February 1, 2023

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14 Best Marijuana Stocks To Buy Now

In this article, we will discuss the 14 Best Marijuana Stocks To Buy Now. You can skip our detailed industry analysis and go directly to the 5 Best Marijuana Stocks To Buy Now.

The cannabis industry is expected to undergo rapid changes in the coming years. One reason is the increasing awareness of the health benefits of cannabis and the legalization movement, which is growing stronger as time passes. Currently, the use of marijuana for recreational purposes is legalized in 23 states in the United States. In 2020, the global cannabis market size stood at $20.47 billion. The global cannabis market is expected to grow at a high CAGR of 32.04% to reach $197.74 billion in 2028.

With the rising usage and popularity of marijuana, major companies are investing in the industry. For example, Molson Coors is already considering introducing a cannabis-infused beverage. Such major players in the alcohol beverage sector will pave a new path for the growing marijuana market. Edibles are also on the list of these newly developed cannabis-based products.

Cancer researchers have reported that the use of CBD and THC not only slows down the growth of cancer but also eliminates certain types of cancer cells. These revelations are nothing but good news for the global cannabis market as more and more investments can be made to support the cause and ultimately create new opportunities for the market as a whole. In 2020, the size of the global market of medical cannabis was $6.82 billion, which is expected to grow to $53.88 billion by 2030 at a CAGR of 23.6% during 2021-2030.

ETFMG Alternative Harvest ETF (MJ) is the first ETF in the United States to target the global cannabis industry. The ETF is designed to track the performance of companies operating in the cannabis industry as they continue to benefit from the legalization movement and the rising medicinal use of cannabis products.

Photo by Terre di Cannabis on Unsplash

Our Methodology

We started with the holdings of ETFMG Alternative Harvest ETF (MJ) and ranked them using Insider Monkey’s proprietary hedge fund sentiment database, which consists of the holdings of 920 elite hedge funds. That means these marijuana stocks are popular among the smart money. Some of these companies aren’t pure-play marijuana stocks but benefit from the growth of this industry.

14. Leafly Holdings, Inc. (NASDAQ:LFLY)

Number of Hedge Fund Holders: 9

Leafly Holdings, Inc. (NASDAQ:LFLY) is an online platform that provides information about cannabis products and allows consumers to connect to cannabis brands and retailers. Leafly Holdings, Inc. (NASDAQ:LFLY) provides cannabis merchants and brands with subscription-based marketplace listings, digital advertising solutions, and software as service-based tools, as well as information, reviews, menus, ordering, and delivery choices to its audience via its website and mobile applications.

On November 12, 2022, Leafly Holdings, Inc. (NASDAQ:LFLY) reported Q3 2022 results reporting revenue of $11.7 million for the quarter, recording a growth of 8.12% YoY. The company posted a Normalized EPS of -$0.16 for the quarter, beating the market estimate by $0.01. With the pace of growth declining, the company reduced 21% of its headcount in Q3 2022 to sustain operating margins.

As per Insider Monkey’s database, 9 hedge funds owned stakes in Leafly Holdings, Inc. (NASDAQ:LFLY) at the end of the September quarter.

13. Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)

Number of Hedge Fund Holders: 9

Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) is a leading manufacturer and supplier of controlled environment agriculture equipment and supplies, with a diverse portfolio of its own patented and creative branded products. In controlled environments, the company’s products are used to cultivate cannabis, flowers, fruits, plants, vegetables, cereals, and herbs. Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) primarily serves the US and Canadian markets.

On November 10, 2022, Bill Chappell, an analyst at Truist, reduced his price target on Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM). The analyst currently has a Buy rating on the stock but believes that the company’s Q3 results sent mixed signals as it achieved better than expected net sales but lower EBITDA,

As per Insider Monkey’s database, 9 hedge funds remained bullish on Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) at the end of Q3 2022. Alyeska Investment Group came out to be the biggest holder of the company’s shares at the end of the quarter.

