In this article, we discuss 10 medical marijuana stocks to buy now. If you want to see more stocks in this list, check out 5 Medical Marijuana Stocks to Buy Now.
Medical Marijuana, also called medical Cannabis, is a herbal drug derived from plants of the genus Cannabis that is used as part of the treatment for specific symptoms or diseases, including cancer, chronic pain, and a number of physical and mental disorders. As the push for legalization at home and abroad grows, alongside the impact of the Covid-19 pandemic, marijuana is garnering significant attention from investors, manufacturers, and policy makers across multiple regions. According to a report, the market exhibited a tremendous growth of 50.92% at $20.47 billion in 2020, and is projected to grow from $28.266 billion in 2021 to $197.74 billion in 2028 at a CAGR of 32.04% between 2021 and 2028.
Both Canada and the United States are considered the top contenders in the legal marijuana space, with both countries possessing certain attributes that give them an edge over the other. However, based on reports presented by the Wall Street Journal, US-based companies are likelier to overtake their Canadian counterparts in the coming quarters, in light of the rapid legalization of marijuana and a bigger market for the drug existing in the country. A research report by Pew Research Center suggests an overwhelming share of US adults (91%) say either that marijuana should be legal for medical and recreational use (60%) or that it should be legal for medical use only (31%). Fewer than one-in-ten (8%) say marijuana should not be legal for use by adults.
The above serves to prove that the marijuana industry is set to become a highly lucrative investment opportunity that offers your portfolio an excellent source of growth, with companies like Jazz Pharmaceuticals Inc. (NASDAQ:JAZZ), Tilray, Inc. (NASDAQ:TLRY), Innovative Industrial Properties, Inc. (NYSE:IIPR), and Cara Therapeutics, Inc. (NASDAQ:CARA) ready to rake in the benefits due to these developments.
Our Methodology
For our list, we chose stocks based on their performance in the marijuana industry. The business fundamentals and analyst ratings for these firms are also discussed to provide readers with some additional context for their investment choices. The hedge fund sentiment around each stock was derived from Insider Monkey’s database where applicable.
Best Medical Marijuana Stocks to Buy Now
10. Green Thumb Industries Inc. (OTC:GTBIF)
Number Of Hedge Fund Holders: N/A
Green Thumb Industries Inc. (OTC:GTBIF) is a national cannabis consumer packaged goods company and retailer that manufactures and distributes a portfolio of branded marijuana and cannabis products including Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles and RYTHM.
The medicinal and recreational cannabis distributer saw its Q1 2022 net income skyrocket 179% to $28.9 million ($0.12 per basic and diluted share) compared to the prior-year period amid a significant revenue boost. Additionally, the company’s EPS came in at $0.09, surpassing market estimates by $0.04.
On July 22, Seaport Global analyst Sonny Randhawa initiated coverage of Green Thumb Industries Inc. (OTC:GTBIF) with a Buy rating and $15 price target. The analyst believes the cannabis group is “going through a bottoming process” and will be higher six months from now and amongst the best performing sectors over the next three to five years. Investors should buy the group today and use any market induced volatility to increase exposure, Randhawa tells investors in a research note. The analyst says the sector is “grossly misunderstood by the analyst community and plagued by an incessant amount of noise from Washington.” He sees the sector growing annually at 17% and anticipates the U.S. legal market to be $86 billion in 2030, with the overall market at $140 billion.
Much like Jazz Pharmaceuticals Inc. (NASDAQ:JAZZ), Tilray, Inc. (NASDAQ:TLRY), Innovative Industrial Properties, Inc. (NYSE:IIPR), and Cara Therapeutics, Inc. (NASDAQ:CARA), Green Thumb Industries Inc. (OTC:GTBIF) is a notable marijuana stock to buy.
9. Trulieve Cannabis Corp. (OTC:TCNNF)
Number Of Hedge Fund Holders: N/A
Trulieve Cannabis Corp. (OTC:TCNNF) is an American company that engages in the provision of medical cannabis products and services. It cultivates and produces its products in-house and distributes to its branded stores, as well as directly to patients via home delivery.
Earlier this May, Alliance Global Partners analyst Aaron Grey lowered the price target on Trulieve Cannabis Corp. (OTCMKTS:TCNNF) to C$50 from C$60 and maintained a Buy rating on the shares. The analyst notes that against a challenging industry backdrop, Trulieve delivered a strong quarter as sales and EBITDA came in above his and Street expectations, with the company maintaining its margin profile quarter-over-quarter and reiterating full year guidance. Further, he believes its strong cash position puts the company in a position to capitalize on attractive acquisition opportunities to expand in existing or enter new markets.
