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11 Best Hemp Stocks To Buy Now

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·8 min read
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  • SNDL
  • TLRY
  • PM
  • MO
  • ARNA
  • ACB
  • IIPR

In this article, we will be looking at the 11 best hemp stocks to buy now. If you want to skip our comprehensive analysis of these stocks, you can go directly to the 5 Best Hemp Stocks To Buy Now.

With the growing acceptance of cannabis among American and global consumers leading to an increase in sales and legalization after the 2018 Farm Bill, the industrial hemp market has experienced vast growth, as analysts and investors brought their attention to hemp stocks. Often confused for marijuana, on account of both plants containing tetrahydrocannabinol (THC) and being classified as cannabis, hemp yields lower amounts of the psychoactive compound compared to the likes of marijuana, thus having negligible effect. As such, the plant is not known as a recreational drug, but rather as a sustainable and profitable crop due to its many medical, structural and dietary uses.

The hemp industry is booming, as government and private grants provide significant funding towards the research and applications of the crop. The U.S Department of Agriculture's $10 million grant this year was among the most notable. The COVID-19 pandemic affected many industries due to repeated lockdowns. However, the hemp industry was among the few that managed to stay afloat despite the economic recession. According to a report, the global industrial hemp market attained a value of approximately $4.7 billion back in 2020. Aided by the introduction of favorable regulations, largely in the United States due to the Democratic government, the market is projected to further grow at a CAGR of 22.5% between 2021 and 2026 to reach a value of $14.6 billion by 2026. Additionally, sales of hemp-based products are expected to reach $2.61 billion by 2022, based on data provided by Statista.

The above serves to prove that the hemp industry is set to become a highly lucrative investment opportunity, with companies like Altria Group, Inc. (NYSE:MO), Philip Morris International Inc. (NYSE:PM), and Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) ready to rake in the benefits due to this development.

Our Methodology

Let us now analyze our list of the 11 best hemp stocks to buy now. For our list, we chose stocks based on positive analysts’ ratings and their performance in the hemp industry, ranking them according to the number of hedge funds that held stakes in the company.

Why should we pay attention to hedge fund sentiment while choosing stocks? Insider Monkey’s research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 86 percentage points since March 2017. Between March 2017 and July 2021, our monthly newsletter’s stock picks returned 186.1%, vs. 100.1% for the S&P 500 ETF (SPY). Our stock picks outperformed the market by more than 86 percentage points (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to. You can subscribe to our free newsletter on our homepage to receive our stories in your inbox.

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11 Best Hemp Stocks To Buy Now

11. Aurora Cannabis Inc. (NASDAQ:ACB)

Number of Hedge Fund Holders: 9

Aurora Cannabis Inc. (NASDAQ:ACB) starts off our list of the 11 best hemp stocks to buy now. A Canadian distributor of a variety of cannabis-based products, the company is headquartered in Edmonton and has operations in over 25 countries.

On September 29, Aurora Cannabis Inc. (NASDAQ:ACB) launched its Bidiol product, the first medical cannabis oil in Uruguay that is wholly produced domestically. The company's strategy in Uruguay focuses exclusively on medical cannabis, with the aim of making the country its continental center of production and distribution. Its operations in Uruguay includes one of the only GMP certified cannabis processing facilities in the country.

At the end of the second quarter of 2021, 9 hedge funds in the database of Insider Monkey held stakes worth $62 million in Aurora Cannabis Inc. (NASDAQ:ACB), down from 12 the preceding quarter worth $48 million. Ken Griffin of Citadel Investment Group is a leading stakeholder in the company, with 988,342 shares worth $8.9 million.

10. Sundial Growers Inc. (NASDAQ:SNDL)

Number of Hedge Fund Holders: 10

Sundial Growers Inc. (NASDAQ: SNDL) is a company engaged in the production and distribution of cannabis and hemp products.

By the end of the second quarter of 2021, 10 hedge funds out of the 873 tracked by Insider Monkey held stakes in Sundial Growers Inc. (NASDAQ:SNDL) worth roughly $76.5 million. This is compared to 7 hedge fund holders in the previous quarter with stakes worth roughly $1.88 million.

Out of the hedge funds being tracked by Insider Monkey, Jim Simons' Renaissance Technologies is a leading shareholder of Sundial Growers Inc. (NASDAQ:SNDL), with over 70.9 million shares worth more than $67.3 million.

ATB Capital analyst David Kideckel remains bullish on Sundial Growers Inc. (NASDAQ:SNDL), upgrading it to Sector Perform from Underperform, with a price target of $0.8, up from $0.5.

In addition to Altria Group, Inc. (NYSE: MO), Philip Morris International Inc. (NYSE:PM), and Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), Sundial Growers Inc. (NASDAQ:SNDL) is a notable stock to buy.

