Why GRWG is Up Today

3 min readJan 14, 2021

4 reasons why GrowGeneration stock will continue on the upside

grwg growgeneration stock up on revenue increases of hydroponics and cannibis equipment — Source: Hydroponics at home setup

Ready to start your stock trading journey? Open a Webull trading account and receive 4 free stocks valued up to $3700.

$GRWG 🌿 ($50.48, +5.2%)

Shares of GrowGeneration (NASDAQ: GRWG) were up as much as 9.1% today, retesting the all-time highs that it achieved 4 days ago. Despite trading at a high multiple, here are 4 reasons why $GRWG will continue to the upside:

2021 Forecast

GrowGeneration had a monster year as it reported a 140% increase in revenue, growing from $80 million in 2019 to $192 million in 2020. The company is looking to be the “Home Depot for cannabis” as it employs a roll-up strategy to acquire retail locations to fuel its organic growth. On Monday, the company confidently pre-announced an 18% increase to its revenue guidance from the prior outlook of $280-$300 million dollars all the way up to $335-$350 million for 2021.

Political Climate

The 2020 elections gave the perfect outcome for GrowGeneration and the entire cannabis industry. During the election, five states including conservative states such as Arizona and Montana passed bills for the legalization of cannabis. With a complete Democratic sweep by Biden, the House, and the Senate, many are expecting legalization to expand into more states, making it a boon for GrowGeneration’s 2021 revenue potential.

Hydroponics Hedge

While GrowGeneration is enjoying the secular growth of the cannabis industry, it is ultimately a hydroponics company that offers products for the general indoor growing and horticultural industries. With this play into hydroponics, $GRWG enjoys the industry lift while being less volatile than its counterparts that have pure-play cannabis exposure.

Technicals

grwg growgeneration stock chart with upward trend on 20ema — $GRWG stock chart

From a technicals perspective, $GRWG has been on an upward trend since the earnings release in early November. $GRWG has been observing the 20 EMA, forming higher highs and higher lows along the 20 EMA support. With multiple factors acting as catalysts for $GRWG, Stock Techie remains strongly bullish on the stock for 2021. We will hold a core position but take advantage of swing trade opportunities along the trend.

stock techie portfolio for Thursday January 14, 2021.

Portfolio Summary

The portfolio continued the strong January start, as it grew +1.8% 📈 despite the market sliding -0.4% 📉 for the S&P500 and -0.2% 📉 for the Dow. The portfolio was led by gains in $CFACU (+27.4% 📈), $FVRR (+6.1% 📈), and $GRWG (+5.1% 📈). Price action dictated no portfolio transactions for the day.