In its most recent quarter, the cannabis vertical increased its revenue by 123%
GrowGeneration is not a name that is regularly tied to the cannabis industry, but which should be on investors’ radars. The company targets the gardening and hydroponics spaces and, partly as a result of continued growth in cannabis cultivation, is enjoying better numbers than ever. This is a good alternative for investors who want to get in on cannabis stock trading, but who would rather not get involved directly with the industry. As GrowGeneration operates on the periphery, it can capitalize on the growing cannabis market without having to worry about many of the risks associated with its volatility.
GrowGeneration has 28 garden centers across the US and provides many of the supplies necessary for better cannabis cultivation. It offers greenhouse materials, grow lights and more, and, in its most recent quarter, the second quarter of this year, reported growth in revenue of 123%. Sales reached $43.5 million, making the results the tenth consecutive period of positive growth and record sales. The company is also consistently beating all forecasts, and expects to see as much as $175 million in revenue by the time the year comes to a close.
After releasing the quarterly results, GrowGeneration saw its stock shoot up to a 52-week high of $22.88. It has calmed down some since then, dropping to around $15; however, this is still a 270% increase on the year. By way of comparison, the S&P 500 is down almost 7%, and the Horizons Marijuana Life Sciences exchange-traded fund (ETF) is up 4.73% over the same period.