5 Best Marijuana Stocks to Invest In

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

Number of Hedge Fund Holders: 14

Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM) is a manufacturer and distributor of controlled environment agriculture equipment and supplies in the US and Canada. The company offers plant additives that can be used to grow, farm, and cultivate cannabis as well. It ranks 4th on our list of the best marijuana stocks to invest in.

This June, Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM) announced that it would be acquiring Aurora Innovations in a $161 million deal. The stock has also acquired House & Garden in May, which had lead to it surging by 4% in light of the news. In the first quarter of 2021, Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM) had an EPS of $0.19, beating estimates by $0.07. The company’s revenue was $111.39 million, beating estimates by $2.62 million, and it has a gross profit margin of 19.47%. The stock has gained 1.44% in the past 6 months and year to date.

By the end of the first quarter of 2021, 14 hedge funds out of the 866 tracked by Insider Monkey held stakes in Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM), worth about $84.3 million. This is compared to 19 hedge fund holders in the previous quarter, holding stakes worth roughly $117 million.

Madison Funds, an investment management firm, mentioned Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM) in its first-quarter 2021 investor letter. Here’s what they 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 recreational and medical use cannabis. Today about 60% of the population does not have access to recreational use cannabis which represents a massive growth opportunity.”