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Top Cannabis Stocks in a Falling Market
Are marijuana stocks a good investment in 2022? As the market began to tumble after a bear market surge in early June, several of the top cannabis stocks also declined. However, there could be a spark for the cannabis industry on Capitol Hill. Senate Majority Leader Chuck Schumer met with members of the Republican House last week to discuss the SAFE Banking Act and the HOPE Act. Both cannabis reform ideas were discussed in general, as well as the prospect of integrating the two elements of current bipartisan legislation. In addition, in August, Schumer is expected to officially present the Cannabis Administration and Opportunities Actwhich could serve as a catalyst.
Most major marijuana stocks fell in 2022, hitting new lows in May. Since then, a few notable cannabis stocks have gained ground as we enter June. Some of these marijuana stocks have suffered heavy losses over the past year and are now selling at significantly lower prices. Due to the current market volatility, many seasoned cannabis investors are using short-term tactics to trade the best marijuana stocks. Make a list of best marijuana stocks for 2022 could help you determine where the best entry opportunities are for long-term investments or short-term trading.
Best Marijuana Stocks for Next Week in June
- Ayr Wellness Inc. (OTC: AYRWF)
- AFC Gamma, Inc. (NASDAQ: AFCG)
- Grow Generation Corp. (NASDAQ: GRWG)
- Goodness Growth Holdings, Inc. (OTC: GDNSF)
Ayr Wellness Inc.
Florida-based Ayr Wellness Inc. is a large-scale cannabis company. In Florida, the company now operates 47 dispensaries, with a total of 64 locations across the country. Additionally, the company acquired Herbal Remedies Dispensaries, LLC, allowing it to expand into Illinois. Ayr was licensed to sell cannabis for adult use on a large scale in Massachusetts dispensaries. The company opened its sixth affiliated dispensary in Pennsylvania. In December, Ayr was granted approval to open its 86,000 square foot cultivation and processing facility in Arizona. On February 15, the company completed the acquisition of Levia Cannabis-Infused Seltzer, marking a major step forward in the beverage market.
In the first quarter of 2022, the company reported revenue of $111.2 million, up 90% year-over-year. Additionally, adjusted EBITDA was $19.5 million in the first quarter of 2022, up 6% year-over-year. The company reported a US GAAP operating loss of $21.1 million in the first quarter of 2022. Ayr expects annual adjusted EBITDA of $250 million, operating profit of $100 million and revenue of business of $800 million in the fourth quarter of 2022. At the end of the quarter, the company had a cash balance of $78.7 million. Entourage Vape Offerings was launched in Florida by AYR in March.
AYRWF stock closed on June 10eat $5.89 up 19.72% over the past month. Currently, the stock has a 52-week price range of $4.61 to $31.60 and is down 61.20% year-to-date. According to analysts at Tip Ranks, AYRWF stock has a 12-month average price target of $19.06 per share. In this case, that would represent a 223.60% upside from the last price of $5.89.
AFC Gamma, Inc.
AFC Gamma, Inc. is a well-known cannabis company with healthy cash flow and well-managed operations. The company, created in 2020, specialized in real estate and other securities, as well as in locations with solid supply/demand fundamentals and favorable legal conditions. Senior loans, mortgages, construction loans, bridge financing and other atypical financing solutions are at the heart of AFCG. AFC Gamma’s latest operations have focused on the fast-growing cannabis industry. In 2021, the company agreed to a $250 million credit increase and a $100 million option with Verano Holdings Corp. (OTC: VRNOF).
In May, the company reported net income of $10.2 million, or $0.53 per basic weighted share, for the first quarter of 2022. Additionally, the company’s distributable income in the first quarter of 2022 was of $11.9 million. On April 15, AFC also paid a dividend of $0.55 per common share, up 10% from the previous quarter. Additionally, as of the first quarter of 2022, the company has fulfilled $154.2 million of new commitments and funded $131.5 million of new existing liabilities. The company has a total loan commitment of $482.7 million across 12 portfolio companies as of May 9.
AFCG stock ended at $17.15 on June 10e up 12.68% from the previous month. The stock is down 24.65% year-to-date, with a price range of $14.90 to $25.50. Tip Ranks analysts estimate a 12-month average price of $22.68 per share for AFCG stock. This forecast points to a gain of 32.24% from the stock’s most recent trading price of $17.15.
In the United States, GrowGeneration Corp. is a well-known owner and operator of a retail hydroponic and organic gardening business. Biologics, lighting, and hydroponic equipment are just a few of the products the company sells to cannabis growers. GrowGen currently operates 63 organic garden centers across the country. Since the introduction of GrowGeneration.com, the company has focused on its internet presence. With over 10,000 products ranging from nutrition to lighting technology, the website has become a one-stop e-commerce destination. Over the next five years, the company plans to open more than 100 stores in the United States.
The company announced the opening of the largest hydroponic garden facility in Los Angeles County in the third quarter of 2021. On May 10, GrowGen reported its first quarter 2022 results, with net sales falling to 81.8 million dollars due to weaker industry demand. Additionally, comparable store sales fell 35.5% in the quarter. The quarter ended with a net loss of $5.2 million and a loss per share of $0.09. Overall, the company lost $0.7 million in adjusted EBITDA.
June 10e, shares of GRWG ended at $4.38, up 12.68% over the past month. GRWG stock is down 66.44% year-to-date, with a 52-week price range of $3.62 to $52.80. According to CNN Business analysts, GRWG stock has a 12-month median price target of $6.25 per share. This predicted a 43.02% increase from the last trade price of $4.38.
Goodness Growth Holdings, Inc.
Goodness Growth Holdings, Inc. is a cannabis and intellectual property company dedicated to bringing science, technology and engineering to market. In addition. Resurgent Biosciences, a subsidiary of Goodness Growth, plans to expand into clinical research into psychedelic medicine. The company now operates 18 retail dispensaries across the country. Before changing its name, Goodness Growth had four cannabis licenses in Nevada. Goodness will be able to produce and manufacture cannabis for the medical and recreational sectors in Nevada with these licenses. The Charm City Medicus dispensary in Maryland, according to the company, was completed on November 22. This agreement strengthens Goodness’ position in the medicinal cannabis market in Maryland.
In May, the company reported GAAP revenue of $15.6 million for the first quarter of 2022, up 18.2% from a year earlier. Additionally, gross margin was $2.5 million, or 15.9% of revenue, compared to $5.6 million, or 42.6% of revenue, in the prior quarter. In the first quarter of 2022, the company lost $14.6 million, compared to $6.9 million in the first quarter of 2021. Verano Holdings Corp. (OTC:VRNOF) and the company entered into a formal arrangement agreement in February for a $413 million purchase.
June 10e, GDNSF stock closed at $1.6844, up 11.18% last month. The stock is currently trading within a 52-week price range of $1.20 to $2.65 and is down 1.17% year-to-date. GDNSF stock has a midpoint price target of $2.55, which would represent a 51.51% increase from its last trading price of $1.68.
Finding the Best Marijuana Stocks to Buy in This Volatile Market
Reviewing a company’s financial reports and press releases can help you determine which assets are best suited to your portfolio and your trading style. Understanding chart patterns and technical indicators can help you make better market decisions. In June, the recent volatility in the cannabis market could create an opportunity for active traders. In 2022, a few factors could revitalize the cannabis stock market. Any federal cannabis reform legislation that passes could be a major boost for major marijuana stocks.
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