In this article, we will be looking at the 5 best hemp stocks to buy now. If you want to see our detailed analysis of these stocks, go directly to the 11 Best Hemp Stocks To Buy Now.
5. Turning Point Brands, Inc. (NYSE:TPB)
Number of Hedge Fund Holders: 30
Turning Point Brands, Inc. (NYSE: TPB) is a leading manufacturer, marketer and distributor of branded consumer products including alternative smoking accessories and hemp-based products. Founded in 2004, the company is ranked fifth on the list of the 11 best hemp stocks to buy now.
On October 27, Craig-Hallum analyst Eric Des Lauriers maintained a Buy rating on Turning Point Brands, Inc. (NYSE:TPB) alongside a $65 price target on its shares.
Of the 873 elite funds tracked by Insider Monkey, 30 were long Turning Point Brands, Inc. (NYSE:TPB) at the end of June, up from 25 in the first quarter of 2021. DG Capital Management is the leading stakeholder of the company.
In the Q2 2021 investor letter of Kinsman Oak Capital Partners, the fund mentioned Turning Point Brands, Inc. (NYSE:TPB). Here is what the fund said:
“TPB continues to be a volatile stock, but business execution has been admirable since we first initiated our position. The company has put forth consecutive beat and raise quarters, announced a few tuck-in acquisitions, and recently promoted a new CFO. We view these developments as positives for the stock. We believe TPB remains undervalued at ~14x FY22 EPS and ~10x FY22 EBITDA.”
4. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Number of Hedge Fund Holders: 34
Ireland-based Jazz Pharmaceuticals plc (NASDAQ:JAZZ) ranks fourth on our list of the 11 best hemp stocks to buy now. The company operates as a specialty cannabis and hemp-based biopharmaceutical company. In May, the company acquired GW Pharmaceuticals (NASDAQ:GWPH) for $7.6 billion.
On October 6, Jefferies analyst Akash Tewari assumed coverage of Jazz Pharmaceuticals plc (NASDAQ:JAZZ) with a Buy rating and $172 price target on the company’s shares.
In the second quarter of 2021, Jazz Pharmaceuticals plc (NASDAQ: JAZZ) had an EPS of $3.90, beating estimates by $0.45. The company’s second quarter revenue came in at $751.81 million, surpassing predictions by $14.51 million.
At the end of the second quarter of 2021, 34 hedge funds in the database of Insider Monkey held stakes worth $1.49 billion in Jazz Pharmaceuticals plc (NASDAQ: JAZZ). This is compared to 37 in the preceding quarter worth $1.26 billion.
Out of the hedge funds being tracked by Insider Monkey, investment firm Audrey Capital Management is a leading shareholder in Jazz Pharmaceuticals plc (NASDAQ:JAZZ), with 2,805 shares worth more than $498 million.
3. Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)
Number of Hedge Fund Holders: 34
Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) is a biotech company that is involved in the manufacture of cannabis and hemp oil products. Ranked third on our list of the 11 best hemp stocks to buy now, Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) has a market capitalization of $3.89 billion.
Earlier this August, Cantor Fitzgerald analyst Alethia Young kept a price target of $93 on Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) alongside an Overweight rating on the shares of the company.
After the FDA issued a black box warning of JAK inhibitors earlier this September, Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)’s share price has rallied sharply. The growth is largely attributed to its oral selective S1P receptor modulator called, known as Etrasimod.
By the end of the second quarter of 2021, 34 hedge funds out of the 873 tracked by Insider Monkey held stakes in Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) worth about $756.6 million. This is compared to 33 hedge fund holders in the preceding quarter, holding stakes worth roughly $822.5 million. The firm reported an EPS of -$2.40 for the same quarter.
Out of the hedge funds being tracked by Insider Monkey, Kurt Emster’s VenBio Select Advisor is a leading shareholder of Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), with over 4 million shares worth more than $277.9 million.
2. Philip Morris International, Inc. (NYSE:PM)
Number of Hedge Fund Holders: 46
Philip Morris International, Inc. (NYSE:PM) is a multinational tobacco and hemp product manufacturing company based in New York. The most famous of the company’s products include Marlboro cigarettes. The Swiss-American company comes in at second on our list of the 11 best hemp stocks to buy now.
Terry Smith of Fundsmith LLP is one of the biggest stakeholders of Philip Morris International, Inc. (NYSE:PM) as of the end of the second quarter, according to the data tracked by Insider Monkey. Overall, 46 funds were bullish on the company by the end of the June quarter, compared to 48 in the previous quarter.
Earlier on August 19, Deutsche Bank analyst Gerry Gallagher raised his price target on Philip Morris International, Inc. (NYSE:PM) to $120 from $114, and kept a Buy rating on the shares.
1. Altria Group, Inc. (NYSE:MO)
Number of Hedge Fund Holders: 47
Altria Group, Inc. (NYSE:MO) is one of the world’s largest producers and marketers of tobacco, cigarettes, and more recently due to a strategic investment in Cronos Group (NASDAQ:CRON), cannabis and hemp-related products.
On September 30, Bank of America analyst Lisa Lewandowski maintained Buy ratings on Altria Group, Inc. (NASDAQ:MO), despite setbacks due to the ban of IQOS tobacco sticks.
By the end of the second quarter of 2021, 47 hedge funds out of the 873 tracked by Insider Monkey held stakes in Altria Group, Inc. (NYSE: MO) worth roughly $948 million. This is compared to 38 hedge funds in the previous quarter with a total stake value of approximately $1.1 billion.
Out of the hedge funds being tracked by Insider Monkey, Chicago-based Harris Associates is a leading shareholder in Altria Group, Inc. (NYS:MO), with over 5.1 million shares worth more than $243.3 million.
In the Q2 2021 investor letter of Broyhill Asset Management, the fund mentioned Altria Group, Inc. (NYSE:MO). Here is what the fund had to say:
“Altria (MO) shook off the prospects of a ban on menthol and a potential cap on nicotine and gained 20%. We shared our thoughts on these regulations during the quarter, which are available here.
MO Valuation. MO is up ~ 18% YTD (even accounting for the recent sell-off). We expect MO to generate close to $5 in annual FCF per share over the next few years, putting the stock at ~ 10x, which is less than half the market’s multiple today. Over the last decade, shares have traded at an average multiple of 15x and within a range of ~ 10x – 20x (+/-1 standard deviation). The stock yields 7.2% at the current price, close to a 6% premium to treasuries. Historically, shares have traded closer to a 3% premium to the 10Y, which would imply a ~ $75 share price.”
See also 10 Best Healthcare Dividend Stocks and 12 Best Telemedicine Stocks To Buy.
