On today’s Marijuana Market Update, I’ll answer a viewer email about a popular cannabis stock: Jushi Holdings Inc. (OTC: JUSHF).

Dan recently emailed me to ask:

Hi! Been watching JUSHF for quite a while and now that it’s around $1.60 per share, do you think we are at the bottom and it presents a solid, long-term buying opportunity?

Thank you for your question, Dan.

First, let’s talk about the company.

Jushi Holdings Inc. Deep Dive

Jushi Holdings Inc. (OTC: JUSHF) is based in Boca Raton, Florida. It cultivates, processes and distributes medical and adult-use cannabis products in Pennsylvania, Virginia, Ohio, Illinois, California, Nevada and Massachusetts.

It also offers hemp-based CBD products under brand names like:

  • The Bank.
  • The Lab.
  • Nira+ Medicinals.
  • And Tasteology.

Jushi also operates 32 retail locations.

During the first quarter of 2022, JUSHF:

  • Acquired The Apothecarium, a Las Vegas-based adult-use and medical cannabis dispensary chain.
  • Acquired NuLeaf Inc. in Nevada, which includes a massive cultivation plant and processing facility.
  • And it launched its flower brands, The Bank and Seche in Massachusetts.

But Jushi’s stock is still well off its highs.

jushi stock

When Dan wrote me last week, Jushi traded around $1.60 per share. Since then, it fell to around $1.49 per share.

JUSHF rose 2% on Monday as the rest of the market sold off. That’s not market-beating movement, but it’s something to consider.

The stock is about $0.80 below its 50-day simple moving average — which is bearish.

JUSHF Cannabis Power Rating

Let’s look at our Cannabis Power Ratings system to see where JUSHF ranks among other cannabis stocks.

Overall, the stock scores a 32, which is “Bearish,” with a 12 on momentum and a 60 on value.

JUSHF has crashed 74% in the last 12 months. Monday’s 2% jump was nice to see, but it’s too soon to tell if this is a sustainable uptrend.

So let’s focus on its value.

JUSHF Value + Holdings

I compared its price-to ratios (earnings, sales and book values) to industry averages. In this case, the program I use compared Jushi to the agriculture industry.

For the record, the program I use puts most cannabis growers in the agriculture industry.

Right now, JUSHF has a price-to-earnings ratio of 6.43, compared to the industry average of 13.4 — so Jushi is about half the average … which is good in terms of value.

Its price-to-sales ratio is 1.22, while the industry average is 4.22 — another good sign for JUSHF’s value.

However, its price-to-book ratio is 1.39 … a bit higher than the industry average of 1.14.

All of this suggests that JUSHF is a decent value when compared to other industry-related stocks.

Long-Term Potential for JUSHF

To answer Dan’s question, I think there are strong long-term prospects for JUSHF, but I don’t know if the 2% uptick at the beginning of the week is enough to go on.

That is the biggest issue I have right now with this and other cannabis stocks.

I just don’t know if we have hit a bottom yet.

If the broader market downturn continues, it will present stronger headwinds for the entire cannabis market. Investors are watching two things right now: the overall trend in stock prices and cannabis legalization efforts.

Bottom line: JUSHF is expanding more into Nevada and growing product offerings in other states. And it’s doing so at a pace as not to overextend. Acquiring a cultivation and processing facility along with new retail keeps potential supply issues to a minimum.

In all, I want to see a more profound uptrend in the stock before I would sign off on a buy here.

That’s all for me this week.

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Safe trading,

Matt Clark

Research Analyst, Money & Markets