10 Best Marijuana Stocks To Buy According to Hedge Funds

5. Canopy Growth Corporation (NASDAQ:CGC)

Number of Hedge Fund Holders: 9

Canopy Growth Corporation (NASDAQ:CGC), together with its subsidiaries, engages in the production, distribution, and sale of cannabis and cannabinoid-based products for both adult use and medical purposes.

Canopy Growth Corporation (NASDAQ:CGC) had a tough fiscal Q2 2025, as it posted a revenue of $45.27 million, down by around 10.2% YoY and missing the analysts’ estimates by $2.63 million. However, the company still witnessed growth across its medical cannabis businesses, with net revenue increasing YoY by 16% in Canada and 12% in international markets. Moreover, Canopy’s Germany-based Storz & Bickel business, known for premium high-margin devices like the Volcano and Venti, delivered an overall net revenue growth of 32% YoY.

The quarter was especially remarkable for Canopy Growth Corporation (NASDAQ:CGC)’s European business, where sales grew by 72% YoY. The company’s asset-light model for Europe is also coming online now, supported by agreements with multiple EU-based cultivators, and is expected to provide the scalability it needs to meet rising demand over the coming quarters without the need for heavy capital investments.

Canopy Growth Corporation (NASDAQ:CGC)’s free cash outflow during the quarter was $56 million, representing a 16% improvement YoY, primarily driven by a reduction in cash interest expenses. It further improved its balance sheet with early prepayment, reducing senior secured term loan by $100 million.

Canopy Growth Corporation (NASDAQ:CGC) is also positioning itself to be a top Canadian entrant in the US market. Earlier this month, it announced the acquisition of Acreage, a multi-state operator of cannabis ‎cultivation and retailing facilities in the country. This comes after Canopy had already announced the acquisitions of Wana Wellness, The CIMA Group, and Mountain High Products in October.

Shares of Canopy Growth Corporation (NASDAQ:CGC) were held by 9 hedge funds tracked by IM at the end of Q3 2024, compared to 8 in the previous quarter.