5 Best CBD Stocks To Buy Now

In this article, we discuss 5 best CBD stocks to buy now. If you want to see more stocks in this selection, check out 11 Best CBD Stocks To Buy Now. 

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

Number of Hedge Fund Holders: 12

Innovative Industrial Properties, Inc. (NYSE:IIPR) is a Maryland-based company specializing in acquiring, owning, and managing properties that are leased to licensed operators for medical cannabis facilities. The company has chosen to be treated as a real estate investment trust for tax purposes. It is one of the best marijuana stocks to invest in. Innovative Industrial Properties, Inc. (NYSE:IIPR) paid a $1.80 per share quarterly dividend to shareholders on January 13, with a forward yield of 6.31%. 

On January 19, Innovative Industrial Properties, Inc. (NYSE:IIPR) reported that as of December 31, 2022, it owned 110 properties in 19 states. During 2022, the company made 9 acquisitions of properties in 7 states and revised 12 leases to allow for additional improvements at properties located in 7 states. The company’s financial status as of December 31, 2022 showed that its debt constituted 12% of its total gross assets, with approximately $2.6 billion in total assets and a quarterly fixed cash interest obligation of around $4.2 million. It had no secured debt and no debt maturing until May 2026.

BTIG analyst Thomas Catherwood on January 24 maintained a Buy rating on Innovative Industrial Properties, Inc. (NYSE:IIPR) but lowered the firm’s price target on the shares to $179 from $196. 

According to the third quarter database of Insider Monkey, 12 hedge funds were long Innovative Industrial Properties, Inc. (NYSE:IIPR), compared to 16 in the prior quarter. Stuart J. Zimmer’s Zimmer Partners is the latest stakeholder of the company, with 1.95 million shares worth $172.5 million. 

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

Number of Hedge Fund Holders: 15

WM Technology, Inc. (NASDAQ:MAPS) is a California-based provider of e-commerce and compliance software solutions to retailers and brands in the cannabis industry worldwide, including in the United States and Canada. Its offerings include the Weedmaps marketplace, which allows cannabis consumers to search for and view products from retailers and brands, and reserve products from local stores. Additionally, WM Technology, Inc. (NASDAQ:MAPS) provides information on cannabis and the industry, as well as advocacy services for legalization. It is one of the best marijuana stocks to monitor. 

On November 8, Canaccord analyst David Hynes reiterated a Buy rating on WM Technology, Inc. (NASDAQ:MAPS) but lowered the firm’s price target on the shares to $4.75 from $6. The analyst noted that data from California, which accounts for more than half of the company’s business, showed a 10% decrease in licensed sales in the quarter. Despite the difficult market conditions, Hynes stated that WM Technology, Inc. (NASDAQ:MAPS) was able to maintain a stable performance year-over-year.

According to Insider Monkey’s data, 15 hedge funds were bullish on WM Technology, Inc. (NASDAQ:MAPS) at the end of Q3 2022, compared to 14 funds in the earlier quarter. Richard Mashaal’s Rima Senvest Management is the largest stakeholder of the company, with 7.35 million shares worth $11.8 million. 

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

Number of Hedge Fund Holders: 16

Tilray Brands, Inc. (NASDAQ:TLRY) is involved in multiple aspects of the medical cannabis industry, including research, growing, manufacturing, advertising, and distributing its products globally, including in Canada, the US, Europe, Australia, New Zealand, Latin America and other countries. It operates through four divisions – the Cannabis division, the Distribution division, the Beverage Alcohol division, and the Wellness division. On January 12, Tilray Brands, Inc. (NASDAQ:TLRY) announced a rebranding of their cannabis wellness brand, Solei, and unveiled new product offerings, including Solei Slims and Solei CBN Softgels.

On January 10, MKM Partners analyst Bill Kirk maintained a Neutral rating on Tilray Brands, Inc. (NASDAQ:TLRY) and lowered the firm’s price target on the shares to $3 from $4. 

According to Insider Monkey’s data, Tilray Brands, Inc. (NASDAQ:TLRY) was part of 16 hedge fund portfolios at the end of the third quarter of 2022, compared to 14 in the prior quarter. D E Shaw is a significant position holder in the company, with 3.4 million shares worth $9.3 million. 

