Top Marijuana Stocks For 2022
With the market experiencing a significant downside to start the week top marijuana stocks continue to trade at lower levels. For cannabis investors, this downtrend has persisted almost a year and is mostly associated with the delays in US federal marijuana legalization and decriminalization. But lower cannabis stock prices could be an opportunity for traders looking to invest in the cannabis industry.
One area that is experiencing substantial growth in the next five years is the US cannabis market. According to a recent report from New Frontier Data retail marijuana sales in the United States are forecast to reach $43 billion in 2025. In 2021 legal sales of cannabis are around $25 billion showing substantial growth potential in the US market. As the US expands rapidly there are many leading cannabis companies that have grown alongside the market.
In 2021 these companies delivered strong revenue growth that never translated into gains in the market. In addition, they grew significantly using mergers and acquisitions to establish a larger presence. As new states establish legal medical and recreational cannabis markets the next few years could have significant future growth potential. Another factor that could spark some upside for cannabis stocks in 2022 is any mention of Congress passing some form of cannabis reform laws.
Learning To Invest And Make Better Trades With Pot Stocks
Before investing in top marijuana stocks, it’s important to research these companies. Looking into a company’s earnings and press releases can help you find the companies with the most future potential. Additionally studying how a stock performs in the market can allow you to establish the best positions for your trades. Learning how to use trading tools to identify favorable trades is a good way to become a successful investor. As the US cannabis market continues its rapid growth let’s look at 2 of the best US cannabis stocks for your list in January.
Top Marijuana Stocks To Watch In January 2022
Trulieve Cannabis Corp.
Trulieve Cannabis Corp. is a high-performing cannabis company with the largest presence in Florida, with a market share of around 46%. On December 8th, the company opened its 112th dispensary in the state. Harvest Health & Recreation Inc. was bought, and revenue in 2021 is estimated to surpass $1.2 billion. The company is presently the industry leader in the United States, with 158 retail locations. In addition, the company has a 3.5 million square foot cultivation and processing capacity. Trulieve has secured a Georgia manufacturing license, allowing it to increase its presence in the Southeast cannabis market. Furthermore, the company opened its first dispensary in Massachusetts, laying the groundwork for future expansion. President Steve White, Vice President and General Counsel Nicole Stanton, Director of Investor Relations Christine Hersey, and Senior Director of Corporate Communications Rob Kremer were among the executives hired by Trulieve to close out 2021.
On January 10th, Trulieve launched Live Diamonds, a hydrocarbon extraction product that is the first of its type in Florida. In November, Trulieve announced its third-quarter 2021 results, marking the company’s 15th consecutive profitable quarter. The company’s net revenues increased by 64% to $224.1 million over the previous year. As a result, Trulieve made a gross profit of $153.9 million, with a gross margin of 68.7%. The adjusted EBITDA for the firm was $98 million, or 43.7 percent of revenue. In West Virginia, the company launched its agricultural activities and opened its first dispensaries.
TCNNF Stock Performance
TCNNF stock is trading on January 18th at $24.96 up 5.61% in the last month. Currently, the stock has a 52-week price range of $23.10-$53.73 and is down 29.05% in the last six months. According to analysts at Tip Ranks TCNNF stock has a 12-month median price target of $67.80 per share. This forecast represents an upside of 171.63% from its last trading price of $24.96.
Ayr Wellness Inc.
Ayr Wellness Inc. is a Florida-based cannabis enterprise with a huge footprint. The company currently has a total of 61 facilities around the country, including 44 dispensaries in Florida. Herbal Remedies Dispensaries, LLC was also another acquisition, giving the corporation access to the Illinois market. A temporary license to sell adult-use cannabis in Massachusetts dispensaries has been given to Ayr. In October, the Kynd premium flower brand was launched in Arizona. The company recently opened its sixth affiliated operating dispensary in Pennsylvania. In December, Ayr received approval to open its 86,000 square foot Arizona growing and manufacturing facility.
In November, Ayr announced profitability for the third quarter of 2021, with revenues of $96.2 million, up 111 % year over year. Overall, the company’s adjusted EBITDA improved by 40% to $26 million year over year. Under US GAAP, Ayr reported an operating loss of $8.9 million, which includes a $34.9 million one-time charge and $8.9 million in non-operating adjustments. Furthermore, the company predicted a 10% sequential growth in Q4 2021, as well as a level Adjusted EBITDA from Q3 to Q4. Ayr’s adjusted EBITDA forecast for 2022 is now $250-$300 million, while its sales objective of $800 million has remained maintained. In 2022 the company expects to open at least 21 additional stores in prime locations.
AYRWF Stock Performance
AYRWF stock is trading on January 18th at $16.70 up 6.65% in the past five trading days. Currently, the stock has a 52-week price range of $12.16-$37.50 and is down 43.30% in the last six months. According to analysts at Tip Ranks AYRWF stock has a 12-month average price target of $37.98 per share. In essence, this would represent an upside of 127.83% from its last trading price of $16.70.