HYFM - Top Ancillary Cannabis Stocks For December 2022 Right Now
Best Ancillary Pot Stocks In The Cannabis Industry
What marijuana stocks should you buy in 2022? The ancillary marijuana stock market is one sector that has experienced sharp drops to start the year. Companies that serve the marijuana sector but do not directly handle the plant are called cannabis ancillary businesses. Many businesses typically support the cannabis sector. By offering cannabis growing supplies or having an internet presence, ancillary firms can support the cannabis sector.
The prospect of federal cannabis reform has been revived by recent events on Capitol Hill. Additionally, this might result in new banking regulations for the cannabis industry, enabling them to conduct regular business in the US. When trading in a market like this, day traders and swing traders usually make the greatest money. Some long-term investors choose to use short-term trading tactics in addition to their sizeable long-term investments in the cannabis industry. They, therefore, stand to gain from daily fluctuations in the stock price.
In the first half of 2022, the value of a few Nasdaq-listed stocks with a connection to cannabis decreased. Investors can currently purchase some of these marijuana stocks at huge discounts. Some of these stocks can offer potential cannabis investors a great place to start their long-term investments or a chance to profit from recent market changes. The top three ancillary marijuana stocks to watch in December are listed below.
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Top Ancillary Marijuana Stocks For December 2022
- GrowGeneration Corp. ( NASDAQ: GRWG )
- Hydrofarm Holdings Group, Inc. ( NASDAQ: HYFM )
- The Scotts Miracle-Gro Company ( NYSE: SMG )
GrowGeneration Corp.
GrowGeneration Corp. is renowned for operating and supplying hydroponic and organic growing facilities in the US. The company offers a variety of hydroponic, organic, and lighting alternatives for cannabis farmers. 62 organic gardening businesses are currently owned and operated by GrowGen in the US. expanding and stretching its online presence has always been a top priority for GrowGeneration.com. The website has evolved into a one-stop e-commerce destination with over 10,000 products, spanning from nutrition to lighting technology. Over the next five years, the company plans to expand across the nation by opening more than 100 locations. In the third quarter of 2021, the company will construct the largest hydroponic garden facility in Los Angeles County.
Earnings for GrowGeneration in the third quarter of 2022 were higher than expected. Revenue for the third quarter was $70.9 million, a 39% decrease from the same period in 2021. This resulted in a 279% fall in profit for Grow Gen’s third quarter of 2021, which was $4.3 million, to a net loss of $7.2 million. Revenue came in 24% beyond analyst predictions. Additionally, EPS increased by 7.7% more than experts had predicted. The revised range for revenue estimate for 2022 is now between $270 million and $280 million, up from $250 million to $275 million.
GRWG Stock Performance
On November 25 th , the shares of GRWG finished at $5.84, up 74.85% in the last month’s trading. GRWG stock is down 55.25% year to date, with a 52-week price range of $2.92-$1820. According to CNN Business analysts, GRWG stock has a 12-month median price target of $5.13 per share. This would forecast a 12.24 percent decline over the last transaction price of $5.84.
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Hydrofarm Holdings Group, Inc.
Hydrofarm Holdings Group, Inc. is well known for offering agricultural equipment and supplies for hydroponic and controlled environments. The company generally provides a wide range of cannabis-growing products. The company produces a wide variety of products, such as growth supplies, temperature control systems, and high-intensity grow lights. The business disclosed on November 1st that it has acquired New Growers Equipment, Inc., a number of ground-breaking items, and a distinctive brand. The business and AXEON Water Technology joined together in January to offer cutting-edge reverse osmosis water filtration technology and solutions.
Hydrofarm generated net sales of $74.2 million in Q3 2022 as opposed to $123.8 million in Q3 2021. Additionally, gross profit dropped from $30.0 million to $5.9 million. Gross profit after adjustments was $7.8 million as opposed to $33.0 million. In contrast to its net income of $17.3 million, or $0.37 per diluted share, the firm experienced a net loss of $(23.5) million, or $(0.52) per diluted share. Additionally, the company now projects full-year 2022 net sales of between $330 million and $347 million.
HYFM Stock Performance
HYFM Stock closed on November 25 th at $2.62 up 5.22% in the past month of trading. The stock has a 52-week price range of $1.87-$36.44 and is down 90.74% year to date. According to analysts at Tip Ranks HYFM stock has a 12-month average price target of $3.25 per share. In this case, this would be an increase of 33.59% from its last trading level of $2.62.
[Read More] Best Marijuana Stocks To Watch In December Right Now
The Scotts Miracle-Gro Company
Scotts Miracle-Gro, the world’s largest manufacturer of brand-name consumer lawn and garden products, has entered the cannabis business. The company’s wholly-owned subsidiary, Hawthorne Gardening, offers hydroponic tools, lighting, and fertilizers for cannabis development. Scotts expanded the Hawthorne line in January by including True Liberty Bags and Luxx Lighting. The acquisition will enhance Hawthorne’s already strong lighting lineup. Hawthorne has kept its full-year projection unchanged despite a decrease in revenue.
Scotts reported company-wide Q4 2022 sales that fell 33% to $493.6 million. Sales for the U.S. consumer segment fell by 18% to $302.1 million from $369.4 million. Sales for the Hawthorne section fell by 49 percent, from $329.1 million in the same period last year to $168.5 million this year. The dividend payment date for Scotts is December 9th, with shareholders getting $0.66 per share. Based on this payout, the dividend yield will be 4.9%, which is still higher than the sector average.
SMG Stock Performance
SMG stock closed at $55.55 on November 25 th up 17.54% in the last month. Currently, the stock has a 52-week price range of $39.06-$167.09 and is down 65.50% year to date. According to analysts at Tip Ranks SMG stock has a 12-month price target of $53.14 per share. This forecast represents a decrease of 4.34% from its last trading price of $55.55.
Best Ancillary Cannabis Stocks For December Watchlist
In November, these top cannabis stocks reached new lows; whenever they start to rise again, investors might find value in the stocks. Examine a company’s financial records and most current press releases to see if an asset is a good fit for your trading strategy and portfolio. Making better trading decisions can be aided by an understanding of technical indicators and chart patterns. One of the most interesting things to watch in December maybe these top cannabis stocks with connections to cannabis production.