5 Best CBD Stocks to Invest In

In this article, we will be looking at the 5 best CBD stocks to invest in. If you want to see our detailed analysis and outlook of the cannabidiol industry, go directly to the 10 Best CBD Stocks to Invest In.

5. Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM)

Number of Hedge Fund Holders: 14

Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM) ranks 5th on the list of 10 best CBD stocks to invest in. The Pennsylvania-based firm sells agricultural products used in controlled environments throughout the United States and Canada. 

UBS analyst Peter Grom started coverage on Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM) with a Buy rating on July 23, with a price target of $66 per share, stating that the company poises a conservative near-term outlook owing to global inflation but would be more bullish after 2021. Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM) is expected to expand its revenue by 34% annually between 2020 and 2023, according to UBS.

Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM) went on an acquisition spree in the last three months, acquiring plant nutrient producer House & Garden for $125 million and nutrient manufacturer Heavy 16 for $78.1 million May. In June, the company announced to purchase organic hydroponic products supplier Aurora Innovations for $161 million.

The company has a market cap of $1.97 billion. In the first quarter of 2021, Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM) had an EPS of $0.19, beating estimates by $0.10. The company’s first-quarter revenue came in at $111.4 million, beating estimates by $2.62 million. 

At the end of the first quarter of 2021, 14 hedge funds in the database of Insider Monkey held stakes worth $84 million in Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM), down from 19 in the preceding quarter worth $117 million. 

In its Q1 2021 investor letter, Madison Small Cap Fund mentioned Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM) and shared their insights on the company. Here is what the fund said: 

“We also initiated a position in Hydrofarm in the first quarter. Hydrofarm distributes lighting, nutrients, and grow media for controlled environment agriculture, specifically for the cultivation of cannabis and related products. Hydrofarm’s customers are fragmented. There are over 1,500 hydroponic retailers in the U.S. and Canada. The runway for revenue growth is large as more and more states legalize the recreational and medical use of cannabis. Today about 60% of the population does not have access to recreational use cannabis which represents a massive growth opportunity.”