The past year has not been kind to marijuana investors, who have watched most cannabis stocks collapse as the momentum for federal legalization in Congress stalled. the Marijuana Life Sciences Prospects Index ETF It is down 20% in 2021, from 34% from its highs last February.
Many betting stocks have fared much worse, and the only reason the ETF hasn’t gone down is because companies like the marijuana-focused REIT have performed. Innovative industrial properties Top 10 ETF contracts, performing well through thick and thin.
I recently discussed why I think Innovative Industrial is a solid buy for the sector, but there are other good stocks of marijuana to consider as well, even those that have been decimated by industry pessimism.
With a massive opportunity ahead of them, the following three cannabis companies should be on your list of stocks to buy in January.
One of the largest multi-state vertically integrated operating companies (MSO) in the country, Crisco Laboratories (OTC: CRLBF) He has a two-pronged approach to growth, running front-end retail stores while handling production and processing behind the scenes. It makes it a leading wholesaler of branded cannabis products.
At the end of the third quarter it had 21 production facilities and 46 owned dispensaries, but in December it closed its acquisition of Laurel Harvest Labs, giving it another operating dispensary in Pennsylvania with licensing options to open five more. It also opened its 13th dispensary in Florida, which is the fifth new dispensary it has opened since entering the market last April through its acquisition of Bluma Wellness.
The dual strategy of organic growth and through acquisitions gives Cresco extensive coverage in the most important states for marijuana expansion.
Cresco not only sells marijuana products in its own dispensaries, but is able to include its own cannabis products like Mindy’s and Sunnyside in more than 1,000 dispensaries across the country. More than half is sold in retail stores throughout California, the largest marijuana market.
Cresco stock lost a third of its value in 2021, but Wall Street sees revenue growing at a compound rate of 33% annually and reaching nearly $2 billion by mid-decade, shifting from losses to adjusted net profits of $370 million. At $5 a share, Cresco Labs is a stock to buy this month.
growth generation (NASDAQ: GRWG) Perhaps one of the biggest losers of the past year, which could make an investment in this unique marijuana game a huge winner in 2022.
GrowGeneration does not grow or sell cannabis itself, but rather is the largest dedicated organic and hydroponic supplier in the country. It is a selective stock that must expand along with industry as it provides essential materials that commercial farmers and consumers need for their businesses.
The garden center operator has wide coverage with 62 stores in 13 states, but it’s also strengthening its e-commerce presence, and online sales are expected to reach $35 million a year when it reports fourth-quarter results. It also focuses on private labels and brands to boost its profit margins. Gross margins expanded 290 basis points to 29.4%, which is profitable on an adjusted GAAP basis.
Revenue is expected to double in the next five years to $843 million, and adjusted earnings are expected to triple. Back in February, GrowGeneration was flying high at $68 a share, but today it’s around $13. Wall Street has a consensus price target of $35.75 per share, giving this stock a 170% gain over the next year.
Another great MSO, Colombia care (OTC: CCHWF) It outperformed Cresco Labs with 99 dispensaries in 17 states, as well as 32 growing and manufacturing facilities operating in tandem with its wholesale distribution business in 13 markets. But it’s really focused on limited licensing markets like Pennsylvania, Ohio and Massachusetts, which limits its competition and gives it a measure of pricing power.
Although his goal is to expand as quickly as possible. In recent months, it has acquired vertically integrated medical marijuana company Green Leaf Medical; CannAscend, a four-dispensary operation focused on Ohio; and California-based Project Cannabis, wholesaler and retailer. It also bought Medicine Man, and just entered the new medical marijuana market in Virginia with some of the state’s first whole flower sales to patients under its Seed & Strain and gLeaf brands.
Columbia Care stock lost more than half its value in 2021. That’s despite third-quarter revenue more than doubled from a year ago and comparable-store sales up nearly 16%.
Wall Street remains bullish, expecting revenue to exceed $1.3 billion in the next few years, and with a target price of $12.80 per share, this MSO is expected to rise nearly 350% in the next year from less than $3 per share. – Share present value. January would be a great time to get your hands on your growing marijuana stock.
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