Why Ayr Wellness could continue to be a hot buy
Long-term investors will want to zero in on the company's outlook for 2022, when it anticipates that it will benefit from investments in multiple markets, including Arizona, Florida, Massachusetts, New Jersey, Ohio, and Pennsylvania. The company projects that in 2022, its revenue will hit $725 million and adjusted EBITDA will come in at $325 million.
If it hits those targets, that would double its current results -- Ayr Wellness projects that for next quarter, its revenue will top $90 million. At $725 million, it would be averaging more than $180 million in quarterly revenue. Add to that an EBITDA margin of 45% and you have a fast-growing pot stock that's also profitable. That's a combination that could make Ayr Wellness a scorching-hot buy.
Currently, the stock is trading at a forward price-to-sales (P/S) multiple of 4.4, which is relatively cheap compared to other pot stocks