It’s no surprise that the legal marijuana industry has been on the rise in recent years. This comes as the legal landscape surrounding cannabis has undergone a major shift. More and more U.S. states and countries globally are decriminalizing or legalizing the use of marijuana, and this trend is expected to continue in the years to come. As a result, stock market investors are taking a closer look at the potential of the cannabis industry.
There are a few key reasons why marijuana stocks are attractive to investors. First, the demand for cannabis products is increasing rapidly, as more people are using marijuana for medicinal and recreational purposes. Second, the legal market for cannabis is still in its early stages, which means that there is significant room for growth. And finally, many companies that produce cannabis products are still relatively small, which makes them more volatile and therefore riskier, but also potentially more profitable.
Of course, there are also some risks associated with investing in marijuana stocks. The most obvious risk is that the legal landscape could change again. Nevertheless, for investors with a high tolerance for risk, marijuana stocks could offer a potentially profitable opportunity. If this has you keen on investing in marijuana stocks, here are three companies to check out in the stock market today.
Marijuana Stocks To Buy [Or Sell] Right Now
- The Scotts Miracle-Gro Company (NYSE: SMG)
- Innovative Industrial Properties Inc (NYSE: IIPR)
- Curaleaf Holdings Inc. (OTCMKTS: CURLF)
1. Scotts Miracle-Gro Company (SMG Stock)
Scotts Miracle-Gro is the largest provider of gardening and lawn care products in the United States. The company Scotts has a variety of brands in its portfolio that include Miracle-Gro, Roundup, Ortho, Tomcat, and Scotts. In addition, Scotts is also the leading supplier of cannabis-growing equipment in North America through its Hawthorne business.
SMG Recent Stock News
In August, Scotts Miracle-Gro announced its third quarter 2022 earnings of $1.98 per share and revenue of $1.2 billion. Meanwhile, the street’s consensus earnings estimate was $1.70 per share on revenue of $1.5 billion for Q3 2022. Additionally, the company reported that it projects fiscal 2022 earnings of $4.00 to $4.20 per share. This came in lower than Scotts Miracle-Gro’s previous forecast, which was earnings of $4.50 to $5.00 per share. Aside from that, the company announced Project Springboard in an effort to help strengthen its balance sheet, widen margins and improve free cash flow.
Jim Hagedorn, Chairman, and CEO said this about the third quarter, “Behind a complicated story this quarter, we were pleased to see consumer engagement build as the weather improved and the season progressed,” said Jim Hagedorn, chairman and chief executive officer. “While consumer purchases are down 8 percent in units year-to-date, that performance is in line with the guidance we laid out at the beginning of the year. We are extremely encouraged that consumer purchases in May and June were at near-record levels, once again showing the resiliency of the category.“
SMG Stock Chart
So far in 2022, shares of SMG stock have been beaten down by 70%. On Wednesday, Scotts-Miracle Gro stock closed the trading session at $48.12 a share. At these current levels, do you think this could be a good time to buy SMG stock?
2. Innovative Industrial Properties (IIPR Stock)
Next up, we have Innovative Industrial Properties Inc. (IIPR). For starters, the company is a U.S.-based publicly traded real estate investment trust (REIT). Specifically, Innovative Industrial Properties specializes in the development, acquisition, and management of industrial properties leased to state-licensed operators of medical-use cannabis facilities. Today, IIPR has a portfolio of approximately 110 properties located throughout the United States. Aside from that, the company currently has an annual dividend yield of 7.68%.
IIPR Recent Stock News
This month, the company announced that its board of directors has declared a 3rd quarter 2022 dividend of $1.80 per share of common stock. In addition, the common stock dividends declared for the twelve months ending September 30, 2022, of $6.80 per common share reflects a $1.34, or 25% increase on a year-over-year basis.
Separate from that, last month IIPR reported its 2nd Quarter 2022 fiscal results. In detail, Innovative Industrial Properties posted Q2 2022 earnings of $2.14 per share, along with revenue of $70.5 million. This is versus analysts’ consensus estimates for the second quarter, which was earnings of $1.86 per share, with revenue of $69.7 million. Also, the company announced revenue growth of 44.3% during the same period, in 2021.
IIPR Stock Chart
On Wednesday, shares of IIPR stock closed the day up over 5% at $93.96 per share. All in all, do you think IIPR deserves a place on your marijuana stocks watchlist right now?
3. Curaleaf Holdings (CURLF Stock)
Last but not least, let’s talk about Curealf Holdings Inc. (CURLF). In short, Curaleaf is one of the leading vertically integrated multi-state cannabis operators in the United States. The company focuses on improving lives by providing clarity around cannabis and confidence around its benefits. For a sense of scale, Curealf employs more than 6,000 employees, and currently operates 136 dispensaries throughout 22 states in the United States.
CURLF Recent Stock News
This month, Curaleaf announced the completion of its agreement to acquire a majority stake in Four 20 Pharma GmbH. In detail, Curaleaf acquired 55% of the company. Meanwhile, 20 Pharma GmbH is a fully EU-GMP & GDP licensed German producer and distributor of medical cannabis.
Boris Jordan, Executive Chairman of Curaleaf, had this to say, “We are pleased to complete the transaction with Four 20 Pharma and I am personally thrilled to welcome Torsten and Thomas to the Curaleaf family. Our early focus on Europe has given Curaleaf a formidable strategic asset and strong foundation in one of the industry’s critical global markets. Curaleaf is the only U.S. MSO uniquely positioned to capitalize on the opportunity.“
Separate from that, the company reported its Q2 2022 financial results last month. Getting straight into it, Curaleaf posted a second-quarter 2022 revenue of $338 million. The company contributes its revenue growth to new retail store openings and the commencement of adult use in New Jersey. What’s more, Curaleaf reported that its gross profit margin increased to 51.9% from 49.6% during the same period, in 2021.
CURLF Stock Chart
Year-to-date shares of Curaleaf stock have dropped over 41% so far. Though, on Wednesday CURLF stock closed the day up over 1% at $5.13 per share. With this in mind, could now be the right time to add CURLF stock to your long-term portfolio?