AYRWF - US Cannabis Industry Hot Picks: 3 Top Marijuana Stocks for July 2023
2023-07-20 17:30:37 ET
Uncovering July 2023’s Top 3 Marijuana Stocks in the US Market
As the cannabis sector and top marijuana stocks in the United States continue to grow and expand rapidly, investors are closely monitoring the market’s leading marijuana stocks. Since July 2023, the value and potential of these companies have been increasing considerably as legislative developments and growing public acceptance propel the cannabis market to new heights. In this article, we examine the top marijuana stocks in the United States and analyze their present market momentum, highlighting the key factors driving their success and providing insights into their future possibilities.
Significant developments have occurred in the cannabis legalization environment in recent years. With an increasing number of states legalizing both medicinal and recreational marijuana, the industry has piqued the interest of investors looking for profitable opportunities. Furthermore, legislators recognize the economic and social benefits of a regulated cannabis market, propelling the push for federal legalization.
Certain marijuana stocks in the United States have risen to the top of the industry, grabbing the market and producing astounding results. To increase market share and deliver value to their shareholders, these companies have effectively navigated the complicated web of regulations, embraced technological advancements, and developed robust business models.
Against this context, the top US marijuana stocks will hit a significant milestone in July 2023, demonstrating outstanding momentum. Because of a mix of positive legislative reforms, expanding product portfolios, and growing consumer demand, these companies have managed to stay at the forefront of the industry, establishing themselves as the go-to investment options for anyone seeking exposure to the cannabis market.
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July 2023’s Top Marijuana Stocks in the US Cannabis Industry
- Green Thumb Industries Inc. ( OTC: GTBIF )
- Trulieve Cannabis Corp. ( OTC: TCNNF )
- Ayr Wellness Inc. ( OTC: AYRWF )
Green Thumb Industries Inc.
Green Thumb Industries Inc. is a key player in the cannabis consumer packaged goods (CPG) market in the United States. There are currently 83 Green Thumb sites throughout 14 states. GTI will soon have 111 retail licenses, with more on the way. According to the terms of the first agreement with the privately held Cookies Brand, GTI will open a Cookies on the Las Vegas Strip in 2021. Following the successful acquisition of Dharma Pharmaceuticals, Green Thumb has announced the debut of its marijuana company in Virginia. By acquiring Leafline Industries, the company expanded into Minnesota. On July 1st, the firm began selling adult-use cannabis in four Maryland locations.
Green Thumb’s revenue increased 2.4% year on year to $248.50 million in the first quarter of 2023. Compared to the first quarter of 2022, overall retail revenue increased by 9.4%. On a base of 73 locations, first-quarter 2023 comparable sales (stores open at least 12 months) rose 6.3% over the same period the previous year. Gross sales of consumer-packaged products grew 4.3% from the first quarter of 2022. Furthermore, gross profit was $124.7 million, or 50.2% of revenue, in the first quarter of 2023, compared to $122.9 million, or 50.7%, in the same period the previous year. Price compression was the primary cause of the fall in gross margin.
GTBIF Stock Performance
On July 20 th , GTBIF shares finished at $7.12, down 6.08% in the trading month. The stock has a 52-week price range of $6.60-$16.50 and is down 17.82% year to date. According to analysts at CNN Business, GTBIF stock has a 12-month average price target of $16.93 per share. In this case, this would represent an increase of 138.40% from its last trading price of $7.12.
Trulieve Cannabis Corp.
Trulieve Cannabis Inc., which operates in eleven states, controls most of the Florida market. The company dominates the cannabis sector in America, with 186 retail locations. The facility’s processing and expansion space totals 4 million square feet. Trulieve’s position in the Southeast cannabis business has benefited from the most recent Georgia production license. The company opened its first dispensary in Massachusetts, laying the framework for future expansion. In early February, the business purchased a 64,00 square foot growing facility near Phoenix to expand its manufacturing capacity in the southwest. The company purchased Greenhouse Wellness West Virginia Dispensaries LLC in April, increasing its geographic footprint in West Virginia.
