2024-03-27 09:20:08 ET
Do These Marijuana Stocks Hold Value In Your Portfolio?
In today’s world of cannabis investing marijuana stocks could soon see less volatile trading. This possibility comes from a few future factors. For starters the reason there is currently a large amount of volatile trading is from lack of reform and better regulations. Even with all the growth and success some feel that the green rush is just a bubble soon to burst. At this time cannabis is still federally illegal even with more than half of the United States having legalized the substance. In the US there is an increase in the demand for more cannabis products which companies plan to meet.
So some of the ways we could see better trading from marijuana stocks are as follows. If we can see all 50 states having some type of legal market, it would help drastically. What this would do is show that cannabis can be taxed properly and regulated like any other consumer product. Now the biggest and certain way to see less volatility is federally legalizing cannabis and ending marijuana prohibition. People still have the fear of an industry shut down due to no federal reform in favor of cannabis.
But when the time comes this is where we will have the highest potential for less volatile trading for marijuana stocks. With all this up-and-down trading catching the right cannabis stock to buy on the dip is a strategy worth exploring. Especially if you are interested in the cannabis sector. Preparation and due diligence are key for all investing and marijuana stocks are no different. Below are some top marijuana stocks to watch this month.
Top Marijuana Stocks Today
- GrowGeneration Corp. ( NASDAQ:GRWG )
- Hydrofarm Holdings Group, Inc. ( NASDAQ:HYFM )
- The Scotts Miracle-Gro Company ( NYSE:SMG )
GrowGeneration Corp.
GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. In recent news, the company announced it has authorized the company’s first share repurchase program.
The intent is to repurchase up to $6 million of GrowGen’s outstanding common stock. So the share repurchase program will begin on April 1. This will continue for up to one year, which allows for repurchases to be made in the open market.
Words From The Company
Darren Lampert, GrowGeneration’s Co-Founder and Chief Executive Officer, stated, “Today’s announcement of our share repurchase program further underscores our conviction in the strength of our underlying business and our view that GrowGen shares remain undervalued. This program acts as one pillar of our shareholder value creation strategy as we continue to evaluate all potential uses for our strong balance sheet, including reinvesting in our brands, strategic acquisitions, and stock repurchases to enhance long-term shareholder value.”
Hydrofarm Holdings Group, Inc.
Hydrofarm Holdings Group, Inc., together with its subsidiaries, manufactures and distributes controlled environment agriculture (CEA) equipment and supplies in the United States and Canada.
In the most recent news, the company has reported its Q4 and full 2023 financials.
[Read More] These Marijuana Stocks Could See Big Gains In 2024
Q4 2023 Highlights
- Net sales decreased to $47.2 million compared to $61.5 million.
- Gross Profit(2) increased to $8.4 million compared to Gross Loss(2) of $(0.5) million. Gross Profit Margin(2) increased to 17.9% of net sales compared to (0.8)%.
- Adjusted Gross Profit(1)(2) increased to $11.5 million compared to $9.0 million.
- Adjusted Gross Profit Margin(1)(2) increased to 24.3% of net sales compared to 14.7%.
- Net loss(2) improved to $(15.2) million compared to net loss(2) of $(35.3) million.
- Adjusted EBITDA(1)(2) increased to $(0.6) million compared to $(8.4) million.
[Read More] Top Picks: Canadian Cannabis Giants Set to Flourish in Q2 2024
The Scotts Miracle-Gro Company
The Scotts Miracle-Gro Company, together with its subsidiaries, manufactures, markets, and sells products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally. It operates through three segments: U.S. Consumer, Hawthorne, and Other.
On March 20th the company announced Hawthorne and BFG supply Forge strategic distribution partnership. The partnership is a key element of both companies’ broader strategies to capitalize on growth opportunities within the hydroponic products industry. As well as delivering value-accretive solutions to growers.
