GLASF - Best US Marijuana Stocks for September 2023
2023-09-05 14:00:00 ET
Cannabis Capital: Spotlight on Leading US Marijuana Stocks in September 2023
The cannabis industry in the United States continues developing and profiting, making it an appealing sector for investors. As September 2023 approaches, it’s critical to watch the top marijuana stocks ready for substantial increases. With changing legislation and growing public acceptability, the marijuana sector in the United States provides an attractive scenario for investors.
The marijuana industry is on an upward trajectory, with a projected yearly growth rate of more than 20% in the following years. This predicted growth is being driven by both medical and recreational cannabis demand, as well as changing state laws. Day trading and swing trading tactics have gained popularity in the sector to maximize potential gains, with many investors employing technical analysis to pinpoint optimal entry and exit positions.
Investors increasingly turn to technical analysis tools like moving averages, RSI indicators, and chart patterns to refine their trading techniques. Shrewd traders can identify the finest opportunities in the ever-changing marijuana industry by combining fundamental analysis with technical expertise. As we look at the best US marijuana stocks for September 2023 , the ability to analyze trends and execute timely transactions may be critical to unlocking the sector’s growth potential.
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Top US Marijuana Stocks to Watch in September 2023
- Ayr Wellness Inc. ( OTC: AYRWF )
- Glass House Brands Inc. ( OTC: GLASF )
- Verano Holdings Corp. ( OTC: VRNOF )
Ayr Wellness Inc.
Ayr Wellness Inc. is a well-known Florida cannabis company. Sixty of the company’s 70 marijuana-related companies are based in Florida. To expand in Illinois, the company purchased Herbal Remedies Dispensaries, LLC. Adult marijuana use can potentially boost the desirability of Ayr, Massachusetts companies. In Pennsylvania, the business has opened its sixth linked dispensary. Ayr intended to open its 86,000-square-foot processing and growing plant in December after receiving regulatory certification from Arizona. By acquiring Levia Cannabis Infused Seltzer in 2022, the firm made a significant investment in the beverage market.
Second Quarter 2023 Highlights
- Revenue up 18% Y/Y to $116.7 Million, Excluding Discontinued Operations
- Company Delivers Record Adjusted EBITDA1 of $29.4 Million, up 78% Y/Y, 12% Sequentially, with Adjusted EBITDA Margin of 25%
- GAAP Loss from Operations Improved 81% Y/Y, 79% Sequentially to $(4.5) Million, Excluding Discontinued Operations
Outlook
The Company remains committed to its financial health and is positioning itself to achieve sustainable long-term growth and profitability across all markets of operation. AYR expects to generate revenue and Adjusted EBITDA growth in the second half of 2023 and into 2024 and to generate positive GAAP cash flow from operations for the calendar year 2023.
AYR’s expectations for future results are based on the assumptions and risks detailed in its Management’s Discussion and Analysis (“MD&A”) for the period ended June 30, 2023, as filed on SEDAR+ and with the U.S. Securities and Exchange Commission (“SEC”).
AYRWF Stock Performance
AYRWF stock closed on September 1 st at $1.47, up 84.91% in the last week of trading. The stock has a 52-week price range of $0.5660-$4.41 and is up 22.50% year to date. According to analysts at CNN Business, AYRWF stock has a 12-month average price target of $5.50 per share. In this case, this would represent an upside of 274.15% from the last price of $1.47.
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Glass House Brands Inc.
Glass House Brands Inc., a vertically integrated hemp and cannabis firm, serves one of the fastest-growing industries in the country. The company concentrates on the California market, where it creates distinct eco-friendly brands to fulfill the needs of consumers in a wide range of industries. Some of the company’s well-known goods include Mama Sue Wellness, Glass House Farms, and Forbidden Flowers. The firm plans to invest in a 5.5 million square foot greenhouse in Southern California in September 2021. Mark Vendetti is the new company’s chief financial officer. PLUS, a well-known California edibles company, was purchased for $25.6 million in December.