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

Number of Hedge Fund Holders: 15

Innovative Industrial Properties, Inc. (NYSE:IIPR) is a California-based company focused on the acquisition, ownership and management of industrial properties for their regulated cannabis and hemp facilities. The firm ranks ninth on our list of the 11 best hemp stocks to buy now.

On September 1, BTIG analyst Thomas Catherwood raised the price target on Innovative Industrial Properties, Inc. (NYSE:IIPR) to $290 from $245, and kept a Buy rating on the shares of the company.

As of the end of the second quarter, 15 hedge funds tracked by Insider Monkey reported owning stakes in Innovative Industrial Properties, Inc. (NYSE:IIPR). The total worth of these stakes is $200.8 million. This shows the hedge fund sentiment is positive for the company as 13 funds held stakes in the previous quarter, having a total worth of $192.6 million. Stuart Zimmer of Zimmer Partners is a leading shareholder in the company.

8. Canopy Growth Corporation (NASDAQ:CGC)

Number of Hedge Fund Holders: 16

Canopy Growth Corporation (NASDAQ:CGC) is an Ontario-based company engaged in the production and distribution of cannabis and hemp-based products for recreational and medical uses in Canada, the United States, and Germany. The company ranks eighth on our list of the 11 best hemp stocks to buy now.

Shares of the Canadian company rose on October 14, after it announced an agreement to buy Wana Brands, a company specializing in edibles. In the fiscal first quarter of 2022, Canopy Growth Corporation (NASDAQ:CGC) had an EPS of $0.96, beating estimates by $1.19.

Earlier this September, CIBC analyst John Zamparo kept a Neutral rating on Canopy Growth Corporation (NASDAQ:CGC), alongside a $17.78 price target on its shares.

Of the 873 elite funds tracked by Insider Monkey, 16 were long in Canopy Growth Corporation (NASDAQ:CGC) at the end of June, up from 12 in the first quarter of 2021. Stephen Mildenhall of Contrarius Investment Management is the leading stakeholder of the company.

Besides Altria Group, Inc. (NYSE: MO), Philip Morris International Inc. (NYSE:PM), and Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), Sundial Growers Inc. (NASDAQ:SNDL) is a stock that hedge funds are interested in.

7. Tilray, Inc. (NASDAQ:TLRY)

Number of Hedge Fund Holders: 17

Tilray, Inc. (NASDAQ: TLRY) is a pharmaceutical company involved in the cannabis and industrial hemp markets. With operations in both the United States and Canada the company ranks seventh on our list of the 11 best hemp stocks to buy now. The firm's stock has gained 16% on a year to date basis.

On August 18, BMO Capital analyst Tamy Chen kept a Market Perform rating, as well as a price target of $14 on Tilray, Inc. (NASDAQ:TLRY) shares.

On October 26, Tilray, Inc. (NASDAQ:TLRY) was selected by the Luxembourg Ministry of Health as a supplier of Good Manufacturing Practice (GMP) certified medical cannabis products for the country’s medical cannabis program.

By the end of the second quarter of 2021, 17 hedge funds out of the 873 tracked by Insider Monkey held stakes in Tilray, Inc. (NASDAQ:TLRY), worth about $94.8 million. This is compared to 21 hedge fund holders in the preceding quarter.

Out of the hedge funds being tracked by Insider Monkey, Israel Englander's Millennium Management is among the leading shareholders of the company, with 815,064 shares worth more than $14.7 million.

Much like Altria Group, Inc. (NYSE: MO), Philip Morris International Inc. (NYSE:PM), and Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), Tilray, Inc. (NASDAQ:TLRY) is a notable stock to buy.

6. GrowGeneration Corp. (NASDAQ:GRWG)

Number of Hedge Fund Holders: 17

GrowGeneration Corp. (NASDAQ:GRWG) owns and operates specialty retail hydroponic and organic gardening stores, with products including horticultural, hydroponic and organic items among others. Ranked sixth on our list of the 11 best hemp stocks to buy, GrowGeneraton Corp. (NASDAQ:GRWG) has a market capitalization of $1.31 billion.

On September 27, Lake Street analyst Mark Smith reiterated a Buy rating on GrowGeneration Corp. (NASDAQ:GRWG), alongside a $63 price target on the company's shares.

As of the end of the second quarter, 17 hedge funds tracked by Insider Monkey reported owning stakes in GrowGeneration Corp. (NASDAQ:GRWG). The total worth of these stakes amounts to $128.6 million. This is compared to 18 funds that had stakes in the company in the previous quarter, with a total worth of $127 million. Richard Dreihaus of Dreihaus Capital is the leading shareholder in the company.

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Disclosure: None. 11 Best Hemp Stocks To Buy Now is originally published on Insider Monkey.