannabis. With operations in Pennsylvania, New Jersey, and California, the company is a prominent cannabis operator in the United States. TerrAscend operates facilities in Maryland and Canada that are permitted to cultivate and process cannabis. The business focuses on the creation and marketing of hemp and cannabis-derived products, as well as artisan cannabis delicacies. TerrAscend has released a line of Kind Tree branded products in Maryland. Under the Kind Tree brand, the Maryland plant now produces 15 strains of flower, and it will soon add vapes and half-gram pre-rolls to the mix. TerrAscend announced Ziad Ghanem’s appointment as President and Chief Operating Officer on January 5th.
In November, the company announced net revenues of $49.1 million for the third quarter of 2021, up 29% year over year but down 16% sequentially. As a result, TerrAscend’s adjusted gross profit margin has decreased from 59 percent in Q3 2020 to 46 percent. TerrAscend also agreed to be New Jersey’s only cultivator and maker of COOKIES branded products, pending regulatory approval, and to supply COOKIES to its three dispensaries. The acquisition of Gage Growth Corp. in Michigan was prequalified in September (OTC: GAEGF).
TRSSF stock closed at $6.04 on January 7th up 5.59% in the past month. Currently, the stock has a 52-week price range of $4.89-$16.25 and is down 42.20% in the past six months. According to analysts at Tip Ranks TRSSF stock has a 12-month average price target of $10.90 per share. In this case, this would represent an upside of 80.49% from its last trading price of $6.04.