Best Cannabis Stocks for Q1 2022
With major marijuana stocks starting the year setting new 52-week lows, is it time for a watchlist? Right now, the best cannabis stocks to invest in have apparently priced in the possibility of not achieving federal legalization of marijuana in 2022. Because of this, we could see cannabis stocks start trading on earnings and other fundamentals throughout the year. One sector of the market that continues to perform at a high level is US MSOs and leading companies.
With many analysts predicting that this year will be more volatile than last year, cannabis stocks could experience significant market volatility. In general, therefore, it is important to find a good entry point if you plan to invest. In the United States, the cannabis industry has grown rapidly, with companies using mergers and acquisitions to expand rapidly. In addition, these companies continued to show strong revenue growth throughout the year.
Currently, US states like Michigan saw strong cannabis sales in December. In fact, adult-use cannabis sales increased 119% year-over-year to $135 million. This growth trend is expected to continue as new states establish new markets for medical and adult use in the United States. As marijuana stocks continue to drop in the market, making a watchlist of the best marijuana stocks to buy could have future potential.
Finding the Best Pot Stocks to Trade for 2022
Before investing in the best cannabis stocks, it’s important to do your own research and review a company’s financials, press releases, and market movements. Looking at a company’s performance and studying a stock’s behavior in the market can help you find the best positions for your investments. As US MSOs continue to grow in 2022, let’s take a look at the top 3 marijuana stocks for your list next week.
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Best US Marijuana Stocks for 2022
- Trulieve Cannabis Corp. (OTC: TCNNF)
- Cresco Labs Inc. (OTC: CRLBF)
- Planet 13 Holdings Inc. (OTC: PLNHF)
Trulieve Cannabis Corp.
With a market share of approximately 46%, Trulieve Cannabis Corp. is a highly successful cannabis company with the largest presence in Florida. The company opened its 112th dispensary in the state on Dec. 8. Harvest Health & Recreation Inc. was purchased and revenue is expected to exceed $1.2 billion in 2021. With 158 retail outlets, the company is currently the industry leader in the United States. Additionally, the company has a cultivation and processing capacity of 3.5 million square feet. Trulieve has received a production license in Georgia, allowing it to expand its presence in the Southeast cannabis market. Additionally, the company opened its first dispensary in Massachusetts, paving the way for future growth. Trulieve has hired executives to close out 2021, including Chairman Steve White, Vice Chairman and General Counsel Nicole Stanton, Director of Investor Relations Christine Hersey and Senior Director of Corporate Communications Rob Kremer.
Trulieve launched Live Diamonds, a one-of-a-kind hydrocarbon mining product in Florida, on January 10. Trulieve’s third quarter 2021 results were released in November, marking the company’s 15th consecutive profitable quarter. Over the previous year, the company’s net revenue increased 64% to $224.1 million. As a result, Trulieve made a gross profit of $153.9 million, with a gross margin of 68.7%. The company’s adjusted EBITDA was $98 million, or 43.7% of revenue. The company began its agricultural ventures and developed its first dispensaries in West Virginia.
Performance of TCNNF stock
TCNNF stock closed on January 14and at $25.40 up 5.61% last month. Currently, the stock has a 52-week price range of $23.10 to $53.73 and is down 29.05% over the past six months. According to analysts at Tip Ranks, TCNNF stock has a 12-month median price target of $67.51 per share. This forecast represents a 165.79% upside from its last trading price of $25.40.
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Cresco Labs Inc.
Cresco Labs is a vertically integrated cannabis company based in the United States. The company is currently the number one manufacturer of branded cannabis products in the United States. Cresco is the most popular marijuana brand in Illinois and Pennsylvania, according to a recent BDSA study. Cresco currently has 45 retail locations, 20 production facilities and 47 retail licenses in 11 states. Sunnyside launched its fourth dispensary in Pennsylvania as part of its expansion plan. The Good News product line will also be expanded to include new consumables and vaping options, according to the company. To increase profitability and eliminate third-party distribution, the company will transition to own-brand distribution in California in October. Cresco has purchased Blair Wellness Center, a dispensary in Maryland. The company announced in November that it had completed the acquisition of three high-performing clinics in Pennsylvania.
In the third quarter of 2021, the company had revenue of $215.5 million, up 40.6% year-over-year. As a result, Cresco made a gross profit of $116.7 million, or 54.2% of revenue. In the last quarter, Cresco’s adjusted EBITDA soared 24% to $56.4 million. The company forecast gross profit margins of more than 50% and fourth-quarter revenue of $235 million to $245 million for the remainder of 2021, confirming its previous guidance. Another substantial contributor to the company’s loss was a $291 million impairment charge related to changes in intangible assets following Cresco’s change in strategy for its California operations.
CRLBF share performance
CLRBF is currently trading at $6.91, up 5.82% over the past five trading days. The stock is currently trading within a 52-week price range of $6.02 to $17.49, posting a decline of 36.02% in six months. According to CNN Business experts, CRLBF stock has a 12-month average price target of $16.69 per share. This analysis reflects a 141.54% increase from the last trade price of $6.91.
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Planet 13 Holdings Inc.
Planet 13 celebrated the grand opening of its Orange County superstore in 2021, which is now the largest dispensary complex in California. The company is based in Nevada, and its cultivation, production and dispensary operations on the Las Vegas Strip have won top honors. Planet 13 is known for its massive Superstore dispensary on the Las Vegas Strip, which measures 112,000 square feet. Planet 13’s two supermarket dispensaries are currently said to be the largest in the world. Additionally, the Medezin store opened, which is a smaller version of the company’s main store that combines the larger retail structure into a tiny dispensary.
In November, Planet 13 reported third quarter 2021 revenue of $33 million, up 45% from a year earlier. Additionally, for the third quarter of 2021, the company generated $3.5 million of adjusted EBITDA. As a result, $17.6 million of gross profit before adjustments, or 53.5% of revenue, was created. In the third quarter of 2021, the company lost $10.2 million, compared to a profit of $0.2 million in the previous quarter. According to the company, Tinley’s products will be launched as a line of cannabis-infused beverages. Planet 13 has also completed the requirements for a cannabis license in Florida. In December, the company announced the acquisition of Next Green Wave Holdings, expanding its presence in California with premium indoor cultivation.
PLNHF stock performance
Shares of PLNHF closed at $3.29 on Jan. 14, up 6.47% over the past five trading days. The stock is down 46.50% in the past six months, with a 52-week price range of $2.874 to $8.67. PLNHF stock has a consensus price target of $6.50 per share, according to CNN Business analysts. This would indicate a 97.56% upside from the last trading price of $3.29. As the cannabis sector remains around all-time lows for this year, these could be the best cannabis stocks to add to your watch list for January 2022.