GRWG - Marijuana Stocks To Watch As The DEA Works To Reschedule Cannabis
2024-05-03 09:07:13 ET
This Is How Marijuana Stocks Can Benefit From New Reform Measures
The big focus for marijuana stocks and the cannabis industry is reform. Right now there is a major uproar about the recent announcement from the DEA about rescheduling cannabis. The DEA has agreed that they will reschedule cannabis to a class 3. Now at first, this came as a shock as this has been a hard-fought battle. At this time it also created a rise in trading for most marijuana stocks.
But as people begin to take a closer look at what this means is it a win? So to some degree, yes bringing cannabis down from a Schedule 1 substance to a Class 3 is huge. However, as a possible class 3 substance, it would put cannabis in the bracket where big pharma controls it. A better explanation is that substances within the Schedule III classification have a lower risk for potential abuse than Schedule I or II. Drugs within this classification are typically considered safe if used under medical supervision.
They can typically be found at pharmacies if a patient has a prescription, but they are not available over the counter. This is where it makes it tough for current and future cannabis operators. Nevertheless, it also creates a situation that leads more people to invest and find the best marijuana stocks to buy. If cannabis does become class 3 some may feel safer to invest knowing that marijuana is less of a threat to the federal government. Below are some marijuana stocks to watch if this reform measure gets passed.
Top Marijuana Stocks To Watch In May
- GrowGeneration Corp. ( NASDAQ:GRWG )
- The Scotts Miracle-Gro Company ( NYSE:SMG )
- Hydrofarm Holdings Group, Inc. ( NASDAQ:HYFM )
GrowGeneration Corp.
GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. In recent news, the company announced a change to its board of directors.
Paul Ciasullo is retiring and therefore resigning from the Company’s Board. In conjunction with this announcement, Starlett (Star) Carter has been appointed to the Board, effective April 25, 2024.
Words From The CEO
Darren Lampert, GrowGeneration’s Co-Founder, Chief Executive Officer, and Chairman of the Board, said, “On behalf of the Board of Directors and the GrowGen management team, we would like to thank Paul for the dedication, insight, and expertise he contributed to the Board and the Company during his tenure. We wish him well in his future endeavors.”
The Scotts Miracle-Gro Company
The Scotts Miracle-Gro Company, together with its subsidiaries, manufactures, markets, and sells products for lawn, garden care, and indoor and hydroponic gardening in the United States and internationally.
It operates through three segments: U.S. Consumer, Hawthorne, and Other. At the start of May, the company reported its Q2 2024 earnings.
[Read More] Top Marijuana Stocks for May 2024: What to Watch
Q2 2024 Financial Highlights
- Strong first half 2024 execution has Company on pace for full-year targets
- U.S. Consumer second quarter net sales of $1.38B equal record high
- Q2 2024 GAAP gross margin of 30.4% and non-GAAP adjusted gross margin of 35.3% reflect 350 and 60 basis point improvements, respectively
- Strong free cash flow delivers net leverage of 6.95x, well below the covenant maximum
- Q2 2024 GAAP EPS of $2.74; non-GAAP Adjusted EPS of $3.69 are ahead of plan
- Teams driving consumer engagement in Q3 representing 60 percent of seasonal POS
[Read More] May 2024 Watchlist: Leading Canadian Cannabis Stocks Poised for Growth
Hydrofarm Holdings Group, Inc.
Hydrofarm Holdings Group, Inc., together with its subsidiaries, manufactures and distributes controlled environment agriculture (CEA) equipment and supplies in the United States and Canada.
On April 30th the company announced it would report its first quarter 2024 results on May 14th, 2024.