5 Best Cannabis Stocks To Buy Now

4. Canopy Growth Corporation (NYSE:CGC)

Number of Hedge Fund Shareholders: 13

Canopy Growth Corporation (NYSE:CGC) is yet another cannabis stock whose shares have crashed in recent years, falling by 90% since early February 2021. Hedge funds have moderately increased their bets on the stock since then in the hopes of buying low into a future rally. In Q3, Stephen Mildenhall’s Contrarius Investment Management was one of those funds, adding a stake of 19.7 million CGC shares to its 13F portfolio.

Canopy Growth Corporation (NYSE:CGC) shares rallied in the fourth quarter of 2020 and January 2021, gaining over 200% during the four-month period following the launch of the company’s U.S. website. Those days are like a distant memory now, as shares have cratered by 93% since, owing heavily to weak demand in Canada, which among other things, forced the company to write down $87 million of cannabis inventory during Q3 2021.

Like fellow Canadian grower Aurora Cannabis, Canopy Growth Corporation (NYSE:CGC) has been focused on cost-cutting initiatives in recent quarters. The company’s adjusted core loss in Q3 was CAD78.1 million ($56.9 million), less than half what it lost a year earlier. The company’s BioSteel line of non-cannabis sports drinks has helped offset the weakness in the Canadian cannabis market, while the company continues to prep for its entry into the more promising U.S. market.