8 Best Vertical Farming and Hydroponic Stocks to Invest In

3) GrowGeneration Corp. (NASDAQ:GRWG)

Number of Hedge Fund Holders: 6

GrowGeneration Corp. (NASDAQ:GRWG) owns and operates retail hydroponic and organic gardening stores in the US. Industry experts opine that the company has increased the sales of its proprietary brands, such as Char Coir and Drip Hydro, which provide higher margins. This is because they eliminate intermediary costs and enable the company to capture a larger share of the revenue, fueling profitability.

GrowGeneration Corp. (NASDAQ:GRWG) closed underperforming stores to focus on higher-performing locations, reducing its store count from about 65 to 31. This restructuring focuses on streamlining operations and improving profitability. In the current year, the company closed 19 stores and, on a YoY basis, it closed down 25 stores. Furthermore, the closures form part of GrowGeneration Corp. (NASDAQ:GRWG)’s strategic plan to streamline its focus on proprietary brands and digital sales.

As per Wall Street analysts, the company’s strategy has started to work. GrowGeneration Corp. (NASDAQ:GRWG)’s proprietary brand sales as a percentage of Cultivation and Gardening net sales for Q3 2024 increased to 23.8% as compared to 19.4% for the same prior year period. This is tracking well against the company’s goal to grow proprietary brand sales to 35% in 2025. Furthermore, GrowGeneration Corp. (NASDAQ:GRWG)’s same-store sales saw growth of 12.5% YoY in Q3 2024, reflecting the strong performance of its core store locations as the company right-sizes its retail footprint. Wall Street analysts gave a price target of $4.00 to shares of the company.