12 Best Hemp Stocks To Buy Now
In this article, we will look at the 12 best hemp stocks to buy now. If you want to explore similar stocks, you can also take a look at 5 Best Hemp Stocks To Buy Now.
The Global Marijuana Industry
According to an industry analysis report by Research and Markets, the global marijuana market size was estimated at $25.6 billion in 2021. The market is expected to grow at a compound annual growth rate of 24% and reach a valuation of $176 billion by 2030. As consumers become more aware of the potential health benefits of using marijuana to treat neurological diseases, the drug is expected to attain legal status in countries around the world.
According to Grand View Research, the global legal marijuana market was worth $13 billion in 2021 and is expected to reach a value of $101.9 billion by 2030, registering a CAGR of 25.5%. The driver for this growth is the increasing adoption and legalization of medical marijuana. As of 2022, 19 U.S. states and 2 U.S. territories have legalized the use of recreational marijuana and 37 U.S. states and 4 U.S. territories, including D.C., have legalized medical marijuana. While North America accounted for 80% of the share of the global legal marijuana market in 2021, South American countries, and European countries such as the United Kingdom, are also decriminalizing and legalizing marijuana in regulated quantities and for specific uses.
The marijuana industry is an emerging and secular growth industry, driven by favorable legislation and increasing adoption of the medicinal use of marijuana around the world. Companies operating in the space are expected to experience strong secular growth and can become fruitful long-term investments. Industry-leading companies like Altria Group, Inc. (NYSE:MO), Philip Morris International Inc. (NYSE:PM), and Constellation Brands, Inc. (NYSE:STZ) are dipping their toes in the lucrative marijuana market and exploring investment opportunities. However, in this article, we will specifically discuss pure-play hemp stocks.
Our Methodology
We reviewed the marijuana industry and identified the key players. We narrowed down our selection to companies that have solid product pipelines and positive market sentiment. Along with each stock, we have mentioned the hedge fund sentiment, analyst ratings, top shareholders, and business models. The hedge fund sentiment was derived from Insider Monkey's database of roughly 900 elite hedge funds.
Best Hemp Stocks To Buy Now
12. Ayr Wellness Inc. (OTC:AYRWF)
Number of Hedge Fund Holders: N/A
Ayr Wellness Inc. (OTC:AYRWF) is a leading multi-state operator of cannabis and is involved in the manufacture and retail of cannabis products and cannabis packaged goods. The company offers cannabis concentrates, edibles, and vaporizers, among other cannabis-based products. On September 22, Ayr Wellness Inc. (OTC:AYRWF) launched its leading cannabis brand, Lost in Translation, in four U.S. states: Arizona, Florida, New Jersey, and Pennsylvania.
This August, Northland analyst Greg Gibas revised his price target on Ayr Wellness Inc. (OTC:AYRWF) to $10 from $14 and reiterated a buy-side Outperform rating on the shares. On August 19, Canaccord analyst Matt Bottomley adjusted his price target on Ayr Wellness Inc. (OTC:AYRWF) to C$30 from C$40 and maintained a Buy rating on the shares.
Ayr Wellness Inc. (OTC:AYRWF) has a consensus Strong Buy rating from Wall Street analysts. Over the past three months, the stock has received 5 Buy ratings and 1 Hold rating and has an average price target of $12, which implies a 409% upside from current levels. As of June 30, Ancora Advisors owns 7,300 shares of Ayr Wellness Inc. (OTC:AYRWF) which amounts to a stake of $35,000.
Some of the top large-cap stocks that have exposure to the marijuana market include Altria Group, Inc. (NYSE:MO), Philip Morris International Inc. (NYSE:PM), and Constellation Brands, Inc. (NYSE:STZ).
11. Trulieve Cannabis Corp. (OTC:TCNNF)
Number of Hedge Fund Holders: N/A
Trulieve Cannabis Corp. (OTC:TCNNF) is a leading American producer and cultivator of medical and recreational cannabis. Trulieve Cannabis Corp. (OTC:TCNNF) is one of the best marijuana stocks to buy now and has a consensus Strong Buy rating from Wall Street analysts. Over the past three months, 10 Wall Street analysts have given the stock Buy ratings. The stock has an average price target of $31 which represents an upside of 267% from current levels.
