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.”
4. Cara Therapeutics, Inc. (NASDAQ: CARA)
Number of Hedge Fund Holders: 17
Cara Therapeutics, Inc. (NASDAQ: CARA) ranks 4th on the list of 10 best CBD stocks to invest in. The biotech company based in Connecticut created an orally induced cannabinoid-based medicine to treat inflammatory and neuropathic pain.
On April 29, Needham analysts maintained a Buy rating on Cara Therapeutics, Inc. (NASDAQ: CARA) with a price target of $26 per share. The company has a market cap of $604 million. In the first quarter of 2021, Cara Therapeutics, Inc. (NASDAQ: CARA) had an EPS of -$0.47, beating estimates by $0.12. The company’s first-quarter revenue came in at $1.94 million.
At the end of the first quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $153 million in Cara Therapeutics, Inc. (NASDAQ: CARA), up from 15 in the preceding quarter worth $97.6 million.
3. GrowGeneration Corp. (NASDAQ: GRWG)
Number of Hedge Fund Holders: 18
GrowGeneration Corp. (NASDAQ: GRWG) ranks 3rd on the list of 10 best CBD stocks to invest in. The company owns 57 retail hydroponic and organic garden stores across 12 states in the US. GrowGeneration Corp. (NASDAQ: GRWG) also operates an e-commerce business where the company markets advanced lighting technology, hydroponic equipment, and soil and nutrients to cultivators, both commercial and home growers.
On July 20, Lake Street analyst Mark Smith maintained a Buy rating on GrowGeneration Corp. (NASDAQ: GRWG) with a price target of $77 per share after the company announced the acquisition of Oregon-based hydroponic garden center Aqua Serene. Following the announcement, the company finalized the $4 million purchase of a California-based hydroponic garden center, Mendocino Greenhouse and Garden Supply. Shares of GrowGeneration Corp. (NASDAQ: GRWG) climbed 5% in the previous month.
The company has a market cap of $2.4 billion. In the first quarter of 2021, GrowGeneration Corp. (NASDAQ: GRWG) had an EPS of $0.10, beating estimates by $0.03. The company’s first-quarter revenue came in at $90.02 million, beating estimates by $3.66 million. The stock has gained 435% in the last twelve months.
At the end of the first quarter of 2021, 18 hedge funds in the database of Insider Monkey held stakes worth $127 million in GrowGeneration Corp. (NASDAQ: GRWG).
2. Tilray, Inc. (NASDAQ: TLRY)
Number of Hedge Fund Holders: 21
Tilray, Inc. (NASDAQ: TLRY) ranks 2nd on the 10 best CBD stocks to invest in. The Canadian pharmaceutical company develops and markets medical marijuana and cannabinoids. The company has established North America, Latin America, New Zealand, Europe, and Australia.
On July 27, Cantor Fitzgerald analyst Pablo Zuanic maintained an Overweight rating on Tilray, Inc. (NASDAQ: TLRY) and a price target of $19 per share. In May, Jefferies analyst Owen Bennett upgraded Tilray, Inc. (NASDAQ: TLRY) to a Buy rating and increased the firm’s price target to $23 per share. Following its merger with Ontario-based medical marijuana producer Aphria Inc., the marijuana firm is now among the most significant leaders in the Canadian industry, according to the analyst. It also has potential in the US market. Shares of Tilray, Inc. (NASDAQ: TLRY) increased 66% year to date.
The company has a market cap of $6.1 billion. In the first quarter of 2021, Tilray, Inc. (NASDAQ: TLRY) had an EPS of -$1.75, missing estimates by $1.67. The company’s revenue in 2020 increased by 26% year over year to $210.5 million, owing to a 153% increase in international medical marijuana sales.
At the end of the first quarter of 2021, 21 hedge funds in the database of Insider Monkey held stakes worth $257 million in Tilray, Inc. (NASDAQ: TLRY), up from 17 in the previous quarter worth $47 million.
1. Jazz Pharmaceuticals plc (NASDAQ: JAZZ)
Number of Hedge Fund Holders: 37
Topping the list of the 10 best CBD stocks to buy now is Irish biopharmaceutical firm Jazz Pharmaceuticals plc (NASDAQ: JAZZ). In May, the company acquired Epidiolex manufacturer GW Pharmaceuticals (NASDAQ: GWPH), which produces cannabinoid medication for cancer and neuropathic pain for approximately $7.6 billion.
RBC Capital analyst Daniel Busby maintained an Outperform rating on Jazz Pharmaceuticals plc (NASDAQ: JAZZ) on July 23, increasing the price target to $216 per share from $190 previously, citing the FDA-approved Rylaze for acute lymphoblastic leukemia and lymphoblastic lymphoma treatment as a potential growth driver for the company.
The company has a market cap of $10.6 billion. In the first quarter of 2021, Jazz Pharmaceuticals plc (NASDAQ: JAZZ) had an EPS of $3.92, beating estimates by $0.21. The company’s first-quarter revenue was $607 million, up from $524 million in the same quarter last year. Shares of Jazz Pharmaceuticals plc (NASDAQ: JAZZ) increased 6% in the previous three months and gained 52% in the previous year.
At the end of the first quarter of 2021, 37 hedge funds in the database of Insider Monkey held stakes worth $1.26 billion in Jazz Pharmaceuticals plc (NASDAQ: JAZZ), up from 17 in the preceding quarter worth $29,000.
You can also take a peek at the 15 Best Value Stocks to Invest In and 10 Most Valuable Companies in Europe.