In the first quarter of 2023, the corporation generated $289 million in revenue, with retail sales accounting for 95% of total profits. Trulieve also had a 52% GAAP gross margin and a $150 million profit. The corporation sustained a financial loss of $64 million. The $21 million* adjusted net loss removes non-recurring costs, asset impairments, disposals, and discontinued activities. Trulieve now has 186 retail locations in the United States and a processing capacity of more than 4 million square feet. The company will release its second quarter 2023 results on August 8 th after the market close.
Since the middle of 2022, Trulieve has aggressively decreased cash and margin-diluting assets, restructured operations, and reallocated resources to promising sectors with long-term development potential. Efforts have included suspending certain California retail assets, withdrawal from the Nevada wholesale market, and idle manufacturing capacity to meet consumer demand across many locations.
TCNNF Stock Performance
TCNNF stock closed on July 20 th at $4.35, up 8% in the last month of trading. The stock has a 52-week price range of $3.73-$16.11 and is down 42.93% year to date. According to analysts at Tip Ranks, TCNNF stock has a 12-month average price target of $13.76 per share. In this case, this represents an upside of 218.51% from its last trading price of $4.35.
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Ayr Wellness Inc.
Ayr Wellness Inc. is a well-known Florida cannabis company. Sixty three of the company’s 86 marijuana-related firms are based in Florida. To expand in Illinois, the company purchased Herbal Remedies Dispensaries, LLC. In July, AYR opened three new retail locations in Florida, bringing its total to 63. The Company will release its second quarter 2023 results on August 17th before the market opens.
Revenue increased 18% year on year to $117.7 million in the first quarter of 2023, according to AYR data, up 3% sequentially. Furthermore, Adjusted EBITDA increased 64% year on year to $26.3 million and 9% sequentially (GAAP loss from operations increased to $21.7 million from $21.0 million in Q1/22). Since the start of 2023, the company has launched seven new sites in Florida, bringing the total number of dispensaries in the state to 60. In 2023, the company aims to establish ten more stores, increasing the total number of outlets to 70 by the end of the year.
The Company estimates that revenue and Adjusted EBITDA will expand in line with Q1 sequential growth patterns in the second quarter. AYR further reiterates its expectation of positive operating cash flow in 2023. However, operating cash flow trends will not be linear due to the timing of tax payments.
AYRWF Stock Performance
AYRWF stock closed on July 20 th at $1.00, up 18.86% in the last trading month. The stock has a 52-week price range of $0.5660-$5.88 and is down 13.33% year to date. According to analysts at CNN Business, AYRWF stock has a 12-month average price target of $5.53 per share. In this case, this would represent an upside of 431.65% from the last price of $1.00.
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Evaluating Growth Potential: Top US Pot Stocks and 2023 Investing
In general, the US cannabis industry is well-positioned for future growth and profitable investment opportunities. Overall, the top cannabis stocks have established themselves as market leaders, leveraging their strong financial performance and strategic positioning to capitalize on the evolving legal situation. These companies are well-positioned to experience significant growth in the coming year, owing to potential catalysts like regulatory developments, federal legalization efforts, and advancements in cannabis research.
Staying informed on the latest industry trends and understanding the factors that drive stock performance is critical as investors navigate the complexity of the cannabis market. In addition, investors can make informed decisions that match their investing goals and risk tolerance by closely monitoring the top US cannabis stocks and tracking possible catalysts.
While the cannabis sector has intriguing potential, investors must approach it cautiously and conduct thorough research before investing. Volatility in the market, regulatory uncertainty, and other hazards are inherent in the sector. However, for those willing to properly assess the situation and stay informed, the US cannabis sector has the potential for huge rewards as it matures and receives general acceptance in 2023 and beyond.