2. The Scotts Miracle-Gro Company (NYSE:SMG)

Number of Hedge Fund Holders: 29

The Scotts Miracle-Gro Company (NYSE:SMG) was founded in 1868 and is headquartered in Marysville, Ohio. The company is involved in the production, advertising, and distribution of lawn, garden, indoor gardening, and hydroponic gardening products in the United States and globally. Hawthorne Gardening Company, a subsidiary of The Scotts Miracle-Gro Company (NYSE:SMG), has acquired the leading companies in hydroponics, lighting, and other supplies needed for cultivation. Now, Scotts is increasing its involvement by supporting legalization efforts through lobbying and investing in ventures that could allow it to sell cannabis products directly to consumers in the future. The Scotts Miracle-Gro Company (NYSE:SMG) is one of the best marijuana stocks to monitor. 

On January 23, The Scotts Miracle-Gro Company (NYSE:SMG) declared a quarterly dividend of $0.66 per share, in line with previous. The dividend is payable on March 10, to shareholders of record on February 24. The forward yield was 4.11%. On February 1, the company reported market-beating FQ1 results, and it expects free cash flow of $1 billion over the next two years. 

According to Insider Monkey’s Q3 data, 29 hedge funds were bullish on The Scotts Miracle-Gro Company (NYSE:SMG), compared to 25 funds in the prior quarter. Jean-Marie Eveillard’s First Eagle Investment Management is the biggest stakeholder of the company, with 1.5 million shares worth $67.3 million. 

Madison Funds made the following comment about The Scotts Miracle-Gro Company (NYSE:SMG) in its Q4 2022 investor letter:

“Stock selection was the poorest for us in this sector. Two stocks in particular – Hain Celestial (HAIN) and The Scotts Miracle-Gro Company (NYSE:SMG) – while big winners for us in 2020 and 2021, hurt the portfolio in 2022.

While both companies were so-called COVID beneficiaries (businesses that benefited from consumers staying home and spending on their homes during COVID), we felt they possessed certain additional drivers that would maintain their fundamentals into 2022 and beyond.

Scott’s Miracle-Gro is arguably one of the great American franchises. The brand is synonymous with lawn care and pest control, has a dominant market share (~60%) with historically-impressive ~30% cash flow margins, and has the country’s largest Cannabis supply business. Scotts’ core business saw a significant windfall during COVID lockdowns. Lawn and garden care is not a growth business, and SMG dominance does not allow for much incremental gain in market share. However, our thesis was that even in a reopening scenario where lawn and garden businesses would revert to the mean, the cannabis market was poised for years of growth as more states legalized recreational use.

What we missed was the highly inefficient structure of the U.S. cannabis market. Currently, California, Colorado, and Michigan have the biggest and most mature markets. However, over the course of the last few years, several very large states and regions have voted to legalize recreational use, including New York, New Jersey, and Connecticut. The fly in the ointment has been Oklahoma, which is a medical marijuana state. Although recreational use is still prohibited, licenses to grow the crop were granted in Laissez Faire fashion to anyone willing to buy one. Oklahoma began to grow and cultivate the crop far in excess of their medical marijuana demand. That excess supply bled into gray markets across the country, devastating pricing for growers in other states. This glut put a near complete stop to capital spending on grow operations. With no new or incremental facilities coming on, Scotts’ Hawthorne business was cut in half from its peak in F21. This, of course, had a devastating effect on the stock.”

1. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)

Number of Hedge Fund Holders: 43

Jazz Pharmaceuticals plc (NASDAQ:JAZZ) was incorporated in 2003 and is headquartered in Dublin, Ireland. The biopharmaceutical company, through its industry-leading GW Cannabinoid Platform, is a leading expert in cannabinoid science and uses cannabis-based medicines to revolutionize treatment for diseases that are often overlooked and change the definition of living with such conditions. It is one of the best marijuana stocks to monitor. 

On December 8, Goldman Sachs analyst Madhu Kumar upgraded Jazz Pharmaceuticals plc (NASDAQ:JAZZ) to Buy from Neutral with a price target of $190, down from $192. The analyst cited his positive outlook on operating margin performance and the potential for multiple upside levers. 

According to Insider Monkey’s Q3 data, 43 hedge funds were bullish on Jazz Pharmaceuticals plc (NASDAQ:JAZZ), compared to 40 funds in the preceding quarter. Bernard Horn’s Polaris Capital Management is the leading stakeholder of the company, with 1.47 million shares worth $196 million. 

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 13 Best Value Dividend Stocks to Buy and 10 Hot Healthcare Stocks To Buy Now.