Cannabis Stocks And Market Volatility In 2022
As the markets brace for a possible attack in Ukraine top marijuana stocks ended the week with some downside on Friday. In February most of the best cannabis stocks to watch began showing upward momentum after an announcement came from Congress about an attempt to pass federal cannabis reform in 2022. But much of these gains were given back this week as the possibility of war increased.
For many cannabis investors, 2022 could be a great year for top pot stocks. With possible catalysts on the horizon for the industry this year, it could be time to invest in the best marijuana stocks in 2022. Since the beginning of the pandemic, the cannabis industry has experienced significant growth. In the US many new states have now established medical and recreational markets allowing leading cannabis companies to expand their presence.
In the next five years, many analysts are forecasting the cannabis market will more than double in size. But before investing in the cannabis sector there are some important factors to consider. For one top cannabis stocks are known for being some of the more volatile areas of the market. This makes it difficult for investors to establish long-term positions in the sector. Because of this, some cannabis investors use a tier trading strategy when starting a position in pot stocks. One way of doing this is to enter a position in smaller increments until the investor has reached the desired size of the position.
Different Ways To Trade Pot Stocks For Short Or Long Term Positions
Another strategy some investors use is to also trade around a core position. In this case, the trader will establish a core position and then trade around that core taking advantage of the price fluctuations by buying shares at lower values and selling them during higher trading action. Before investing in cannabis stocks, it’s important to do your research on a company before starting a position. Researching a company’s earnings is a good way to find the best performing businesses in the market.
Additionally following how a stock behaves in the market and finding grade A setups can allow you to increase your success when trading. As we deal with a lot of uncertainty in the market due to inflation worries and the possibility of war in Ukraine it could be time to make a cannabis stock watchlist for next week. Let’s look at 5 top marijuana stocks to watch over the long Presidents Day weekend.
Top Cannabis Stocks To Watch In 2022
- Trulieve Cannabis Corp. (OTC: TCNNF)
- Green Thumb Industries Inc. (OTC: GTBIF)
- Verano Holdings Corp. (OTC: VRNOF)
- Curaleaf Holdings, Inc. (OTC: CURLF)
- Cresco Labs Inc. (OTC: CRLBF)
Trulieve Cannabis Corp.
Trulieve Cannabis Corp. is a high-performing cannabis company with a foothold in 11 states and the greatest market share in Florida’s cannabis sector. On February 10th, the company opened its 112th dispensary in the state. Harvest Health & Recreation Inc. was bought, and by 2021, revenue is estimated to surpass $1.2 billion. The company is now the industry leader in the United States, with 161 retail locations. In addition, the company has a 3.5 million square foot cultivation and processing capacity. Trulieve has obtained a production license in Georgia, allowing the business to expand its presence in the Southeast cannabis market. Furthermore, the company opened its first dispensary in Massachusetts, laying the groundwork for future expansion. On February 15th the company acquired a 64,00 sq. ft. cultivation facility in Phoenix increasing its production capacity in the southwest hub.
Trulieve released Live Diamonds, a hydrocarbon extraction product that is the first of its kind in Florida, on January 10th. Trulieve’s third-quarter 2021 results were released in November, marking the company’s 15th straight profitable quarter. Over the previous year, the company’s net revenues climbed by 64% to $224.1 million. As a result, Trulieve earned $153.9 million in gross profit, with a gross margin of 68.7%. The company’s adjusted EBITDA was $98 million, accounting for 43.7 percent of revenue. The corporation began its agricultural efforts and launched its first dispensaries in West Virginia.TCNNF stock closed on February 18th at $23.72 down 3.77% for the trading day. Currently, the stock has a 52-week price range of $18.46-$53.73 and is down 15.50% in the last six months.
Green Thumb Industries Inc.
Green Thumb Industries Inc. is a key player in the cannabis CPG market in the United States. Currently, Green Thumb now has 75 sites in 15 states, including one in New Jersey. GTI has 111 retail licenses and is looking to grow. As part of a one-of-a-kind agreement with the privately held Cookies Brand, GTI opened a Cookies on the Las Vegas Strip in 2021. After completing the acquisition of Dharma Pharmaceuticals, Green Thumb has announced its entry into the Virginia cannabis market. Leafline Industries was acquired by the company, giving them access to the Minnesota market.
