5 Best Marijuana Stocks To Buy Now

In this article, we discuss 5 best marijuana stocks to buy now. If you want to see more stocks in this selection, check out 11 Best Marijuana Stocks To Buy Now. 

5. WM Technology, Inc. (NASDAQ:MAPS)

Number of Hedge Fund Holders: 9

WM Technology, Inc. (NASDAQ:MAPS) delivers ecommerce and compliance software solutions to retailers and brands operating in the cannabis market both in the United States and globally. The company also provides educational resources and information to assist new cannabis consumers in making informed decisions about the types of products they wish to purchase. On May 9, WM Technology, Inc. (NASDAQ:MAPS) reported a Q1 GAAP EPS of -$0.03 and a revenue of $48 million, and as of March 31, the company had a cash balance of $25.9 million with no outstanding long-term debt. It is one of the best marijuana stocks to buy. 

On March 17, Canaccord analyst David Hynes maintained a Buy rating on WM Technology, Inc. (NASDAQ:MAPS) and revised the firm’s price target for the shares to $3.00 from $4.75. The analyst expressed positive views on WM Technology, Inc. (NASDAQ:MAPS)’s Q4 results, noting their successful execution in achieving profitability and fulfilling their commitments. Hynes also mentioned that the company’s Q1 guidance indicates a continuation of these favorable trends, which are expected to extend throughout 2023.

According to Insider Monkey’s first quarter database, 9 hedge funds were long WM Technology, Inc. (NASDAQ:MAPS), compared to 15 funds in the prior quarter. Richard Mashaal’s Rima Senvest Management is the biggest stakeholder of the company, with 5.8 million shares worth about $5 million. 

4. Tilray Brands, Inc. (NASDAQ:TLRY)

Number of Hedge Fund Holders: 14

Tilray Brands, Inc. (NASDAQ:TLRY) is involved in the exploration, cultivation, manufacturing, promotion, and distribution of medical cannabis products. The company operates through four segments – Cannabis Business, Distribution Business, Beverage Alcohol Business, and Wellness Business. Its product portfolio comprises both medical and adult-use cannabis items, such as GMP-certified flowers, oils, vapes, edibles, and topicals. It is one of the best marijuana stocks to watch. 

On May 26, Tilray Brands (NASDAQ: TLRY) announced the pricing of its offering for $150 million in convertible senior notes, with an annual interest rate of 5.20%. These senior notes will mature in 2027. The closing of the offering is expected to take place on May 31, 2023. A portion of the net proceeds from this offering will be utilized to finance the concurrent repurchase of some of Tilray Brands’ outstanding 5.00% convertible senior notes due in 2023 and 5.25% convertible senior notes due in 2024. The rest of the proceeds will be allocated for general corporate purposes.

According to Insider Monkey’s first quarter database, 14 hedge funds were long Tilray Brands (NASDAQ: TLRY), compared to 18 funds in the earlier quarter. Sculptor Capital is a prominent stakeholder of the company. 

3. Innovative Industrial Properties, Inc. (NYSE:IIPR)

Number of Hedge Fund Holders: 15

Innovative Industrial Properties, Inc. (NYSE:IIPR) primarily focuses on acquiring, owning, and managing specialized properties. These properties are then leased to experienced operators who hold state licenses for their regulated medical-use cannabis facilities. The company’s main business involves providing real estate solutions for the cannabis industry. Innovative Industrial Properties, Inc. (NYSE:IIPR) is one of the top marijuana stocks to invest in.

On May 8, Innovative Industrial Properties, Inc. (NYSE:IIPR) reported a Q1 FFO of $2.25 and a revenue of $76.1 million, topping Wall Street estimates by $0.34 and $5.45 million, respectively. The company reported a net income attributable to common stockholders of around $40.8 million for the quarter, which translates to $1.43 per diluted share.

Compass Point analyst Merrill Ross assigned a Buy rating on Innovative Industrial Properties, Inc. (NYSE:IIPR) on May 17, albeit with a reduced price target of $100, down from $125. The analyst expressed a generally positive stance on net lease and mortgage real estate investment trusts that offer financing to state-licensed cannabis operators operating in highly regulated and relatively young markets. However, Ross believes that the era of rapid growth for these REITs is in the past. 

According to Insider Monkey’s first quarter database, 15 hedge funds were long Innovative Industrial Properties, Inc. (NYSE:IIPR), compared to 14 funds in the prior quarter. Stuart J. Zimmer’s Zimmer Partners is the largest stakeholder of the company, worth $142.6 million. 

