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GrowGeneration (GRWG) Buys Harvest Company, Grows in California
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GrowGeneration Corp. (GRWG - Free Report) recently announced the acquisition of The Harvest Company, which serves growers in Northern California's Emerald Triangle — the largest cannabis-producing region in the country. With this buyout, GrowGeneration has taken its store tally to 55, with 20 in California.
Locally owned and operating since 2014, Harvest Company is a hydroponic supply center and cultivation design innovator with stores in Redding and Trinity County. It has provided Northern California growers with specialty hydroponic supplies and professional horticultural consultation services.
GrowGeneration has been active on the acquisition front — making eight buyouts in 2020 and ten this year. It now boasts a portfolio of hydroponic garden centers of 55 stores across 12 states. The company is close to its target of achieving 60 garden center locations by the end of 2021. It intends to take the tally up to 100 by 2023. The company’s strategy is to grow revenues and net income through same store sales, private label and investing in expanding its supply chain through store openings and acquisitions.
The U.S Hydroponics market has immense potential and is expected to witness a CAGR of 12% over 2019-2025 to $16 billion. Further, hydroponics have been a staple in cannabis cultivation. As more and more states across the country continue to legalize cannabis, the company’s products are in demand. Cconsidering that California accounts for 20% of the United States’ legal cannabis sales and with its cannabis market projected to grow to $5 billion by 2022, it is a crucial market for the company. The Emerald Triangle in particular, represents tremendous market potential, with over 500 cultivation licenses in Trinity County alone.
Earlier this month GrowGeneration reported first-quarter 2021 record earnings per share of 10 cents, which marked a turnaround from a loss of 6 cent per share in the prior-year quarter courtesy of its focus on strategic growth in key markets both organically and through acquisitions, and efforts to reduce operational costs. Revenues amounted to $902 million in the quarter, reflecting a whopping year-over-year growth of 173%. Comparable Store Sales for the quarter was up 51% from the last year. Growth in e-commerce channel and Private-label sales also contributed to the upside.
GrowGeneration has been gaining from ongoing strength in sales on all fronts — online, commercial and retail. The company has rebranded its existing e-commerce operation, HeavyGarden.com and GrowGen.Pro, as growgeneration.com, which is an omni-channel sales approach to facilitate e-commerce across all its locations. It is more customer friendly and provides both options — delivery or pick-up from store. This initiative is expected to bolster sales.
The company projects revenues in 2021 between $450 million and $470 million. It had reported revenues of $193 million in 2020. Full-year adjusted EBITDA guidance has been raised to the range of $54 million to $58 million.
Share Price Performance
Over the past year, GrowGeneration has soared 505.7% compared with the industry’s rally of 86.5%.
Zacks Rank & Other Stocks to Consider
GrowGeneration currently carries a Zacks Rank #2 (Buy).
ArcelorMittal has a projected earnings growth rate of 984.7% for the current fiscal year. The company’s shares have soared nearly 220% in the past year.
Celanese has an expected earnings growth rate of 68.3% for the current fiscal year. The company’s shares have rallied around 79% over the past year.
Dow has an estimated earnings growth rate of 261.6% for the current fiscal year. The company’s shares have gained roughly 78% in a year’s time.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Image: Bigstock
GrowGeneration (GRWG) Buys Harvest Company, Grows in California
GrowGeneration Corp. (GRWG - Free Report) recently announced the acquisition of The Harvest Company, which serves growers in Northern California's Emerald Triangle — the largest cannabis-producing region in the country. With this buyout, GrowGeneration has taken its store tally to 55, with 20 in California.
Locally owned and operating since 2014, Harvest Company is a hydroponic supply center and cultivation design innovator with stores in Redding and Trinity County. It has provided Northern California growers with specialty hydroponic supplies and professional horticultural consultation services.
GrowGeneration has been active on the acquisition front — making eight buyouts in 2020 and ten this year. It now boasts a portfolio of hydroponic garden centers of 55 stores across 12 states. The company is close to its target of achieving 60 garden center locations by the end of 2021. It intends to take the tally up to 100 by 2023. The company’s strategy is to grow revenues and net income through same store sales, private label and investing in expanding its supply chain through store openings and acquisitions.
The U.S Hydroponics market has immense potential and is expected to witness a CAGR of 12% over 2019-2025 to $16 billion. Further, hydroponics have been a staple in cannabis cultivation. As more and more states across the country continue to legalize cannabis, the company’s products are in demand. Cconsidering that California accounts for 20% of the United States’ legal cannabis sales and with its cannabis market projected to grow to $5 billion by 2022, it is a crucial market for the company. The Emerald Triangle in particular, represents tremendous market potential, with over 500 cultivation licenses in Trinity County alone.
Earlier this month GrowGeneration reported first-quarter 2021 record earnings per share of 10 cents, which marked a turnaround from a loss of 6 cent per share in the prior-year quarter courtesy of its focus on strategic growth in key markets both organically and through acquisitions, and efforts to reduce operational costs. Revenues amounted to $902 million in the quarter, reflecting a whopping year-over-year growth of 173%. Comparable Store Sales for the quarter was up 51% from the last year. Growth in e-commerce channel and Private-label sales also contributed to the upside.
GrowGeneration has been gaining from ongoing strength in sales on all fronts — online, commercial and retail. The company has rebranded its existing e-commerce operation, HeavyGarden.com and GrowGen.Pro, as growgeneration.com, which is an omni-channel sales approach to facilitate e-commerce across all its locations. It is more customer friendly and provides both options — delivery or pick-up from store. This initiative is expected to bolster sales.
The company projects revenues in 2021 between $450 million and $470 million. It had reported revenues of $193 million in 2020. Full-year adjusted EBITDA guidance has been raised to the range of $54 million to $58 million.
Share Price Performance
Over the past year, GrowGeneration has soared 505.7% compared with the industry’s rally of 86.5%.
Zacks Rank & Other Stocks to Consider
GrowGeneration currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the basic materials space include ArcelorMittal (MT - Free Report) , Celanese Corp. (CE - Free Report) and Dow Inc. (DOW - Free Report) . All of these stocks flaunt a Zacks Rank #1 (Strong Buy) currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
ArcelorMittal has a projected earnings growth rate of 984.7% for the current fiscal year. The company’s shares have soared nearly 220% in the past year.
Celanese has an expected earnings growth rate of 68.3% for the current fiscal year. The company’s shares have rallied around 79% over the past year.
Dow has an estimated earnings growth rate of 261.6% for the current fiscal year. The company’s shares have gained roughly 78% in a year’s time.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>