In this article, we discuss 5 best cannabis stocks to buy now. If you want to see more stocks in this selection, check out 11 Best Cannabis Stocks To Buy Now.
5. Innovative Industrial Properties, Inc. (NYSE:IIPR)
Number of Hedge Fund Holders: 16
Innovative Industrial Properties, Inc. (NYSE:IIPR) concentrates on the acquisition, ownership, and management of specialized properties, which are subsequently leased to seasoned operators possessing state licenses for their regulated medical-use cannabis facilities. The company’s primary focus lies in offering real estate solutions tailored for the cannabis industry.
In the latest quarter ending on September 30, Innovative Industrial Properties, Inc. (NYSE:IIPR) maintained its strong performance, reporting a net income of $41.3 million on revenues of $77.8 million. Both of these crucial indicators exhibited a roughly 10% year-over-year increase and showed sequential growth from the previous quarter, Q2, during which IIP recorded a $40.9 million profit on $76.5 million in revenue. For the year 2023 thus far, Innovative Industrial Properties, Inc. (NYSE:IIPR) has generated $228.7 million in revenue and achieved a net income of $122.9 million.
According to Insider Monkey’s first quarter database, 16 hedge funds were long Innovative Industrial Properties, Inc. (NYSE:IIPR), the same as the prior quarter. Stuart J. Zimmer’s Zimmer Partners is the largest stakeholder of the company, worth $86.52 million.
4. Tilray Brands, Inc. (NASDAQ:TLRY)
Number of Hedge Fund Holders: 17
Tilray Brands, Inc. (NASDAQ:TLRY) is as an American pharmaceutical, cannabis-lifestyle, and consumer packaged goods company. It is incorporated in the United States and headquartered in New York City. Tilray has a multinational presence with operations in Canada, Australia, New Zealand, and Latin America. The company also operates growing facilities in Germany and Portugal.
In its first-quarter results released in October, Tilray Brands, Inc. (NASDAQ:TLRY) disclosed record revenues of $177 million and emphasized that, despite recent portfolio diversification, cannabis remained a core focus. The Canadian cannabis giant reported a 15% year-on-year and 9% sequential growth in net revenues, attributing this success to a robust performance in its cannabis division. Specifically, net cannabis revenues experienced a 20% increase, reaching $70 million for the three months ending on August 31, 2023. This growth propelled Tilray Brands, Inc. (NASDAQ:TLRY) to hold a 13.4% share of the Canadian recreational cannabis market, establishing itself as the market leader. Additionally, the company’s alcoholic beverage arm, expanded significantly over the past year, also demonstrated a 17% year-on-year revenue increase, reaching $24 million.
According to Insider Monkey’s third quarter database, 17 hedge funds were long Tilray Brands (NASDAQ:TLRY), compared to 15 funds in the earlier quarter. Hudson Bay Capital Management is a prominent stakeholder of the company.
3. The Scotts Miracle-Gro Company (NYSE:SMG)
Number of Hedge Fund Holders: 17
The Scotts Miracle-Gro Company (NYSE:SMG) is involved in the production, promotion, and distribution of products related to lawn and garden care, as well as indoor and hydroponic gardening. The company has applied its expertise in horticulture and gardening to develop innovative technologies and solutions specifically tailored for cannabis cultivation. This includes the creation of advanced lighting systems, hydroponic equipment, and other tools aimed at optimizing growing conditions and enhancing crop yields. In early November, The Scotts Miracle-Gro Company (NYSE:SMG) made an announcement indicating that it was actively engaged in discussions regarding the creation of a vertically integrated cannabis company. This strategic move was part of the company’s exploration of various alternatives for Hawthorne Gardening Company, its subsidiary specializing in products for cannabis cultivation.
According to Insider Monkey’s first quarter database, 17 hedge funds were bullish on The Scotts Miracle-Gro Company (NYSE:SMG), compared to 28 funds in the prior quarter. Paul Marshall And Ian Wace’s Marshall Wace LLP is a prominent stakeholder of the company, with 445,167 shares worth $23 million.
2. Bausch Health Companies Inc. (NYSE:BHC)
Number of Hedge Fund Holders: 31
Bausch Health Companies Inc. (NYSE:BHC) is a Canadian multinational specialty pharmaceutical company headquartered in Laval, Quebec, Canada. It was previously known as Valeant Pharmaceuticals International, Inc. The company is known for selling Cesamet, a synthetic form of cannabis utilized in the treatment of nausea and vomiting in chemotherapy patients. In addition to Cesamet, Bausch Health Companies Inc. (NYSE:BHC) has a diverse product portfolio, encompassing generic pharmaceuticals, medical devices, and over-the-counter products like eye drops. The company’s diversified applications of cannabis position it favorably to potentially benefit as the cannabis industry continues to expand and evolve.
Insider Monkey’s Q3 2023 survey covering 910 hedge funds revealed that 31 were Bausch Health Companies Inc. (NYSE:BHC)’s shareholders. John Paulson’s Paulson & Co is the biggest investor among these since it has invested $217.3 million in the pharma company.
1. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)
Number of Hedge Fund Holders: 40
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is a biopharmaceutical company committed to advancing research, development, and worldwide distribution of pharmaceutical products and immunotherapies to meet unaddressed medical needs. Leveraging its GW Cannabinoid Platform, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is a key player in the realm of cannabinoid science.
Jazz Pharmaceuticals plc (NASDAQ:JAZZ) unveiled its financial performance for the third quarter of 2023 on November 8, demonstrating strong results with total revenues hitting $972 million. Notably, the company’s primary growth catalysts—Xywav, Epidiolex, and Rylaze—experienced a collective revenue surge, marking a noteworthy 24% increase year-over-year.
According to Insider Monkey’s third quarter database, 40 hedge funds were bullish on Jazz Pharmaceuticals plc (NASDAQ:JAZZ), down from 44 funds in the last quarter. Robert Pohly’s Samlyn Capital held the largest position in the company, with 1.35 million shares worth $175.88 million.
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