On August 10, Trulieve Cannabis Corp. (OTC:TCNNF) announced earnings for the second quarter of fiscal 2022. The company reported sales of $320 million, up 49% year over year. Shortly after its earnings release, Stifel analyst Andrew Partheniou revised his price target on Trulieve Cannabis Corp. (OTC:TCNNF) to C$36.50 from C$40 and reiterated a Buy rating on the shares. This August, Canaccord analyst Derek Dley adjusted his price target on Trulieve Cannabis Corp. (OTC:TCNNF) to C$57 from C$65 and maintained a Buy rating on the shares.
As of June 30, Tamarack Capital Management is the top shareholder in Trulieve Cannabis Corp. (OTC:TCNNF) and owns 7,500 shares of the company which amounts to a stake of $86,000.
10. Jushi Holdings Inc. (OTC:JUSHF)
Number of Hedge Fund Holders: N/A
Jushi Holdings Inc. (OTC:JUSHF) is a vertically integrated cannabis company that is involved in the cultivation, processing, retail, and distribution of medical and recreational cannabis and cannabis derivatives. On August 29, Jushi Holdings Inc. (OTC:JUSHF) announced market-beating earnings for the fiscal second quarter of 2022. The company reported earnings per share of $0.06 and outperformed estimates by $0.14. The company generated a revenue of $72.76 million, up 52.5% year over year, and beat Wall Street consensus by $3.16 million.
On July 22, Seaport Global analyst Sonny Randhawa started coverage of Jushi Holdings Inc. (OTC:JUSHF) with a Buy rating and a $3 price target. On August 30, Canaccord analyst Bobby Burleson revised his price target on Jushi Holdings Inc. (OTC:JUSHF) to $2.75 from $4.50 and maintained a Buy rating on the shares.
Over the past three months, Jushi Holdings Inc. (OTC:JUSHF) has received 3 Buy ratings and 1 Hold rating from Wall Street analysts and has a consensus Strong Buy rating. The stock has an average price target of $2.8 which represents an upside of 128.6%. Wall Street sees upside to Jushi Holdings Inc. (OTC:JUSHF) and the stock is one of the best marijuana stocks to buy now.
9. Verano Holdings Corp. (OTC:VRNOF)
Number of Hedge Fund Holders: N/A
Verano Holdings Corp. (OTC:VRNOF) is an American multi-state cannabis operator that is involved in the cultivation, processing, and retail of cannabis across the United States. The company's flagship brands include Encore, MUV, and Verano. On August 19, Verano Holdings Corp. (OTC:VRNOF) announced the opening of Zen Leaf Clarksburg, its fourth dispensary in West Virginia and 111th in the United States.
Verano Holdings Corp. (OTC:VRNOF) is a profitable cannabis company and also has free cash flows to fund its operations, therefore it is among the best marijuana stocks to buy now. As of September 30, the stock has a trailing twelve-month operating margin of 16.14% and free cash flows of $1.6 million.
On September 8, PI Financial analyst Jason Zandberg started coverage of Verano Holdings Corp (OTC:VRNOF) with a Buy rating and a C$22 price target. Over the past three months, the stock has received 2 Buy ratings and 1 Hold rating from Wall Street analysts and has an average price target of $11.28, which implies a 142.5% upside from current levels.
As of June 30, Westerly Capital Management owns 165,000 shares of Verano Holdings Corp. (OTC:VRNOF) which amounts to a stake of $0.93 million The investment covers 0.76% of Westerly Capital Management's 13F portfolio.
8. Green Thumb Industries Inc. (OTC:GTBIF)
Number of Hedge Fund Holders: N/A
Green Thumb Industries Inc. (OTC:GTBIF) is an American cannabis retailer that manufactures and distributes cannabis products for medical and recreational use. Among the company's products, we have cannabis flowers, pre-rolls, concentrates, edibles, and topicals among several other cannabis-based products. The company's primary brands include Dogwalkers, Doctor Solomon’s, and Good Green.
Green Thumb Industries Inc. (OTC:GTBIF) is a low-risk and profitable cannabis company to own and one of the best marijuana stocks to invest in now. According to the company's balance sheet, as of June 30, Green Thumb Industries Inc. (OTC:GTBIF) has a debt-to-equity ratio of 0.15. As of September 30, the company has a trailing twelve-month operating margin of 24.23%.