According to the company’s fiscal first quarter earnings report, Trulieve Cannabis Corp. (OTC:TCNNF) recorded an EPS of $0.01. Additionally, the firm’s revenue for the quarter came in at $318.3 million, an increase of 64.22% on a year-over-year basis, crossing forecasts by $11.87 million.
8. Village Farms International, Inc. (NASDAQ:VFF)
Number Of Hedge Fund Holders: 3
Village Farms International, Inc. (NASDAQ:VFF) is a vertically integrated marijuana grower and vegetable supplier based in Delta, British Columbia, Canada. It operates in both Canada and the United States through its wholly-owned subsidiaries, Pure Sunfarms and Balanced Health Botanicals.
Earlier this May, Craig-Hallum analyst Eric Des Lauriers lowered the price target on Village Farms International, Inc. (NASDAQ:VFF) to $5 from $15 to reflect inflation and macro valuation headwinds. However, the analyst maintained a Buy rating on the shares given the strong near-term growth expected in Canadian cannabis and discount versus peers.
According to Insider Monkey’s database, Village Farms International, Inc. (NASDAQ:VFF) was spotted on 3 investment portfolios by the end of the first quarter of 2022. The total stakes of these funds in the company amounted to approximately $2.43 million. Israel Englander’s Millennium Management is the largest stakeholder in Village Farms International, Inc. (NASDAQ:VFF) , with stakes valued at $2.36 million.
7. OrganiGram Holdings, Inc. (NASDAQ:OGI)
Number Of Hedge Fund Holders: 6
OrganiGram Holdings, Inc. (NASDAQ:OGI) is a Canadian company that covers several kinds of cannabis products and their distribution channels. Although it first began as a medical cannabis provider, the company is now focused on producing high-quality, indoor-grown cannabis for patients and adult recreational consumers in Canada, as well as developing international business partnerships to extend the company’s global footprint.
On July 15, Alliance Global Partners analyst Aaron Grey lowered the price target on Organigram Holdings, Inc. (NASDAQ:OGI) to C$1.50 from C$2.25 and kept a Neutral rating on the shares. The company reported sales above Street expectations driven by strong Canadian adult-use sales, though its EBITDA came in slightly below estimates due to lower gross margins. The analyst continues to look for sustained and improved profitability “amid what could remain a competitive Canadian adult-use market”.
OrganiGram Holdings Inc. (NASDAQ:OGI) posted strong revenue growth during its fiscal third quarter of 2022. The company registered earnings per share of -$0.01, beating market estimates by $0.01. The revenue for the quarter came in at $29.09 million, an increase of 79.14% on a year-over-year basis, crossing estimates by $3.02 million.
At the end of the first quarter of 2022, 6 hedge funds in the database of Insider Monkey held stakes worth $5.64 million in Organigram Holdings, Inc. (NASDAQ:OGI), down from 9 the preceding quarter worth $11.47 million. D E Shaw is the leading shareholder in Organigram Holdings, Inc. (NASDAQ:OGI), with more than 1.78 million shares worth more than $2.96 million.
6. Aurora Cannabis Inc. (NASDAQ:ACB)
Number Of Hedge Fund Holders: 9
Cronos Group Inc. (NASDAQ:CRON) is a company focused on medical marijuana and recreational cannabis for adult use that is best known for producing, selling, and marketing products in Canada, Germany, Israel, Italy and Australia. The company reported $45.7 million in medical marijuana sales in the second quarter of the fiscal year 2022, representing 75% of total income.
Earlier this June, Cantor Fitzgerald analyst Pablo Zuanic upgraded Aurora Cannabis Inc. (NASDAQ:ACB) to Overweight from Neutral with a price target of C$4.05, up from C$3.90. The analyst views Aurora as an attractively valued pure cannabis play, and expects Europe, and more specifically Germany, to be a “relevant potential catalyst and sentiment driver” for cannabis stocks over the next 12-18 months.
At the end of the first quarter of 2022, 9 hedge funds in the database of Insider Monkey held stakes worth $40.8 million in Aurora Cannabis Inc. (NASDAQ:ACB), compared to 11 in the preceding quarter worth $69.6 million.
Similar to Jazz Pharmaceuticals Inc. (NASDAQ:JAZZ), Tilray, Inc. (NASDAQ:TLRY), Innovative Industrial Properties, Inc. (NYSE:IIPR), and Cara Therapeutics, Inc. (NASDAQ:CARA), Aurora Cannabis Inc. (NASDAQ:ACB) is one of the stocks that investors are keeping their eye on.
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Disclose. None. 10 Medical Marijuana Stocks to Buy Now is originally published on Insider Monkey.
