5 hot marijuana stocks to watch

Summary

• Innovative Industrial Properties, Inc. (NYSE:IIPR) rose 118% in one year.
• Hydroponic garden store chain GrowGeneration Corp. (NASDAQ:GRWG) share grew by more than 500%.
• Cresco Labs Inc. (OTC:CRLBF) opened its 33rd operating store in the US, its fourth dispensary in Pennsylvania.  

Marijuana is also called pot, weed, grass, herb, ganja, and Mary Jane. It is a mixture of dried flowers of the Cannabis Sativa plant. It is consumed through smoking, brewed tea, vaporizers or mixed into foods.

Cannabis refers to three plants that contain psychoactive properties: Cannabis Sativa, Cannabis Indica and Cannabis Ruderalis. 

Marijuana leaves and buds contain a psychoactive chemical known as tetrahydrocannabinol (THC), responsible for getting a ‘high’.

There are other chemicals too in the plant related to tetrahydrocannabinol, known as cannabinoids.

In 2012, Colorado and Washington became the first US states to legalize the recreational use of cannabis. Now, nearly two dozen more states are on the way to legalize it.

Here we explore five marijuana stocks in the market.

Source: Pixabay

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Innovative Industrial Properties, Inc. (NYSE:IIPR) is the only real estate investment trust (REIT) on NYSE. It owns and leases industrial properties for the production of regulated medical cannabis products.  

IIPR has a market capitalization of US$ 4.78 billion. Its P/E ratio is 56.34, and the dividend yield is 2.77%. For the March quarter of 2021, its revenue was US$ 42.9 million, 103% up YOY, and net income was US$ 25.6 million, 122% up YOY. Earnings per share diluted were US$ 1.05, and cash and cash equivalent are US$ 122.1 million.

Its increased 118% in one year and 7.9% YTD. The stock closed at US$ 200 on July 7, 2021.

GrowGeneration Corp. (NASDAQ:GRWG) is a chain of hydroponic cannabis garden stores. It grows and sells various cannabis products from its hydroponic gardening facilities.

GRWG has a market capitalization of US$ 2.78 billion. Its P/E ratio is 188.92.

Its revenue comes from sales at company-owned stores, distribution, and e-commerce sales. The company reported total revenue of US$ 90 million for the March quarter of 2021, 173% growth YoY. Its net income was US$ 6.15 million compared to a net loss of US$ 2.09 in March quarter 2020. It reported cash and cash equivalents of US$ 92 million for the March quarter. 

The stock gave an astounding 587% return in one year. GRWG share closed at US$47.23 on July 7, 2021. Its YTD return is 11.88%.

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Cresco Labs Inc. (OTC:CRLBF) is headquartered in Chicago, Illinois. It has a market capitalization of US$ 2.79 billion. Cresco lab is engaged in growing, manufacturing, and distributing cannabis through consumer-packaged goods (CPG).

Its first-quarter, 2021, revenue was US$ 178.4 million, an increase of 168.8% year-over-year. Its adjusted EBITDA (Non-GAAP) was US$ 35 million, an increase of 507.2% year-over-year. The company reported a cash and cash equivalent of US$ 255.5 million as of March 31, 2021.  

In June, Cresco opened its 33rd operating store in the US and its fourth dispensary in Pennsylvania.  

Its stock price rose 175% over the past year. It closed at US$11.3 on July 7, 2021.

Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) is an independent distributor and controlled environment agriculture (CEA) equipment and supplies manufacturer. Its products are used in the cannabis industry, especially for controlled indoor or hydroponic systems.

FM has a market capitalization of US$2.2 billion.  

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The company’s net sales were US$ 111.39 million in the March quarter of 2021, a 66% increase YOY. Its net income attributable to common shareholders was US$ 4.94 million for the March quarter, 2021, compared to the net loss of US$ 3.73 for the same quarter a year ago. It reported a cash and cash equivalent of US$ 62 million at the end of the March quarter of 2021.

On July 1, the company announced the completion of the acquisition of Aurora International, Inc., Aurora Innovations, Inc., and Gotham Properties. Since December 2020, its stock price grew nearly 11% at the closing price of US$ 57.63 on July 7, 2021.

The Valens Company Inc. (OTC:VLNCF) is engaged in developing and manufacturing cannabinoid-based products. Valens is the largest third-party extraction company in Canada for dried cannabis and hemp biomass. It has a market capitalization of US$ 425.3 million. 

For the quarter ended February 28, 2021, its revenue was US$ 15.8 million, a 34% decline year-over-year. It booked a net loss of US$ 4.9 million compared to a net income of US$1.9 million in the February quarter of 2020. Its cash and cash equivalents are US$ 38.94 million as of February quarter 2021.

Valens share made a 41% growth in one year. The stock closed at US$ 2.287 on July 7, 2021.

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Source: Pixabay

Livewire Ergogenics Inc (OTC:LVVV) acquires special purpose properties to produce cannabis products for medical and recreational adult use in California. It is headquartered in Anaheim, California.

Livewire has a market capitalization of US$24.78 million.

Its revenue for the March quarter of 2021 was US$ 83 thousand compared to US$ 141 million in the corresponding quarter of 2020. The company booked a net loss of US$ 338 thousand compared to US$ 2.06 million in March quarter 2021. Its cash and cash equivalent increased to US$ 477 thousand in March quarter 2021, from US$ 69 thousand a year-ago period. 

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On July 6, Livewire announced receiving its final approval to operate in San Luis Obispo County of California.  Its stock price rose by 321% in one year at the closing price of US$0.0164 on July 7, 2021.  

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.

The reference data in this article has been partly sourced from Refinitiv.