GRWG Stock Price: GrowGeneration Corp continues its surge after record sales report

NASDAQ:GRWG gained another 9.31% on Tuesday after nearly doubling in price since last week.
Cannabis industry begins to re-awaken amidst COVID-19 quarantine.

NASDAQ:GRWG has resurrected hope amongst investors that the cannabis industry is finally starting to rebound after getting trounced the last few years. Shares of the hydroponic industry leader have spiked dramatically over the course of the last week after its recent quarterly earnings call showed record sales numbers during the coronavirus pandemic. Sales rose to $43.5 million which is over 120% higher year-over-year – marking the tenth consecutive quarter where sales have increased. Further to this, its adjusted EBITDA rose by over 160% to $4.6 million giving GrowGeneration some gaudy numbers, in an industry full of companies that are struggling to keep their heads above water.

GrowGeneration has capitalized on its consumers being stuck at home during the COVID-19 quarantine as well as state laws loosening on the consumption and production of cannabis. The firm has cornered the market in providing hydroponic and organic gardening supplies to companies and consumers who are growing their own marijuana plants. Currently, the Denver Colorado-based firm owns 28 organic garden centers in ten different states across the country. While gardening supplies and hydroponic tools are its bread and butter – GrowGeneration also specializes in greenhouse design and solutions for clients with more large scale operations.

GRWG Stock News

GrowGeneration’s stock has nearly doubled since the earnings report was announced late last week and the stock continued to rise on Tuesday despite a single-day rise in the price of nearly 50% on Monday. Shares are now trading at over 150 times expected earnings which may mean that the price has climbed too high, too fast. It should be noted that while Wall Street analysts are bullish on GRWG, the median price target is only slightly above $12 so there could be some correction in the near future.

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