8 Most Undervalued Pot Stocks to Buy According to Analysts

2. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)

Stock Upside Potential: 45.63%

Forward Price to Earnings Ratio (P/E): 6.64

Number of Hedge Fund Holders as of Q3 2024: 40

Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is a biopharmaceutical company that identifies, develops, and commercializes pharmaceutical products for unmet medical needs. While it focuses on oncology and neuroscience, the company also operates in the cannabis sector following the $7.2 billion acquisition of GW Pharmaceuticals.

Jazz Pharmaceuticals plc (NASDAQ:JAZZ) has a drug called Epidiolex, which is approved to treat childhood epilepsy. This drug has also shown promise in helping with mood, cognitive issues, and pain in people with Gulf War Illness. Epidiolex is notable because it was the first cannabis-derived medicine to get approval in the US and is also available in the UK. It plays a significant role in generating revenue for the cannabis sector.

In the third quarter of 2024, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) reported that their sales of cannabis-based drugs increased by 18% compared to the same period last year, reaching $251.6 million. This growth in cannabis drug sales is a major factor driving the company’s overall success. Continued Epidiolex’s strong performance is one reason management maintained a total revenue guidance of $4.0 to $4.1 billion for 2024 for the full year.