Yahoo Finance GrowGeneration (GRWG) Grows Base With 1st Store in New Jersey
GrowGeneration Corp. GRWG announced the opening of a store in Mount Holly, NJ. The store will mark GRWG’s foray into the New Jersey market and its 60th store overall. This will officially expand the number of states the company operates in, to 16.
Located in Mount Holly, the store has a sprawling area of 7,700 square feet and will include vertical farming demonstrations. It will also support growers educationally by helping them build and maintain state-of-the-art grow operations to maximize their yields.
Given its strong medical patient base as well as pending legislation that will allow home cultivation of cannabis, GrowGeneration expects the New Jersey region to develop solid prospects in the upcoming years. The opening of this store is in sync with GRWG’s strategy to expand in the fast-growing and strategically important markets.
GRWG had previously mentioned its desire to continue the national program of educating and training Social Equity License holders in cooperation with Harvest 360. As GrowGeneration expands, it will sustain this program in its newest store. It will provide operators and their communities with high-quality support and solutions.
GrowGeneration is a large chain of speciality hydroponic and organic garden centers based in the United States. GRWG plans further to open stores in untapped geographies with great potential.
In the third quarter of 2022, net sales of GrowGeneration declined 39% due to weak demand. Comparable store sales for the quarter slumped 58.1%, while GRWG reported a loss of 12 cents per share. Post-third-quarter results, the guidance for 2022 earnings is set at $270 million to $280 million. GRWG had reported revenues of $422.5 million in 2021.
Price Performance
Shares of GRWG have declined 67.2% in the past year compared with the industry’s fall of 3.6%.
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Zacks Rank & Other Stocks to Consider
GRWG currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks from the basic materials space are Nucor NUE, Innospec IOSP and Bunge Limited BG. While BG flaunts a Zacks Rank #1 (Strong Buy), NUE and IOSP carry a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Nucor’s 2022 earnings per share projects a growth of 28.8% from the year-ago reading. NUE has a trailing four-quarter earnings surprise of 3.9%, on average. Its shares have gained 27.5% in the past year.
Innospec has a projected current-year earnings growth rate of 9.1% from the prior-year reported number. IOSP has a trailing four-quarter earnings surprise of 25.6%, on average. Shares of IOSP have increased 27.2% in a year.
Bunge Limited has an expected earnings growth rate of 7.4% for the current year. BG’s earnings estimates have been revised 7.1% upward in the past 60 days. It has a trailing four-quarter average surprise of 18.7%. The stock has gained 7.7% during the year.
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