Could These Pot Stocks Continue An Uptrend Next Week?
Best Cannabis Stocks With Upside This Month
Are the best marijuana stocks currently on your watchlist? After it became known that Schumer had formally proposed the CAOA in the Senate, a number of the top cannabis stocks to watch saw a rise in price. August may see continued growth for the cannabis industry as Congress continues to work on legislation to legalize marijuana.
As the battle for reform and legalization of the US cannabis industry continues, there seem to be some advances in Congress. Sen. Cory Booker recently said that he would be willing to support a SAFE Banking act that included provisions for criminal justice reform and marijuana business banking. In fact, the SAFE Banking Act has repeatedly passed through the House but is stalled in the Senate. Legal cannabis businesses would be able to deal with the American banking system thanks to this law.
Numerous active traders are currently opening positions in some of the top marijuana stocks by taking advantage of the lower price points. It’s likely that the cannabis industry is getting ready for a potential August surge. Let’s examine three of the top marijuana stocks on your list in more detail the following week as the overall markets continue to trend upward.
Power REIT (PW)
Power REIT’s primary objective is to become a real estate investment trust that focuses on long-term investments with superior risk-adjusted returns. More greenhouses and processing facilities are currently an addition to Power REIT’s portfolio of CEA buildings. In general, the leases for the buildings have been taken over by tenants who have been given the authorization to grow medical marijuana on the property. Power REIT will use the money to finish making the required upgrades to the assets that are ready for development. Power REIT owns greenhouse facilities with space for future growth.
PW delivered a business update on August 12 that demonstrated consistent quarterly FFO with room for sizable internal development. In more detail, the Trust reported a Core FFO of $0.41 per share for the second quarter of 2022 as opposed to a Core FFO of $0.51 for the corresponding period in 2021. The company’s portfolio includes 112 miles of railroad land, 7 solar farm ground leases totaling 601 acres, and 22 controlled environment agriculture (CEA) facilities in the form of greenhouses totaling more than 2.2 million square feet.
PW Stock Performance
PW stock closed on August 19th at $19.61 up 33.86% for the past five trading days. Currently, the stock has a 52-week price range of $11.04-$81.99 and is down 71.74% year to date. According to analysts at CNN Business PW stock has a consensus price target of $44 per share. In this case, this would represent an upside of 124.72% from its last trading price of $19.61.
Hydrofarm Holdings Group, Inc.
Hydrofarm Holdings Group, Inc. is a well-known reseller of hydroponic and controlled-environment agriculture supplies and instruments. Generally, the business offers a large selection of cannabis-growing products. The company manufactures a range of goods, including growing supplies, temperature control systems, and high-intensity grow lights. On November 1st, the business announced that it had successfully acquired Innovative Growers Equipment, Inc., a variety of cutting-edge products, and a smart brand. In order to provide cutting-edge reverse osmosis water filtration technology and solutions, the company partnered with AXEON Water Technology in January.
The company’s second-quarter 2022 results, from August 9, showed a drop in net revenues to $97.5 million from $133.8 million. Additionally, the gross profit dropped from $29.6 million to $7.3 million. After corrections, gross profit rose from $9.1 million to $30.2 million. In contrast to its net gain of $2.3 million, or $0.05 per diluted share, Hydrofarm had a net loss of $203.3 million, or a negative $4.53 per diluted share. As a result, an inventory reserve of $10.2 million and a non-cash charge for goodwill impairment of $189.6 million was included in the second quarter of 2022’s net loss. Net revenues are anticipated to range between $330 million and $347 million for the whole year. With adjusted EBITDA between $(25) million and $(16) million.
HYFM Stock Performance
HYFM Stock closed on August 19th at $4.25 up 10.39% in the past five trading days. The stock has a 52-week price range of $2.27-$56.31 and is down 84.98% year to date. According to analysts at CNN Business HYFM stock has a 12-month average price target of $3.88 per share. In this case, this would be a decrease of 8.82% from its last trading level of $4.25.
Canopy Growth Corporation
Canopy Growth has built a strong reputation as one of Canada’s top producers and distributors of cannabis and products made from it. Generally, the company primarily markets its cannabis and hemp-based goods in Canada, the US, and Germany. CBD beverages will be introduced in the US in 2021 thanks to a partnership between Canopy and Southern Glazers Wine & Spirits. To increase the variety of products it distributes in Canada, Canopy acquired Supreme Cannabis Company, Inc., a premium cannabis business. The Martha Stewart CBD subsidiary increased its supply of Tropical CBD Wellness Gummies in March.
Results for the company’s first quarter of fiscal 2023 were made public on August 5. Details show that net sales, which was $110 million in the first quarter of FY2023, fell by 19% from FY2022. A planned business transition to focus on higher margin, premium, and mainstream products. Unfortunately, resulted in a decline in value flower sales in the Canadian recreational cannabis market. This contributed to the $66 million in Q1 FY2023 total global cannabis net revenue. Which represented a 29% decrease from Q1 FY2022 and was partly responsible for this decline. The $2,088 million net loss in the first quarter of FY2023—an increase of $2,478 million over the first quarter of FY2022—was primarily due to non-cash fair value adjustments and a $1,725 million impairment of goodwill.
The corporation wants to improve its standing in Canada’s high-end industries for the 2023 fiscal year. The company also intends to advertise its products abroad, particularly in the leisure industry in Canada. The Company estimates that these operations will provide positive Adjusted EBITDA in FY2024, with the exception of costs related to U.S. THC.
CGC Stock Performance
CGC stock closed at 3.82 on August 19th up 46.36% in the past month of trading. Currently, the stock has a 52-week price range of $2.13-$18.00 down 56.24% year to date. According to analysts at CNN Business CGC stock has a 12-month median price target of $2.50 per share. in this case, the estimate would be a 34.73% decline from its last trading price of $3.82.
Making Better Investments And Trades With Cannabis Stocks
Finding the companies with the best cannabis stocks can be accomplished by looking at a company’s financials and press releases. It’s critical to fully research a company before considering a position. To execute trades that are more profitable, you might be able to employ technical indicators and chart patterns more effectively. Due to the cannabis industry’s rapid domestic and global expansion, short-term traders may benefit from the current market conditions. During a downturn, you might find it helpful to familiarize yourself with a range of trading strategies. The fourth week of August 2022 is the ideal time to add marijuana stocks to your watchlist.
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