Investors who added the Denver-based hydroponics innovator GrowGeneration GRWG to their portfolios some five years ago, must now be quite happy at the stock's hefty returns.
Despite COVID's negative effect on the overall economy for the past two years, some industries, like pharma, e-commerce and online gaming thrived. And the cannabis industry also experienced unexpected growth, with some weed-related stocks continuing to see gains.
Over the last five years, GrowGeneration’s stock has outperformed some of the most popular stocks in the world, such as Apple AAPL, Netflix NFLX, Meta Platforms FB (previously Facebook) and Amazon AMZN.
Although far from a “pure-play” cannabis stock, GrowGeneration’s connection to the marijuana industry is perfectly clear, as the company distributes much-needed agricultural products to U.S. cannabis companies. It runs retail hydroponic and organic specialty gardening retail stores that provide plant nutrition, advanced lighting technology and farming soil, among other agricultural needs.
Over the last several years, GrowGeneration grew its own business through numerous acquisitions; it currently oversees 63 stores across 13 states and operates an online superstore for cultivators, a B2B e-commerce platform and a manufacturer of indoor vertical racking systems.
In its recent earnings report for the fourth quarter and full-year 2021, the company disclosed full-year revenue of $422.5 million, compared to $193.4 million for the full year 2020, an increase of 118%, including the contribution from acquisitions.
Here's how the returns break down from March 2017 to the present:
Facebook is up from $139.84 a share to $195.21 for a return of 39.6%;
Netflix is up from $145.11 a share to $356.77 for a return of 145.86%;
Amazon is up from $852.31 a share to $2,936.35 for a return of 244.52%;
Apple is up from $35.92 a share to $158.52 for a return of 341.31%;
And finally, GrowGeneration is up from $1.77 per share to $8.79 for a return of 396.61%.
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