Grow Generation Corp. GRWG announced the opening of a store in Mount Holly, NJ. The deal marks GRWG’s foray into the New Jersey market and is its 60th deal overall. This officially brings the number of states in which the company operates to 16.
Located in Mount Holly, the store has a sprawling 7,700 square feet and will feature vertical farming demonstrations. It will also provide growers with educational support, helping them build and maintain state-of-the-art grow operations to maximize their yields.
Given its strong medical patient base, as well as upcoming legislation that will allow home growing of cannabis, GrowGeneration expects the New Jersey area to develop solid prospects in the years to come. The opening of this store is in line with GRWG’s strategy to expand in fast-growing and strategically important markets.
GRWG had previously expressed its desire to continue the national program to educate and train social equity license holders in partnership with Harvest 360. As GrowGeneration expands, it will maintain this program in its newest store. It will provide quality support and solutions to operators and their communities.
GrowGeneration is a large chain of specialty hydroponic and organic garden centers based in the United States. GRWG plans to open more stores in undeveloped regions with great potential.
In the third quarter of 2022, GrowGeneration’s net sales fell 39% due to weak demand. Comparable-store sales fell 58.1% for the quarter, while GRWG reported a loss of 12 cents a share. Following third-quarter results, 2022 earnings guidance is $270-$280 million. GRWG had reported sales of $422.5 million in 2021.
value for money
Shares in GRWG have fallen 67.2% over the past year, compared to a 3.6% decline in the industry.
Image source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
GRWG currently carries a Zacks Rank #2 (Buy). Some other top ranked stocks are from the Materials space Nukor NOW, Innospec IOSP and Bunge Limited bg While BG is sporting a Zacks Rank #1 (Strong Buy), NUE and IOSP currently sport a Zacks Rank of 2. You can see the full list of today’s Zacks #1 Rank stocks can be found here.
The Zacks Consensus estimate for Nucor’s 2022 earnings per share calls for growth of 28.8% year over year. NUE has a trailing four-quarter earnings surprise averaging 3.9%. Its shares are up 27.5% over the past year.
Innospec has a forecast earnings growth rate of 9.1% for the year to date compared to the number reported last year. IOSP has a trailing four-quarter earnings surprise averaging 25.6%. IOSP shares are up 27.2% in one year.
Bunge Limited has a year-to-date earnings growth rate of 7.4%. BG’s earnings estimates have been revised up 7.1% over the last 60 days. It has a four-quarter trailing average surprise of 18.7%. The share gained 7.7% over the course of the year.
Want the latest recommendations from Zacks Investment Research? Today you can download the 7 best stocks for the next 30 days. Click here to get this free report
Nucor Corporation (NUE): Free Stock Research Report
Bunge Limited (BG): Free stock research report
Innospec Inc. (IOSP): Free Stock Research Report
Grow Generation Corp. (GRWG): Free Stock Analysis Report
To read this article on Zacks.com, click here.
Zacks Investment Research