Top Cannabis Stocks in the Eastern United States
Are great marijuana stocks on your watch list in May? This month, major cannabis stocks hit new 52-week lows as the overall market fell. For more than a year, the cannabis sector has been experiencing significant declines in market value. These declines could offer a much weaker entry for new investors who want exposure to the cannabis industry. Currently, although the cannabis sector has performed poorly in the market, the industry has been growing rapidly in the United States and in global markets.
In May, many large cannabis companies beat earnings estimates and continued to show revenue growth in the first quarter of 2022. Regardless of delays in cannabis banking and the federal legalization of marijuana, growth in state level has been substantial. Like New Jersey and New York begin recreational sales, these markets could generate billions of dollars in sales growth within a few years. Some of the major cannabis companies that are well positioned in this region of the country could see potential growth.
US MSOs have been battered as time goes by and they are unable to list on major US exchanges like Nasdaq and NYSE. Ultimately, trading on OTC markets has moved them away from newer retail traders who use Robinhood Markets, Inc. (NASDAQ: HOOD) and WeBull. While also driving away many of the larger investment firms. As the eastern part of the United States is growing rapidly, let’s look up New Jersey Marijuana Stocks to add to your watch list now.
Best US Marijuana Stocks to Watch in 2022
- Curaleaf Holdings, Inc. (OTC: CURVE)
- Cresco Labs Inc. (OTC: CRLBF)
- Green Thumb Industries Inc. (OTC: GTBIF)
- Acreage Holdings, Inc. (OTC: ACRHF)
Curaleaf Holdings, Inc.
Curaleaf Holdings, Inc., a multi-state cannabis retailer with 133 U.S. outlets, produces packaged cannabis products. Additionally, Curaleaf International’s Adven GmbH, a wholly-owned subsidiary, has begun marketing medical cannabis products in Germany. In the United States, Curaleaf’s Select brand is one of the best known. After purchasing Tryke Companies in November, Curaleaf expanded its operations to three additional states. The company currently has properties in Arizona, Nevada and Utah in its portfolio. The company opened its 50th location in Florida on May 6.
The company announced its first-quarter 2022 results on May 9, with revenue of $313 million, up 20% year-over-year. Additionally, adjusted EBITDA was $73 million in the first quarter of 2022, and operating cash flow was $57.4 million. Los Suenos Farms was also acquired, bringing the company’s total cultivation capacity to 4.4 million square miles. Curaleaf is one of New Jersey’s most well-known cannabis dispensaries.
Performance of CURLF shares
May 13and CURLF shares closed at $5.91, up 6.39% for the trading day. The stock is currently trading in a 52-week range of $5.08 to $15.47 and is down 34.30% year-to-date. According to analysts at Tip Ranks, CURLF stock has a 12-month average price target of $13.08 per share. In this case, that would represent a 121.22% upside from its last trading price of $5.91.
Cresco Labs Inc.
Cresco Labs is a US-based cannabis company with a vertically integrated business structure. 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 operates in 11 states and has 50 retail outlets, 20 production facilities and 47 retail licenses. Sunnyside launched its fourth dispensary in Pennsylvania as part of its expansion plan. The Good News product line will 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 March, the company announced record results for the fourth quarter and full year 2021. Cresco’s revenue reached a new high of $822 million in fiscal 2021, up 73% from the previous year. Additionally, adjusted EBITDA increased 219% to $194 million, while gross profit less acquired inventory increased 219% to $430 million. The company posted revenue of $218 million and adjusted EBITDA of $57 million in the fourth quarter. The company earned $101 million in wholesale revenue and maintained its lead in sales of branded cannabis products in the United States, which include flowers, concentrates and vape cartridges. Cresco also said it would buy Columbia Care Inc. (OTC: CCHWF), transforming it into the new leader of the cannabis industry with a market cap of $2 billion. The transaction is expected to close in the fourth quarter of 2022.
CRLBF share performance
CRLBF actions ended May 13and at $3.82, up 5.02% for the trading day. The stock is currently trading in a 52-week price range of $3.82 to $13.50, posting a decline of 34.93% year-to-date. According to analysts at Tip Ranks, CRLBF stock has a 12-month median price target of $10.86 per share. In this case, that represents a 179.02% upside from its last trading price of $3.82. The company will release its first quarter 2022 results on May 18and before the market opens.
Green Thumb Industries Inc.
Green Thumb Industries Inc. is a key player in the cannabis consumer packaged goods (CPG) market in the United States. Currently, the company has 77 locations in 15 states, including one in New Jersey. GTI currently has 111 retail licenses, with hopes to increase this number in the future. In a first-of-its-kind deal with private label Cookies, GTI opened a Cookies on the Las Vegas Strip in 2021. Following the completion of its acquisition of Dharma Pharmaceuticals, Green Thumb announced its Virginia debut cannabis market. Leafline Industries was acquired by the company, giving them access to the Minnesota market. On April 14, the company opened its 77th Rise location.
GTI posted a 25% year-over-year increase in revenue to $243 million in the first quarter of 2022. This is the company’s ninth consecutive quarter of positive GAAP net income, with $29 million or $0.12 per basic diluted share. Excluding that, adjusted EBITDA was $67 million, or 28% of revenue. It’s also significant as this is GTI’s ninth consecutive quarter of positive cash flow, with $55 million generated in Q1 2022. Additionally, cash at the end of the quarter was $175 million. .
Performance of GTBIF shares
May 13and, GTBIF shares ended at $13.12, up 5.55% for the trading day. Currently, the stock has a 52-week price range of $11.45 to $35.15 and is down 40.80% year-to-date. According to analysts at Tip Ranks, GTBIF shares have a 12-month average price target of $35.60 per share. In this case, that would represent a 171.34% increase from its last trading price of $13.12.
Acreage Holdings, Inc.
Acreage Holdings, Inc. is a cannabis producer and retailer based in the United States. If the ban in the United States is lifted, Acreage is working on a relationship with Canopy Growth Corporation (NASDAQ: GCC) which could lead to an acquisition. New York and New Jersey have large geographic regions, and their booming economies are expected to grow at an exponential rate in the coming years. Acreage now has the most licensed dispensaries in New Jersey and also intends to complete its cultivation facility there. The company expanded its adult-use retail business in Maine on May 3 and completed the sale of a cultivation and processing facility in Oregon.
Acreage reported positive adjusted EBITDA for the fifth consecutive quarter in the first quarter of 2022. The company’s combined sales were $57 million, up 48% from a year earlier. In addition, the gross margin fell from 48% in the fourth quarter of 2021 to 52%. AFC Gamma, Inc. (NASDAQ: AFCG) recently extended a $150 million credit facility to Important Acreage to help it achieve its expansion goals. ACRHF stock closed at $1.00 on May 13and down 13.04% in the past five trading days. The stock has a 52-week price range of $0.95 to $5.05 and is down 40.48% year-to-date
New Jersey Cannabis Market Leaders
As the New Jersey and New York markets produce cannabis sales, the aforementioned companies could experience significant growth in these states. Most also have a stronghold in other major cannabis markets in the United States. Before investing in the cannabis sector, it is important to do your due diligence on a company. Tracking a company’s press releases and earnings can help you identify the strongest companies to invest in. While we continue to see significant volatility in the market, these are New Jersey’s top marijuana stocks right now.