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, improved for the sixth quarter in a row. In addition, adjusted operating EBITDA increased to $81.2 million, accounting for 34.7 percent of total revenue. Green Thumb has $285.8 million in cash on hand at the end of the third quarter. Foot traffic at Green Thumb’s 68 dispensaries increased as the business’s products became more widely available, propelling the company forward. Before the market opens on March 1st, the company will publish its fourth-quarter and full-year 2021 earnings. GTBIF stock closed at $21.27 on February 18th up 3.20% in the last five trading days. Currently, the stock has a 52-week price range of $16.66-$38.21 and is down 29.38% in the last six months.
Verano Holdings Corp.
Verano Holdings is a multi-state cannabis company that provides legal cannabis products to its customers. The corporation sells high-quality cannabis products under a variety of brand names. Presently, Verano has 93 dispensaries and 12 cultivation and processing facilities throughout 11 states. In Florida, the corporation has 41 dispensaries, giving it a significant foothold in the state. Zen LeafTM and MÜVTM, the company’s retail brands, operate dispensaries that serve both medicinal and adult-use consumers. In October, the company established a drive-through dispensary on Flamingo Road in Las Vegas. Verano acquired Carin Nature, LLC and Pharmaceutical Solutions, Inc, both of which run dispensaries in Connecticut, in December.
TerraVida and The Healing Center were recently acquired by Verano. Verano now operates six dispensaries in Pennsylvania and has the approval to open three more as a result of the agreement. The company established a flagship dispensary with a four-lane drive-through in Pittsburgh earlier this year. The company said in November that revenues for the third quarter of 2021 were $207 million, increasing 106 percent from the previous year. Additionally, on an unadjusted basis, gross profit climbed by 33% sequentially to $133 million, or 64% of revenue. Verano increased its footprint in Q3 by launching seven new dispensaries throughout its primary areas. VRNOF shares closed at $12.36 on February 18th, down .41% from the previous month’s trading days.
Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc., a multi-state cannabis retailer with 113 retail locations in the United States, produces packaged cannabis products. In addition, Curaleaf International, the company’s wholly-owned subsidiary, has begun operations in Germany, with Adven GmbH providing access to medicinal cannabis products. The Select brand from Curaleaf is among the most well-known in the United States. After buying Tryke Companies in November, Curaleaf expanded its operations to three additional states. The corporation presently has properties in Arizona, Nevada, and Utah in its portfolio. Curaleaf’s cooperation with B Noble has grown to 10 states, including the medical business in New York. B Noble’s mission is to improve social equality inside the company.
Curaleaf announced $317 million in revenue for the third quarter of 2021 in November, increasing 74 percent year over year. The adjusted EBITDA for the year was $71 million, up 69 percent over the prior year. Curaleaf’s cash flow from operations in Q3 2021 was $52 million, or 16% of revenue. As a result, overall cannabis sales revenue in Q3 2021 increased by 61% year over year to $144 million. Los Suenos Farms was also purchased, increasing the company’s total cultivation capacity to 4.4 million square miles. The company will publish its Q4 and fiscal year-end 2021 profits after the market closes on March 3rd. On February 18th, CURLF shares closed at $8.59, down 6.27 percent in the previous five trading days. The stock is currently trading in a 52-week range of $6.90-$18.38 and is down 24.25% in the past six months.
Cresco Labs Inc.
Cresco Labs is a vertically integrated cannabis company based in the United States. The company is presently the top manufacturer of branded cannabis products in the United States. Cresco is the most popular marijuana brand in Illinois and Pennsylvania, according to a recent BDSA study. Cresco currently has 49 retail outlets, 20 production facilities, and 47 retail licenses throughout 11 states. Sunnyside has launched its fourth dispensary in Pennsylvania as part of its expansion plan. The Good News product line will be expanded to include new consumables and vaping options, according to the business. To boost profitability and remove third-party distribution, the business will switch to owned brand distribution in California in October. On February 7th the company opened its first location in Miami Dade, Florida, and has an upcoming Lady Lake store opening in the US.
In the third quarter of 2021, the company made $215.5 million in revenue, up 40.6 percent year over year. As a result, Cresco had a gross profit of $116.7 million, or 54.2 percent of revenue. In the most recent quarter, Cresco’s Adjusted EBITDA climbed by 24% to $56.4 million. The company predicted gross profit margins of more than 50% for the remainder of 2021, as well as Q4 sales of $235-$245 million, repeating its prior forecast. A $291 million impairment charge related to changes in intangible assets because of Cresco’s shift in strategy for its California operations was another substantial contribution to the company’s loss. CLRBF shares finished the day at $7.44, down 1.85% for the trading day. The stock is presently trading in a 52-week price range of $5.16-$16.14, showing a 25.53 percent decline in six months.