Baron Funds mentioned Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) in its Q4 2021 investor letter. Here is what the fund said:

Our top 10 holdings represented 25.6% of the Fund’s net assets at the end of the fourth quarter. This is in line with historical weightings. Cash at the end of the quarter was 3.4%, which is in line with our low to mid-singledigit targeted levels. We exited our position in Hydrofarm Holdings Group, Inc. as we felt the macro headwinds the company was facing in its end-markets were both challenging and worsening.

12. Aurora Cannabis Inc. (NASDAQ:ACB)

Number of Hedge Fund Holders: 9

Headquartered in Edmonton, Canada, Aurora Cannabis Inc. (NASDAQ:ACB) manufactures, distributes, and sells cannabis-related products. In addition, the company manufactures and sells indoor cultivation systems and hemp-related food products.

On September 21, 2022, Michael Lavery, an analyst at Piper Sandler, reduced his price target on Aurora Cannabis Inc. (NASDAQ:ACB) to $3. The analyst keeps a Neutral rating on the company’s shares and, in a research note, stated that Aurora Cannabis Inc. (NASDAQ:ACB) experienced some margin pressure in its recent Q4 results.

As per Insider Monkey’s database, 9 hedge funds owned stakes in Aurora Cannabis Inc. (NASDAQ:ACB) at the end of the third quarter.  Renaissance Technologies remained the leading stakeholder of the company at the end of Q3 2022.

11. Innovative Industrial Properties, Inc. (NYSE:IIPR)

Number of Hedge Fund Holders: 12

Innovative Industrial Properties, Inc. (NYSE:IIPR) is a real estate investment trust that is managed internally. The company’s primary focus is the acquisition, ownership, and administration of specialized industrial properties that are leased to expert, state-licensed operators for their regulated medical-use cannabis businesses. Across the United States, Innovative Industrial Properties, Inc. (NYSE:IIPR) owns around 103 properties totaling approximately 7.7 million rentable square feet.

On November 09, 2022, Scott Fortune, an analyst at Roth Capital, reduced his price target to $170 on Innovative Industrial Properties, Inc. (NYSE:IIPR) while keeping a Buy rating on the stock. The analyst believes that the deteriorating macro-environment is having an impact on the company as its pace of acquisition has now slowed. However, despite the current challenges, Innovative Industrial Properties, Inc. (NYSE:IIPR) pipeline is strong, and it is well-positioned for growth in 2023.

At the end of Q3 2022, 12 hedge funds in Insider Monkey’s database were long on Innovative Industrial Properties, Inc. (NYSE:IIPR) at the end of the quarter. Zimmer Partners remained the leading stakeholder of the company at the end of Q3 2022.

10. Canopy Growth Corporation (NASDAQ:CGC)

Number of Hedge Fund Holders: 13

Canopy Growth Corporation (NASDAQ:CGC) manufactures, distributes, and sells a wide variety of cannabis and hemp-based products in Canada under a portfolio of its several brands that include CraftGrow, Tweed, and Spectrum Therapeutics. The company’s operations are based in Canada, the United States, and Germany.

On November 09, 2022, Canopy Growth Corporation (NASDAQ:CGC) reported its fiscal Q2 2023 results reporting revenue of $87.1 million, recording a decline of 17.4% YoY. The company’s Normalized EPS of -$0.24 missed the market estimates by $0.05.

13 hedge funds are currently bullish on Canopy Growth Corporation (NASDAQ:CGC) as per Insider Monkey’s database. Contrarius Investment Management had the leading stake in the company at the end of Q3 2022.

9. Turning Point Brands, Inc. (NYSE:TPB)

Number of Hedge Fund Holders: 14

Turning Point Brands, Inc. (NYSE:TPB) is a marketer, manufacturer, and distributor of branded consumer items. Turning Point Brands, Inc. (NYSE:TPB) operates in three divisions: Zig-Zag Products, Stoker’s Products, and NewGen Products. The company sells rolling papers and make-your-own cigar wraps, loose-leaf chewing tobacco, liquid vapor, CBD, nutraceuticals, and other products.

