In this article, we will discuss the 5 best weed stocks to buy now. If you want to read our comprehensive analysis about the cannabis industry trends and outlook, go directly to the 10 Best Weed Stocks to Buy Now.
5. GrowGeneration Corp. (NASDAQ: GRWG)
Number of Hedge Fund Holders: 18
Colorado-based marijuana growing supplies retailer GrowGeneration Corp. (NASDAQ: GRWG) ranks 5th in our list of 10 best weed stocks to buy now. Formerly known as Easylife Corp., the company is the biggest hydroponics supplier in the US, with 53 retail stores across 12 states. The company is one of the fastest-growing weed stocks to buy now. It recently completed its sixth acquisition, as the GrowGeneration Corp. agreed to buy California-based 55 Hydroponics in mid-March.
The company has a market cap of $2.5 billion. In 2020, the company’s net revenue increased 142.5% to 193.4 million compared to $79.7 million in 2019. Shares of GRWG surged 825.8% over the past twelve months.
At the end of the fourth quarter of 2020, 18 hedge funds in the database of Insider Monkey held stakes of GrowGeneration Corp. (NASDAQ: GRWG), up from 10 in the previous quarter. The total value of these stakes at the end of Q4 is $142 million.
4. Canopy Growth Corporation (NASDAQ: CGC)
Number of Hedge Fund Holders: 19
Canadian cannabis grower Canopy Growth Corporation (NASDAQ: CGC) ranks 4th on the list of the best weed stocks to buy now. Formerly known as Tweed Marijuana Inc., the company is a global leader in diversified cannabis and cannabinoid-based consumer products. The company’s weed offerings are dried flower, oil, soft gel capsule, infused drink, edible, and topical formats. The company’s medical cannabis brand Spectrum Therapeutics commercializes full-spectrum products in Germany and Canada. Canopy holds approximately 10.1% of Canada’s cannabis market.
The company has a market cap of $9.7 billion. The company reported net revenue of $124 million in the third quarter of 2021. Shares of CGC increased 65% over the past twelve months.
At the end of the fourth quarter of 2020, 19 hedge funds in the database of Insider Monkey held stakes of Canopy Growth Corporation (NASDAQ: CGC), up from 9 in the previous quarter. The total value of these stakes at the end of Q4 is $133 million.
3. Innovative Industrial Properties, Inc. (NYSE: IIPR)
Number of Hedge Fund Holders: 23
San Diego-based real estate investment trust (REIT) Innovative Industrial Properties, Inc. (NYSE: IIPR) ranks 3rd in our list of 10 best weed stocks to buy now. Innovative Industrial Properties, Inc. is not a weed producer. We included it in our list because it leases to the fastest-growing cannabis growers in the US, including Cresco Labs Inc. (OTC: CRLBF) and Cresco Labs Inc. (OTC: CURLF). The REIT buys properties and rents them back to marijuana growers. The company owned 69 properties in the United States that were 100% leased to state-licensed medical-use cannabis operators as of April 19th, 2021, totaling approximately 6.2 million rentable square feet.
The company has a market cap of $4 billion and a revenue of $116.9 million in 2020, up 161.7% year over year. Shares of IIPR surged 128% over the past twelve months.
At the end of the fourth quarter of 2020, 23 hedge funds in the database of Insider Monkey held stakes of Innovative Industrial Properties, Inc. (NYSE: IIPR), up from 20 in the previous quarter. The total value of these stakes at the end of Q4 is $318 million.
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2. Jazz Pharmaceuticals plc (NASDAQ: JAZZ)
Number of Hedge Fund Holders: 29
Irish biopharmaceutical firm Jazz Pharmaceuticals plc (NASDAQ: JAZZ) ranks 2nd in our list of 10 best weed stocks to buy now. The company’s primary focus is the development and commercialization of pharmaceutical products in the fields of narcolepsy, oncology, pain management, and psychiatry. On May 5th, Jazz Pharmaceuticals plc completed its $7.6 billion acquisition of the UK-based biopharmaceutical company GW Pharmaceuticals plc (NASDAQ: GWPH), the drug company that produces and commercializes cannabinoid prescription medicines used to treat neuropathic pain, cancer pain, and multiple sclerosis. Jazz Pharmaceuticals plc is particularly interested in GW’s Epidiolex, a cannabis-based medicine that treats rare types of childhood epilepsy. The drug has over %510 million in sales in 2020.
The company has a market cap of $9.7 billion. The company’s revenue in the first quarter came in at $607 million, up from $524 million in the same period in 2020. Shares of JAZZ climbed 50.7% over the past twelve months. Analysts from investment banking firm Stifel Nicolaus maintained a Buy rating on Jazz Pharmaceuticals plc in April, with a price target of $202.
At the end of the fourth quarter of 2020, 29 hedge funds in the database of Insider Monkey held stakes of Jazz Pharmaceuticals plc (NASDAQ: JAZZ), up from 28 in the previous quarter. The total value of these stakes at the end of Q4 is $1.34 billion.
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.