Second Quarter 2023 Highlights
(Unless otherwise stated, all results and dollar references are in U.S. dollars.)
- Net Sales of $44.7 million increased 171% from $16.5 million in Q2 2022 and up 54% sequentially from $29.0 million in Q1 2023;
- Gross Profit was $24.4 million compared to $0.3 million in Q2 2022 and $12.0 million in Q1 2023;
- Gross Margin was 55%, compared to 2% in Q2 2022 and 41% in Q1 2023;
- Adjusted EBITDA1 was $9.5 million, compared to $(9.8) million in Q2 2022 and $(0.1) million in Q1 2023;
- Cost per Equivalent Dry Pound of Production3 was $139, a decrease of 12% compared to the same period last year and down 29% sequentially versus Q1 2023;
- Equivalent Dry Pound Production2 was 103,336 pounds, up 311% year-over-year and up 115% sequentially;
- The cash balance was $22.7 million at quarter-end, up 39% from Q1 2023.
Q3 2023 Outlook
We expect Q3 2023 revenue to be between $45 million and $47 million. The increase vs. Q2 2023 is being driven by projected low-to-mid single-digit percent growth in wholesale biomass revenue, with pricing projected to increase slightly to above the Q2 2023 average selling price of $340 per pound as a seasonally favorable increase in the percentage of flowers and smalls relative to trim offsets a seasonal dip in prices due to increased summer output from outdoor and mixed light farms.
GLASF Stock Performance
GLASF stock ended at $4.50 on September 1 st , up 20.32% in the last week of trading. In this case, the stock has been trading in a 52-week range of $1.78-$4.65. GLASF stock is up 135.60% year to date.
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Verano Holdings Corp.
Verano Holdings Corp., established in the United States, is a multi-state, vertically integrated cannabis firm. Under a number of brand names, the company distributes high-end cannabis products. Verano has 14 manufacturing and processing units, 129 dispensaries, and 13 states. Regardless, the company has 63 sites in Florida and is well-known throughout the state. Two of the company’s retail brands, Zen LeafTM and MÜVTM, operate dispensaries catering to medicinal and recreational customers. On June 1st, the firm established its 68th location in Florida, in Miami Kendall.
Second Quarter 2023 Financial Highlights
- Revenue of $234 million increased 5% year-over-year and increased 3% versus the prior quarter.
- Gross profit of $115 million or 49% of revenue.
- SG&A expense of $85 million or 36% of revenue.
- Net loss of $(13) million.
- Adjusted EBITDA2 of $72 million or 31% of revenue.
- Cash flow from operations of $24 million for the quarter.
- Capital expenditures of $8 million for the quarter.
- Free Cash Flow1 of $16 million for the quarter.
VRNOF Stock Performance
VRNOF shares closed at $3.75 on September 1 st , up 42.59 in the past week of trading. The stock has a 52-week price range of $2.53-$6.61 and is up 20.19% year to date. In this case, analysts at Tip Ranks, VRNOF stock has a 12-month average price target of $10.18 per share. This would represent an increase of 171.47% from its last trading price of $3.75.
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US Marijuana Stocks Poised for Growth in September 2023
In conclusion, as we enter September 2023, the US marijuana industry stands as a compelling arena for investors seeking growth opportunities. With the cannabis market projected to maintain its impressive growth trajectory, it’s essential to keep a watchful eye on the top US marijuana stocks. In general, these companies are poised to benefit from evolving legislation and increasing acceptance of cannabis use for medical and recreational purposes.
To maximize the potential of investing in the US cannabis sector, traders are adopting various strategies, including day trading and swing trading. Incorporating technical analysis tools, such as moving averages and RSI indicators, allows investors to make well-informed decisions regarding entry and exit points. In addition, as the industry matures, those who can adeptly navigate its dynamic landscape stand to reap the rewards of this budding market. So, whether you’re a seasoned investor or just starting, consider including some of these top US marijuana stocks in your portfolio as we move further into 2023.