This August, Canaccord analyst Matt Bottomley revised his price target on Green Thumb Industries Inc. (OTC:GTBIF) to C$35 from C$40 and reiterated a Buy rating on the shares. Over the past three months, the stock has received 11 Buy ratings from Wall Street analysts and has a consensus Strong Buy rating. The stock's average price target sits at $23, which represents an upside of 147.5% from current share levels.
As of June 30, Zevenbergen Capital Investments has stakes worth $0.85 million in Green Thumb Industries Inc. (OTC:GTBIF) and is the most prominent investor in the company.
7. Curaleaf Holdings Inc. (OTC:CURLF)
Number of Hedge Fund Holders: N/A
Curaleaf Holdings Inc. (OTC:CURLF) is a leading North American cannabis company that operates medical and recreational marijuana dispensaries in over 20 U.S. states. The company's two primary brands are Curaleaf and Select. On September 19, Curaleaf Holdings Inc. (OTC:CURLF) announced that it has successfully acquired a majority stake in Four 20 Pharma, a licensed EU-GMP & GDP German producer and distributor of medical cannabis. Curaleaf Holdings Inc. (OTC:CURLF) now owns a 55% stake in Four 20 Pharma.
Wall Street analysts are bullish on Curaleaf Holdings Inc. (OTC:CURLF). This August, Alliance Global Partners analyst Aaron Grey revised his price target on Curaleaf Holdings Inc. (OTC:CURLF) to C$12 from C$15 and maintained a Buy rating on the shares. On August 9, Canaccord analyst Matt Bottomley revised his price target on Curaleaf Holdings Inc. (OTC:CURLF) to C$13.50 from C$14.50 and reiterated a Buy rating on the shares. Curaleaf Holdings Inc. (OTC:CURLF) has a consensus Strong Buy rating from Wall Street analysts. Over the past three months, the stock has received 9 Buy ratings and 1 Hold rating and has a median price target of $9, which implies an upside of 82.5%.
Curaleaf Holdings Inc. (OTC:CURLF) has low debt and is also showing the ability to maintain profitability. As of September 30, the stock has a trailing twelve-month operating margin of 11.83% and as of June 30, the company has a debt-to-equity ratio of 0.34. Curaleaf Holdings Inc. (OTC:CURLF) is among the best marijuana stocks to buy now.
6. Cresco Labs Inc. (OTC:CRLBF)
No. of Hedge Fund Holders: N/A
Cresco Labs Inc. (OTC:CRLBF) cultivates, manufactures, and sells retail and medical cannabis products in the United States. On August 17, Cresco Labs Inc. (OTC:CRLBF) announced earnings for the second quarter of fiscal 2022. The company reported a revenue of $218.2 million and outperformed Wall Street consensus by $68,000. As of June 30, the company has a debt-to-equity ratio of 0.60. The company has a trailing twelve-month operating margin of 14.67% and is therefore ranked high among the best marijuana stocks to buy now.
On August 18, Piper Sandler analyst Michael Lavery revised his price target on Cresco Labs Inc. (OTC:CRLBF) to $6 from $9 and maintained a buy-side Overweight rating on the shares. This August, Canaccord analyst Derek Dley revised his price target on Cresco Labs Inc. (OTC:CRLBF) to C$8 from C$9.50 and reiterated a Buy rating on the shares. Over the past three months, Cresco Labs Inc. (OTC:CRLBF) has received 5 Buy ratings and 2 Hold ratings from Wall Street analysts. The stock has an average price target of $6.75 which represents an upside of 149%.
As of June 30, Ancora Advisors is the leading shareholder in Cresco Labs Inc. (OTC:CRLBF) and owns more than 224,000 shares which amounts to a stake of $0.56 million.
For risk-averse investors that want to stick with owning established companies and mature businesses but also get some exposure to the marijuana industry, some of the top plays include Altria Group, Inc. (NYSE:MO), Philip Morris International Inc. (NYSE:PM), and Constellation Brands, Inc. (NYSE:STZ).
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Disclosure: None. 12 Best Hemp Stocks To Buy Now is originally published on Insider Monkey.
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