On October 26, 2022, Turning Point Brands, Inc. (NYSE:TPB) reported its Q3 2022 result, reporting revenue of $107.8 million, recording a decrease of 1.9% YoY. The company’s Normalized EPS of $0.72 beat the market estimate by $0.11.

According to Insider Monkey’s database, 14 hedge funds owned stakes in the company at the end of the September quarter. Mangrove Partners held the biggest stake in Turning Point Brands, Inc. (NYSE:TPB) at the end of Q3 2022.

8. WM Technology, Inc. (NASDAQ:MAPS)

Number of Hedge Fund Holders: 15

WM Technology, Inc. (NASDAQ:MAPS) is a marketplace and technology solutions provider that primarily serves the cannabis industry, which includes consumers, merchants, and brands in the cannabis markets in the United States and Canada. The company’s business comprises a marketplace, Weedmaps, and monthly subscription software offering.

On November 08, 2022, David Hynes, an analyst at Canaccord, reduced his price target on WM Technology, Inc. (NASDAQ:MAPS) to $4.75. The analyst currently keeps a Buy rating on the stock and believes that the company is taking all the measures it can take in a challenging market in California.

As per Insider Monkey’s database, 15 hedge funds remained bullish on WM Technology, Inc. (NASDAQ:MAPS) at the end of the third quarter. Rima Senvest Management had the biggest stake in the company at the end of the third quarter.

7. Mativ Holdings, Inc. (NYSE:MATV)

Number of Hedge Fund Holders: 15

Mativ Holdings, Inc. (NYSE:MATV) is a multi-product manufacturer of premium specialty papers and resin-based goods. The company manufactures and sells tobacco paper, reconstituted tobacco products, and specialized paper products. Mativ Holdings, Inc. (NYSE:MATV)’s business is divided into two divisions: Advanced Materials & Structures and Engineered Papers.

On November 10, 2022, Mativ Holdings, Inc. (NYSE:MATV) reported revenue of $674.1 million, posting a growth of 75.7% from the same period last year. The Normalized EPS of $0.74 for the quarter missed the market estimate by $0.07.

According to Insider Monkey’s database, 15 hedge funds held stakes in Mativ Holdings, Inc. (NYSE:MATV) at the end of the third quarter ending September 2022. Rubric Capital Management remained the leading stakeholder in the company at the end of Q3 2022.

Here is what First Pacific Advisors specifically said about Mativ Holdings, Inc. (NYSE:MATV) in its Q2 2022 investor letter:

Mativ Holdings, Inc. (NYSE:MATV) (previously Schweitzer-Mauduit) is a specialty paper and materials maker that has struggled with supply chain issues and cost inflation. In March, the company agreed to an all-stock combination with Neenah, a specialty paper company we had previously researched. We are evaluating the deal.

6. Tilray Brands, Inc. (NASDAQ:TLRY)

Number of Hedge Fund Holders: 16

Tilray Brands, Inc. (NASDAQ:TLRY) is a cannabis-lifestyle and consumer packaged goods company based in the United States that focuses on cannabis research, processing, production, and its distribution. Tilray Brands, Inc. (NASDAQ:TLRY) creates cannabis-based treatments, pills, drops, and oil. Tilray Brands, Inc. (NASDAQ:TLRY) has thousands of customers in over 20 countries.

On November 01, 2022, Nadine Sarwat, an analyst at Bernstein, started coverage of Tilray Brands, Inc. (NASDAQ:TLRY) with a Market Perform rating and a price target of $3.90. The analyst stated in a research note to investors that Tilray Brands, Inc. (NASDAQ:TLRY)’s cannabis business has the best gross margins in the industry and is well on its path to achieving positive free cash flow in the current fiscal year.

As per Insider Monkey’s database, 16 funds remained bullish on the company at the end of Q3 2022. D E Shaw had the biggest long position on the company’s shares at the end of the third quarter.

Click to continue reading and see 5 Best Marijuana Stocks to Buy Now.

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Disclosure: None. 14 Best Marijuana Stocks To Buy Now is originally published on Insider Monkey.