Best Cannabis Stocks To Watch In A Down Market
Are you looking for the best marijuana stocks to invest in as the market hits new lows in June? The top cannabis stocks to watch might hit new lows this week as the general market falls. As federal marijuana legalization continues to be postponed, most of the cannabis sector is expected to decline in 2022. Despite the fact that US MSOs generated a modest revenue increase in the first quarter of 2022, this did not convert into market gains. As a result, many cannabis investors have continued trading US pot stocks on a short-term basis.
When it comes to trading in a market like this one, day traders and swing traders tend to make the most money. Some long-term cannabis investors choose to use short-term techniques to trade around their long-term core assets. As the stock’s price swings every day, this allows them to capitalize.
Regardless of the fact that nothing has been done at the federal level to legalize cannabis, the industry has grown rapidly across the states. MSOs in the United States have recently outperformed all other revenue earners in the world. They have done better than Canadian LPs since the pandemic. Let’s take a look at three of the best marijuana stocks in the United States right now, as the market hits new lows in June.
Top US Marijuana Stocks To Watch This Week In June
- Trulieve Cannabis Corp. (OTC: TCNNF)
- Curaleaf Holdings, Inc. (OTC: CURLF)
- Cresco Labs Inc. (OTC: CRLBF)
Trulieve Cannabis Corp.
Trulieve Cannabis Corp. is a high-performing cannabis company with operations in 11 states and Florida’s biggest market share. In April, the company established its 115th dispensary in the state. The company is one of the market leaders in the United States, with 164 retail dispensaries. In addition, the company has a 4 million square foot cultivation and processing capacity. Trulieve has been granted a production license in Georgia, allowing it to expand its presence in the Southeast cannabis industry. In addition, the company opened its first dispensary in Massachusetts, laying the groundwork for future expansion. The business purchased a 64,00 square foot growing facility in Phoenix on February 15th, boosting its production capacity in the southwest. In April the company closed the acquisition of Greenhouse Wellness West Virginia Dispensaries LLC expanding its presence in West Virginia.
Trulieve kicked off the year on May 12th with a first-quarter 2022 performance that set a new high. In the first quarter of 2022, the company recorded record revenues of $318.3 million, up 64 percent year over year. The company generated $45.1 million in cash flow from operations in the first quarter of 2022, with a cash balance of $267 million. The company now has a 164-dispensary retail network and a cultivation and processing capacity of over 4 million square feet. Trulieve made $178.2 million in gross profit in the first quarter of 2022, with a GAAP gross margin of 56 percent. Importantly, the company’s net loss increased by 55 percent from the prior quarter to $32 million. The company’s Adjusted EBITDA was $105.5 million in Q1 2022 or 33.2 percent of revenue.
TCNNF Stock Performance
TCNNF stock closed on June 10th at $14.02 down 4.31% in the past five trading days. Currently, the stock has a 52-week price range of $12.72-$40.22 and is down 46.11% year to date. According to analysts at Tip Ranks TCNNF stock has a 12-month average price target of $50.21 per share. In this case, this represents an upside of 258.18% from its last trading price of $14.02.
Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc., a multi-state cannabis retailer with 133 retail locations in the United States, produces packaged cannabis products. Adven GmbH, a wholly-owned subsidiary of Curaleaf International, has commenced marketing medicinal cannabis products in Germany. Curaleaf’s Select brand is one of the most well-known in the United States. Curaleaf extended its operations to three more states after purchasing Tryke Companies in November. The company’s current portfolio includes properties in Arizona, Nevada, and Utah. On May 6th, the company opened its 50th location in Florida. Matt Darin will take over as CEO of Curaleaf, the company announced in May.
On May 9th, the company reported first-quarter 2022 results, with revenues of $313 million, up 20% year over year. In addition, in the first quarter of 2022, Adjusted EBITDA was $73 million, and cash flow from operations was $57.4 million. Los Suenos Farms was also purchased, increasing the company’s total cultivation capacity to 4.4 million square miles. In New Jersey, Curaleaf is a well-known cannabis dispensary.
CURLF Stock Performance
On June 10th CURLF shares closed at $6.05, up 9.01% in the last month of trading. The stock is currently trading in a 52-week range of $5.08-$15.02 and is down 32.78% year to date. According to analysts at Tip Ranks CURLF stock has a 12-month average price target of $13.66 per share. In this case, this would represent an upside of 125.79% from its last trading price of $6.05.
Cresco Labs Inc.
Cresco Labs is a cannabis company based in the United States with a vertically integrated business structure. The company is presently the top manufacturer of branded cannabis products in the United States. Cresco is the most favored marijuana brand in Illinois and Pennsylvania, according to a BDSA poll. Cresco operates in 11 states and has 50 retail outlets, 20 production facilities, and 47 retail licenses. 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 company will transition to owned brand distribution in California.
In the first quarter, the company generated $214 million in sales, up 20% year over year. Furthermore, when fair value mark-up for acquired products is removed, gross profit is $113 million, or 53% of revenue, up 29% year over year. In the first quarter, adjusted EBITDA was $51 million, or 24 percent of revenue, increasing 45 percent year over year. Retail revenue increased 44% year over year to $119 million, or $2.5 million per average shop open during the quarter, with same-store sales up 9%.
At the conclusion of the quarter, Cresco had $179 million in cash on hand and had opened four new retail sites, three in Florida and one in Pennsylvania, for a total of 50. In addition, in the first quarter, the company launched its branded product line in Florida, which includes High Supply®, Good News®, RemediTM, and Sunnyside* Chews. Columbia Care Inc. (OTC: CCHWF) was recently acquired by Cresco, valuing it at $2 billion and establishing it as the new cannabis sector leader.
CRLBF Stock Performance
CRLBF shares finished on June 10th at $3.45, down 5.55% for the last five trading days. The stock is presently trading in a 52-week price range of $3.27-$11.947, showing a 47.53 percent decline year to date. According to analysts at CNN Business CRLBF stock has a 12-month median price target of $11.95 per share. In this case, this represents an upside of 246.47% from its last trading price of $3.45.
Finding The Top Cannabis Stocks For Active Trading
Now that the leading US marijuana stocks have started to decline in recent trading sessions, it may be time to keep a watch on them. Examining a company’s financial statements and news releases could help you figure out which assets are best for your portfolio and trading style. Learning to read chart patterns and technical indicators could help you make more informed market decisions. The recent volatility in the cannabis market may present an opportunity for active traders in June.