Best Cannabis Stocks to Buy in June 2022
The cannabis market is amid earnings as top marijuana stocks continue to trend towards the lower levels achieved in May. In the first quarter of 2022, this mixed bag of profits might start to show investors which cannabis companies are still performing well. Last week’s trading saw a bear market rally, and several of the market’s biggest marijuana companies saw percentage increases. As investors return to this tumultuous market, some top ancillary cannabis stocks began to show strength heading into Memorial Weekend.
If you’re unfamiliar with ancillary cannabis companies, they’re businesses that assist the marijuana sector without touching the plant. Following steep stock market falls in the first quarter, some of these ancillary cannabis companies have reported good Q1 2022 results in May. While some investors believe that the following few months may provide some possible catalysts for top marijuana businesses, June may be a good opportunity to add some of the best ancillary marijuana stocks to your watchlist.
Best Ancillary Marijuana Stocks For June 2022
- Power REIT (NYSE: PW)
- GrowGeneration Corp. (NASDAQ: GRWG)
- Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM)
- WM Technology, Inc. (NASDAQ: MAPS)
Power REIT (PW)
Power REIT is a real estate investment trust specializing in long-term real estate with high risk-adjusted returns. The company is building up a portfolio of CEA assets including greenhouses and processing factories. Tenants who have been granted permission to cultivate medical marijuana on the grounds are now renting the facilities. The funds will be used by Power REIT to complete the necessary improvements to the assets that are ready for development. Greenhouse facilities owned by Power REIT offer a long-term growth opportunity.
On April 1st, Power REIT announced its fourth-quarter and full-year 2021 results, which included a 42 percent increase in net income per share. The company invested $48 million in nine greenhouses, establishing itself as a pioneer in innovative greenhouse farming techniques. In addition, the company now owns 21 CEA buildings totaling over 1 million square feet in its portfolio. In May, the company issued an update for the first quarter of 2022, reporting a Core FFO of $0.40 per share, down from $0.46 per share in Q1 2021. The Trust paid $163,000 in quarterly dividends, or $0.4843 per share, on March 15th, 2022.
PW stock closed on May 27th at $23.40 up 9.35% in the last five trading days. Currently, the stock has a 52-week price range of $19.30-$81.99 and is down 66.03% year to date. According to analysts at CNN Business PW stock has a consensus price target of $44 per share. In this case, this would represent an upside of 88.84% from its last trading price of $23.40.
In the United States, GrowGeneration Corp. is a well-known retail hydroponic and organic gardening business owner and operator. Organics, lighting, and hydroponic equipment are just a few of the goods sold to cannabis producers by the company. GrowGen presently operates 63 organic garden centers around 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 developed into a one-stop e-commerce destination. During the next five years, the company plans to open over 100 stores around 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 10th, GrowGen released its first-quarter 2022 results, with net sales falling to $81.8 million owing to weaker industry demand. In addition, comparable-store sales fell 35.5 percent during 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.
On May 27th, the shares of GRWG finished at $5.44, up 7.51% in the past five days of trading. GRWG stock is down 58.31% year to date, with a 52-week price range of $3.62-$52.81. According to CNN Business analysts, GRWG stock has a 12-month median price target of $7.00 per share. This would forecast a 28.44 percent increase over the last transaction price of $5.44.
[Read More] 3 Marijuana Stocks For Your June Watch List
Hydrofarm Holdings Group, Inc.
Hydrofarm Holdings Group, Inc. is a well-known supplier of hydroponics and controlled-environment agriculture equipment and supplies. The company sells a wide range of cannabis-growing equipment in general. High-intensity grow lights, temperature control systems, and growth materials are just a few of the company’s goods. On November 1st, the company announced the completion of its acquisition of Innovative Growers Equipment, Inc., in addition to a wide assortment of one-of-a-kind branded items. The company partnered with AXEON Water Technology in January to provide cutting-edge reverse osmosis water filtration technology and solutions.
Hydrofarm revealed its first-quarter 2022 results on May 10th, with net sales staying the same at $111.4 million. Furthermore, overall earnings dropped to $16.6 million from $23.2 million the year before. The company reported a net loss of $23 million, or $0.52 per share. Hydrofarm expects revenue of $480-$520 million for the full year of 2022, with adjusted EBITDA of $46-$54 million, or roughly 10% of net sales.
HYFM Stock closed on May 27th at $7.17 up 8.14% in the past five trading days. The stock has a 52-week price range of $5.91-$63.49 and is down 74.66% year to date. According to analysts at Tip Ranks HYFM stock has a 12-month average price target of $14.67 per share. In this case, this would be an increase of 104.60% from its last trading level of $7.17.
WM Technology, Inc.
Weedmaps is a cannabis-related user and business directory as well as an online marketplace. WM Technology, Inc. owns it as a subsidiary. Cannabis stores frequently employ the WM Business cloud-based SaaS solutions as an operating system. The goods from WM Business, in general, aid in conforming to the cannabis industry’s complex and ever-changing regulations. Weedmaps revealed a multi-year contract with Kevin Durant’s Thirty-Five Ventures earlier this year, as well as a sponsorship deal with Boardroom. Sprout, a well-known cannabis CRM and marketing platform, was purchased by the company in 2021.
In the United States, Weedmaps now includes over 18,000 business listings and an estimated 13.9 million monthly active users. The average monthly income per paying client has dropped to $3789. Weedmaps announced their first quarter 2022 figures on May 4th, with sales rising 40% year over year to $57.5 million. In addition, the number of monthly active users grew by 52% year over year to 16.4 million. The company had a gross profit of $53.7 million, or a profit margin of 93 percent. In addition, the company lost $31.2 million in the quarter, compared to a profit of $7.7 million the previous year.
MAPS stock closed at $5.83 on May 27th up 8.16% in the past five trading days. Currently, the stock has a 52-week price range of $4.22- $22.24 and is down 2.51% year to date. According to analysts at Tip Ranks MAPS stock has a 12-month average price target of $9.08 per share. In essence, this would represent an upside of 55.75% from its last trading price of $5.83.
Ancillary Cannabis Companies In 2022
These ancillary cannabis stocks might be solid possibilities for investing in the cannabis market as the cannabis sector continues to trade at lower price points. It’s crucial to perform your own research on these companies and look into their financials and press releases before making an investment. These ancillary marijuana stocks might provide significant profits for both short and long-term investors based on current trading levels. These may be the best ancillary marijuana stocks to add to your watchlist as we enter June.