Below we presented the list of 5 Best Hemp Stocks to Buy Now. For our detailed discussion and a more comprehensive list please see 13 Best Hemp Stocks to Buy Now.
At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. We go through lists like the 10 best hydrogen fuel cell stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind let’s take a look at the best hemp stocks to buy:
5. Turning Point Brands, Inc. (NYSE:TPB)
No of HFs: 24
Total Value of HF Holdings: $98.0 Million
TPB is the 5th best hemp stock to buy now. The top hedge fund holder of this stock is Ken Griffin’s Citadel Investment Group which had over $20 million invested in the stock at the end of September. An insider recently purchased 1,500 shares at around $22 in May 2020. The stock is up 140% since then. Maran Capital Management LLC mentioned the stock in its 4Q 2020 investor letter:
“Turning Point Brands, a branded consumer products company executing a buy and build strategy, has been a holding of the partnership on and off for the past four years. TPB is focused on “active ingredients,” such as nicotine (including tobacco-based and non-tobacco variants, but not cigarettes), caffeine, CBD, and more. Their Zig Zag brand dates back over 150 years and is the top-selling rolling paper brand globally. I don’t believe we are paying anything for the option, but if cannabis is legalized at the federal level in the US, Zig Zag could see a step-change in its growth. I love these types of situations. I’ve underwritten TPB based on its “boring” legacy businesses, but there is a lot of upside in its “new gen” segment (vaping, CBD, other active ingredients), as well as the potential for a real acceleration in Zig Zag’s growth under various scenarios.
A few months ago, I had the pleasure of interviewing Larry Wexler and Bobby Lavan, the CEO and CFO of Turning Point Brands, respectively, at the Casulo Buyside Fireside, hosted by Shai Dardashti. We discussed why they are so excited about the opportunities ahead at TPB, the significant optionality embedded in the company, the fact that the company was one of the few to increase its share buyback authorization last March (and act on it), how management targets a 17.5%+ ROIC on all capital allocation decisions, and the growth prospects across all three of the company’s major portfolio segments.”
Copyright: nilswey / 123RF Stock Photo
4. Scott Miracle (NYSE:SMG)
No of HFs: 31
Total Value of HF Holdings: $292 Million
SMG was mentioned in the 25 Biggest Marijuana Companies in the World. The company is known for its branded consumer lawn and gardening products. Recently, the company announced the realignment of Finance, Supply Chain, and Corporate Affairs Teams. Dave Swihart had expanded the role of leading global technology and operations. Mike Lukemire, president and chief operating officer commented:
“Under Dave’s leadership, we have dramatically improved our innovation processes and have benefitted from a series of the most successful product launches in our history. As we continue to advance our supply chain to meet the rapidly evolving needs of the market, including the expansion of our direct-to-consumer efforts, he is the right person to also oversee this effort. Dave’s expanded role provides me more flexibility to work with Jim and our Board of Directors on key strategic initiatives that we believe will drive growth and value for years to come.”
3. Arena Pharmaceuticals, Inc (NASDAQ:ARNA)
No of HFs: 43
Total Value of HF Holdings: $989 Million
ARNA is the 3rd best hemp stock to buy now. The top hedge fund holder of this stock is Kurt Von Emster’s VenBio Select Advisor which had $231 invested in the stock at the end of September. An insider recently purchased 5 shares at around $69 in December 2020. The stock is up 15% since then. ARNA is known for its novel medicines with pharmacology and pharmacokinetics. On February 2, 2021, EVP, Chief Commercial Officer of ARNA sold 17,500 shares of ARNA at an average price of $78.87 per share. The total sale was $1.4 million.
2. Altria Group, Inc. (NYSE:MO)
No of HFs: 47
Total Value of HF Holdings: $1.12 Billion
At the end of September, a total of 47 hedge funds tracked by Insider Monkey held long positions for this stock. An insider recently purchased 1,352 shares at around $52 in February 2019. The stock is down 19% since then. MO was mentioned as one of the Top 10 Sin Stocks to Buy Now. Artko Capital mentioned MO in its Q2 2020 investor letter:
“Altria Group (MO) – We made an 9% Core Portfolio investment in Altria group at sub $40.00 in 2019 with the view that it was a good place to park cash at an 8%+ dividend yield with liquidity and a 15- 25% annual IRR upside. When the stock reached $50+ in early 2020 we took half of our position off the table and took the rest off back at $40 in the spring 2020 as we are positioning our portfolio to have significantly higher upside in the nanocap space as the economy and the small cap markets recover over the next few years. We may come back to MO in the future as it is a solid dividend yielding investment, but as we mentioned earlier, our strategy does involve off-the-beaten-path companies with an opportunity to get repriced on growth of revenues and earnings and Altria Group’s low growth was not going to get us the returns we seek given the repricing of the value segment of the small cap markets.”
1. Philip Morris, Inc. (NYSE:PM)
No of HFs: 50
Total Value of HF Holdings: $2.63 Billion
The top hemp stock to buy now is PM. The top hedge fund holder of this stock is Donald Yacktman’s Yacktman Asset Management which had over $1 million invested in the stock at the end of September. An insider recently purchased 500 shares at around $78 in May 2019. The stock is up 6% since then. PM was mentioned in an article we published about the 15 Best Tasting E-juice E-liquid Flavors For Beginners. First Eagle Investment Management mentioned the stock in its Q2 2020 investor letter:
“Philip Morris was able to recover some of the ground lost during the first quarter selloff but remains well below its early-year highs. Tobacco industry volumes were hurt by Covid-19, as lockdowns and other social-distancing restrictions in certain key markets hurt demand. Duty-free sales also suffered given the lack of global travel during the period. Given its pricing power, cost discipline and robust balance sheet, we believe Philip Morris appears well positioned to navigate the ongoing transition from traditional combustible tobacco products to “heat not burn” alternatives.”
Please also see Top 10 Sin Stocks to Buy Now and 10 Best Technology Stocks That Pay Dividends.
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Disclosure: No positions.
