10 Best Pot Stocks To Invest In According to Analysts

4. GrowGeneration Corp. (NASDAQ:GRWG) 

Share Price (As of December 23): $1.66

Analyst Upside: 150.78%

GrowGeneration Corp. (NASDAQ:GRWG) is one of the leading cannabis firms that is involved in indoor and outdoor hydroponic and organic gardening. The company sells hydroponic gardening products and claims to be the largest chain of specialty retail hydroponic and organic garden centers in the US.

GrowGeneration Corp. (NASDAQ:GRWG) has been working on restructuring its business and it is investing in proprietary brands. After ramping up its 19 retail locations during Q3, the company has introduced three new premium product lines across its portfolio of proprietary brands, which include growing lighting, essential accessories, and medium for indoor growing and greenhouse hydroponics. The company further plans to announce more products in this category as it expects the proprietary brand sales to account for 35% of total gardening sales by the end of 2025.

During Q3 2024, the proprietary brand sales surged to 23.8% of total sales, up from 19.4% year-over-year, mainly driven by new product launches. Moreover, the company achieved a 12.5% increase in same-store sales. This was the first positive same-store sales growth in three years. The company is also improving its expense load through cost-cutting measures and in Q3 the operating expenses decreased by 5.4%, falling to $22.9 million.

The company maintains a solid cash position with cash equivalents and marketable securities of $55.2 million with zero debt, as of Q3 2024. To return value to the shareholders, GrowGeneration Corp. (NASDAQ:GRWG) repurchased an additional $1.8 million of stocks during Q3. GrowGeneration Corp. is shifting its focus to e-commerce operations, where the demand is higher.