GrowGeneration deserves a special place in investors’ portfolios

334 0

The cannabis company is priced right for investors of all levels and has a bright future

If investors have only $1,000 to invest in stock purchases, they can still choose to buy fractional shares. They might also consider smaller, younger companies that have solid business plans and attractive growth rates. One example is in the cannabis industry.

GrowGeneration is now the leading hydroponics retailer in the US. Hydroponics can be used with many crops and GrowGeneration, which offers supplies and private label products, has gained a lot of popularity among cannabis growers.

The company already has 63 stores across the US. Growers can also purchase its private-label products from multiple countries. Horticulture Rep group was recently acquired.

This will allow GrowGeneration to expand its global supply chain. With more states legalizing cannabis for medical and recreational purposes, the industry’s long-term growth will continue for many years, allowing GrowGeneration expansion to follow.

Investors can purchase this retail stock with a market capitalization below $500 million while it is still small-cap. However, don’t be surprised if it grows. Grand View Research projects an industry-wide compound annual growth rate of 27% from 2028 to 2028.

GrowGeneration’s stock is now worth $8 per share, despite its potential. It traded at almost $68 just a year ago. The price fell in 2021 due to overvaluation and a West Coast marijuana glut. After experiencing over 60% sales growth in 2020, it has now seen negative sales at its same-store stores.

The positive side is that the price drop has brought its P/E ratio to 38. It had briefly risen above 800 in the early part of last year. This makes the valuation seem more attractive. Analysts see low growth in 2022, but they expect 25% growth and rising earnings in 2023.