Investor's Business Daily Names GrowGeneration A Top Stock For 2021
Founded in 1984, Investor's Business Daily (IBD) is a leading financial news and research organization recognized for proprietary stock screens, comparative performance ratings and a record of identifying stock leaders as they emerge. According to Investor’s Business Daily, the stocks to look out for in 2021 based on earnings per share growth include: Square, Micron, Align Technology, among others. But leading the list is GrowGeneration.
In the span of about six weeks, several states legalized the use of recreational marijuana and with Joe Biden winning the presidential election, we could see more for cannabis reform decriminalization and friendlier cannabis federal regulations. Such reforms include: full legalization for medical use, removal of drugs from the list of Schedule 1 illegal narcotics and more support for states to set their own cannabis policy.
The cannabis industry is the new gold rush and one of the companies acting as the shovel is Scotts Miracle-Gro. Yes, Scotts Miracle-Gro is that company that helps your lawn stay plush and lush. But they have leverage their expertise in lawn care to also help companies improve their crop yields. Their subsidiary Hawthorne Gardening primarily provides hydroponic solutions to the medical cannabis industry.
Hydroponics involves the growth of plants in a nutrient-rich water solvent as opposed to soil. Scott Miracle-Gro also acquired Sunlight Supply which sells hydroponic equipment to small- and medium-sized cannabis businesses and offers a similar array of hydroponic equipment.
GrowGeneration Corp., through its subsidiaries, owns and operates retail hydroponic and organic gardening stores in the United States. It engages in the marketing and distribution of horticultural, organics, and lighting and hydroponics products.
According to CEO of GrowGeneration, is the leading, yet still early stage, up-and-coming retail chain within the rapidly expanding and dynamic market for hydroponic and organic gardening supplies. The company estimates that new store additions, including acquisitions and greenfield expansions, could approach more than 20 units per year, putting its total number of locations at over 90 stores by 2023.
If you want to make some plays in the cannabis market but don’t want to jump right in, GrowGeneration stock is the perfect way to get your foot in the door.
The gradual decriminalization and acceptance of weed is a positive development for marijuana tool supplier, GrowGeneration. While the company does not deal with the production of cannabis, it does provide growers with the tools required for cultivation. The sweeping cannabis initiatives across states will allow the gardening enterprise to make waves in the multi-billion industry.
The chart suggests to look for buyers to test the waters and buy GrowGeneration at the daily demand at $29.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advice. Do your own research before making investment decisions.