5 Best Weed Stocks to Buy Now

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

Number of Hedge Fund Holders: 29

Topping the list of the 10 best weed stocks to buy now is Ohio-based hydroponic supplier The Scotts Miracle-Gro Company (NYSE: SMG). Founded in 1868, the company sells garden and lawn products in its US consumer segment. The Scotts Miracle-Gro Company also operates a cannabis segment, namely Hawthorne. The Hawthorne division contains the essential tools that marijuana growers use to harvest their green gold. The company’s cannabis brands include General Hydroponics and soil and fertilizer specialist Vermicrop Organics. Hawthorne also offers growing services, including integrated lighting plans, airflow mapping, and vertical racking layouts. 

The company has a market cap of $13.5 billion. In the second quarter of 2021, the company’s sales increased 32% to $1.83 billion compared to $1.38 billion a year earlier. The Hawthorne division saw a 66 percent rise in sales to $363.8 million. In April, Raymond James analysts maintain its Strong Buy rating of The Scotts Miracle-Gro Company with a price target of $300. The stock gained 84% in the last twelve months.

There were 29 hedge funds that reported owning stakes in The Scotts Miracle-Gro Company (NYSE: SMG) at the end of the fourth quarter. The total value of these stakes at the end of Q4 is $455 million.

Roubaix Capital, in their Q4 2020 investor letter, said that The Scotts Miracle-Gro Company (NYSE: SMG). Here is what Roubaix Capital has to say about The Scotts Miracle-Gro Company in their letter:

“Companies including Scotts Miracle-Gro (SMG) have seen their sales accelerate to unsustainable levels that are not consistent with their mature end markets. We expect sales to slow and eventually give back some of the one-time gains caused by the unusual circumstances of 2020. Further, we question the sustainability of current peak valuations in the face of likely peak sales. We believe companies with such characteristics could face a combination of negative earnings revisions and lower valuations as the demand reality sets in this year. We also anticipate that companies that have benefited from consumers being homebound will see very challenging comparisons in 2021. No doubt, spending on home improvement and furnishing grew at unsustainable rates in 2020.”

You can also take a peek at 10 Best REIT Stocks To Buy Now and 30 Best Places to Visit in USA in June.

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