GrowGeneration (GRWG) Stock

The cannabis sector is in a bear market, but GrowGeneration is a Strong Buy at its current depressed valuation, trading below tangible book value. Insiders have been buying, and the potential elimination of 280E taxation could significantly boost GRWG's adjusted EBITDA and stock price. GRWG's low price relative to tangible book value and its debt-free status with substantial cash provide a cushion against downside risk.

The cannabis industry continues to grow and shows why people should be finding ways to invest. Now marijuana stocks for some time have been one of the tougher sectors to pull consistent profits from. There is a lack of continuous momentum and when there is it is often due to politics on cannabis reform. Other factors that help the sector build better momentum is when companies report strong earnings. When people can see that a company is thriving it entices them to invest looking further into marijuana stocks.

GrowGeneration stock is a Strong Buy due to positive same-store sales and insider buying, despite revenue decline and increased operating loss. Analysts are cautious, projecting flat or declining revenue, but management's stock purchases show confidence. Valuation is attractive, with GRWG trading below tangible book value and potential upside if adjusted EBITDA improves.

GRWG expects revenues between $190 million and $195 million for 2024.

GrowGeneration (GRWG) came out with a quarterly loss of $0.19 per share versus the Zacks Consensus Estimate of a loss of $0.11. This compares to loss of $0.12 per share a year ago.

DENVER--(BUSINESS WIRE)--GrowGeneration Corp. (NASDAQ: GRWG) (“GrowGen” or the “Company”), one of the largest retailers and distributors of specialty hydroponic and organic gardening products in the United States, today announced it will release its financial results for the third quarter ended September 30, 2024 on Tuesday, November 12, 2024 after market close. The announcement will be followed by a live earnings conference call at 4:30 p.m. ET. To participate in the call, please dial 1-(888)-.

More cannabis companies are preparing to report earnings, and this could be big for the sector. There has been an increase in people investing in marijuana stocks. The reason is that it is the easiest way to be part of the industry without all the heavy lifting. You do not need to start a company and go into production. The ability for cannabis companies to be publicly traded gives people the opportunity to find top marijuana stocks to buy. The amount of growth and progress that occurred over the last several years is only proving why legal cannabis should have been established long ago.

The cannabis industry has experienced an amazing change in recent years. This includes evolving from an underground market to a legitimate and rapidly growing sector. As legalization spreads across various regions, investors are increasingly attracted to marijuana stocks. However, investing in this budding market comes with its own set of risks. Yet the explosive growth, particularly in the United States and Canada has allowed more people to enter the sector as well learn about it.

Marijuana stocks are caught once again in a downward trend due to more industry hold-ups. In recent news, the DEA who not long ago was on board and on track to reschedule cannabis has now put that action on pause. What a surprise! This is not an unfamiliar occurrence for the cannabis industry, especially during an election year. During this time candidates are focused on winning votes and meeting the needs of those voters.