GrowGeneration Corp. (GRWG)

GrowGeneration (GRWG) could be a great choice for investors looking to buy stocks that have gained strong momentum recently but are still trading at reasonable prices. It is one of the several stocks that made it through our 'Fast-Paced Momentum at a Bargain' screen.

Most marijuana stock investors are keeping a core focus on the future. At one point in time, most cannabis stocks had fast turnarounds for making a profit. However, this has not been the case for a long while. In fact, since the pandemic, there has been an overwhelming drop in trading in that sector. Now, with a bigger push for federal reform and other rules and regulatory issues being worked on in the last few months, cannabis stocks have been on the rise.

The U.S. cannabis industry is gaining momentum again, and ancillary stocks are attracting investor attention this week. The legal market generated over $30 billion in sales last year and could exceed $50 billion by 2030. Ancillary companies provide vital tools, marketplaces, and supplies, making them less exposed to direct regulation. Recent headlines highlight renewed discussions in Congress about cannabis banking reform and potential federal rescheduling. Therefore, optimism is building around improved access to capital and market expansion. Investors are closely watching companies that support dispensaries, growers, and consumers with platforms and infrastructure. These businesses often benefit as legalization advances across more states.

The near-term outlook for the Zacks Agriculture - Products industry is uncertain. Stocks like ANDE and GRWG are braving the industry headwinds.

The U.S. cannabis industry continues to expand, with annual sales expected to surpass 40 billion dollars in 2025. Market forecasts suggest long-term growth as more states approve medical and recreational use. Recent discussions on federal legalization have also reignited investor interest. These developments provide a favorable backdrop for ancillary companies, which support the industry without directly handling cannabis. Because they supply cultivators and dispensaries with essential tools, these businesses often face less regulatory risk.

For cannabis investors, watching the industry's growth brings hope. Especially with how volatile the sector can get, even when public companies do well as a business, it does not resonate in the stock market. In recent news, Q2 earnings have been released for most publicly traded cannabis companies. Some companies have reported that they are still generating decent revenue. For others, beyond showing profitability, more partnerships and deals are being made.

I recommend a modest BUY position in GrowGeneration, leveraging a covered call strategy for enhanced returns with limited risk. The near-term call option sale offers a 5.8% return in 39 days, annualizing to 54.7%, with strong liquidity in GRWG options. Upside for GrowGeneration hinges on cannabis rescheduling and removal of 280E taxation, which would benefit its core customers.

Marijuana stock investors are awaiting to hear what will come of cannabis rescheduling. Historically, when news on the matter is released that shows progress, most cannabis stocks begin to trade up. This is what speculation can do. No one wants to be late to invest or miss the chance to be in an emerging sector. Legal cannabis has been on the rise for many years. Facing many roadblocks and still finds a way to forge ahead.

If you are looking for stocks that have gained strong momentum recently but are still trading at reasonable prices, GrowGeneration (GRWG) could be a great choice. It is one of the several stocks that passed through our 'Fast-Paced Momentum at a Bargain' screen.

The U.S. cannabis industry continues to expand rapidly, making ancillary stocks an attractive area for investors. In 2024, legal cannabis sales reached more than $29 billion nationwide. Analysts project the market could surpass $45 billion by 2030 as legalization spreads. Ancillary companies supply the technology, data, and cultivation tools that dispensaries and growers need to operate efficiently. These businesses avoid direct plant-touching risks while benefiting from industry growth. Recently, headlines surrounding potential federal legalization and banking reform have reignited investor interest. Moreover, new state markets continue to open, driving opportunities for service providers. Therefore, ancillary stocks remain critical watchlist candidates.

Collaboration will greatly expand GrowGen's market reach for organic fertilizers, propagation systems, and sustainable growing media across Arett's 32-state lawn & garden network Collaboration will greatly expand GrowGen's market reach for organic fertilizers, propagation systems, and sustainable growing media across Arett's 32-state lawn & garden network

GrowGeneration (GRWG) made it through our 'Fast-Paced Momentum at a Bargain' screen and could be a great choice for investors looking for stocks that have gained strong momentum recently but are still trading at reasonable prices.

The U.S. cannabis industry remains a powerful economic force, generating over $30 billion in annual sales in 2024. Industry analysts project sales could exceed $50 billion by 2030, driven by expanding legalization and rising consumer demand. Recently, headlines have focused on federal reform momentum after bipartisan discussions in Congress. These talks aim to improve banking access for cannabis businesses, which could boost profitability. Ancillary cannabis companies, which supply products and services to cultivators and retailers, continue to benefit from sector growth. They avoid direct plant-touching risks while capturing steady revenue from equipment, supplies, and technology demand. Consequently, these stocks can provide diversified exposure to the market.

GrowGeneration (GRWG) came out with a quarterly loss of $0.08 per share versus the Zacks Consensus Estimate of a loss of $0.11. This compares to a loss of $0.1 per share a year ago.

GrowGeneration Corp. (NASDAQ:GRWG ) Q2 2025 Earnings Conference Call August 11, 2025 4:30 PM ET Company Participants Darren Lampert - Co-Founder, CEO & Chairperson of the Board Gregory Sanders - Chief Financial Officer Conference Call Participants Aaron Thomas Grey - Alliance Global Partners, Research Division Brian William Nagel - Oppenheimer & Co. Inc., Research Division Mark Eric Smith - Lake Street Capital Markets, LLC, Research Division Philip E. Carlson - Kanan, Corbin, Schupak & Aronow, Inc. Operator Hello, everyone, and welcome to the GrowGeneration Second Quarter 2025 Earnings Conference Call.

As marijuana stocks are stuck at bottom prices, what are shareholders to do? For new investors intrigued by legal cannabis, how should they proceed? All valid and good questions, it is not so much that all is a loss, it's more so the strategy. Right now, the game is the long game, especially with the continuation of this volatile downtrend. Even with top companies looking attractive to people as marijuana stocks to buy, there is more to it.