2. The Scotts Miracle-Gro Company (NYSE:SMG)

Number of Hedge Fund Holders: 24

The Scotts Miracle-Gro Company (NYSE:SMG) is engaged in the production, promotion, and distribution of products targeted at lawn and garden care, as well as indoor and hydroponic gardening. The company has leveraged its expertise in horticulture and gardening to develop innovative technologies and solutions for cannabis cultivation. This includes advanced lighting systems, hydroponic equipment, and other tools designed to optimize growing conditions and maximize yields. It is one of the best marijuana stocks to invest in. 

On May 8, JPMorgan analyst Jeffrey Zekauskas upgraded The Scotts Miracle-Gro Company (NYSE:SMG) to Overweight from Neutral, while maintaining a price target of $80. In a research note to investors, the analyst stated that The Scotts Miracle-Gro Company (NYSE:SMG)’s cost pressure related to raw materials has subsided and is now expected to benefit significantly from lower prices of key raw materials. Scotts Miracle-Gro is a major purchaser of urea, potash, polyethylene, and diesel fuel, all of which are currently trading at considerably lower prices compared to 2022. The firm believes that Scotts Miracle-Gro is now an attractive investment option for those with a one-year time frame or a three- to five-year investment horizon.

According to Insider Monkey’s first quarter database, 24 hedge funds were bullish on The Scotts Miracle-Gro Company (NYSE:SMG), compared to 27 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is a prominent stakeholder of the company, with 592,947 shares worth $41.35 million. 

Madison Funds made the following comment about The Scotts Miracle-Gro Company (NYSE:SMG) in its Q4 2022 investor letter:

“Stock selection was the poorest for us in this sector. Two stocks in particular – Hain Celestial (HAIN) and The Scotts Miracle-Gro Company (NYSE:SMG) – while big winners for us in 2020 and 2021, hurt the portfolio in 2022.

While both companies were so-called COVID beneficiaries (businesses that benefited from consumers staying home and spending on their homes during COVID), we felt they possessed certain additional drivers that would maintain their fundamentals into 2022 and beyond.

Scott’s Miracle-Gro is arguably one of the great American franchises. The brand is synonymous with lawn care and pest control, has a dominant market share (~60%) with historically-impressive ~30% cash flow margins, and has the country’s largest Cannabis supply business. Scotts’ core business saw a significant windfall during COVID lockdowns. Lawn and garden care is not a growth business, and SMG dominance does not allow for much incremental gain in market share. However, our thesis was that even in a reopening scenario where lawn and garden businesses would revert to the mean, the cannabis market was poised for years of growth as more states legalized recreational use.

What we missed was the highly inefficient structure of the U.S. cannabis market. Currently, California, Colorado, and Michigan have the biggest and most mature markets. However, over the course of the last few years, several very large states and regions have voted to legalize recreational use, including New York, New Jersey, and Connecticut. The fly in the ointment has been Oklahoma, which is a medical marijuana state. Although recreational use is still prohibited, licenses to grow the crop were granted in Laissez Faire fashion to anyone willing to buy one. Oklahoma began to grow and cultivate the crop far in excess of their medical marijuana demand. That excess supply bled into grey markets across the country, devastating pricing for growers in other states. This glut put a near complete stop to capital spending on grow operations. With no new or incremental facilities coming on, Scotts’ Hawthorne business was cut in half from its peak in F21. This, of course, had a devastating effect on the stock.”

1. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)

Number of Hedge Fund Holders: 40

Jazz Pharmaceuticals plc (NASDAQ:JAZZ), as a pharmaceutical company, primarily focuses on the development and commercialization of innovative therapies in different therapeutic areas. Utilizing its GW Cannabinoid Platform, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) holds a prominent position in the field of cannabinoid science. The company strongly believes in the potential of cannabinoid medicines to bring about therapeutic advancements and fundamentally transform the way patients manage their frequently neglected illnesses. It is one of the prominent marijuana stocks to monitor. 

On May 11, Needham analyst Ami Fadia increased the firm’s price target on  Jazz Pharmaceuticals plc (NASDAQ:JAZZ) from $205 to $212 while maintaining a Buy rating on the shares. Despite the company’s Q1 results falling below consensus due to increased operating expenditure and tax rate, the analyst highlighted that all aspects of  Jazz Pharmaceuticals plc (NASDAQ:JAZZ)’s 2023 guidance were reaffirmed. Fadia believes that the company’s strong execution can persist, and also notes that Jazz Pharmaceuticals is favorably positioned for corporate development initiatives.

According to Insider Monkey’s first quarter database, 40 hedge funds were long  Jazz Pharmaceuticals plc (NASDAQ:JAZZ), compared to 38 funds in the prior quarter. Bernard Horn’s Polaris Capital Management is the biggest stakeholder of the company, with 1.30 million shares worth $191.3 million. 

Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily enewsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below. You can also check out 25 Most LGBTQ-Friendly Countries in the World and 14 Best Healthcare Dividend Stocks to Buy.