Top 10 Marijuana Stocks to Buy in 2022

Published on March 1, 2022 at 11:00 am by Ramish Cheema in News

In this piece, we will take a look at the 10 marijuana stocks to buy in 2022.

Marijuana or cannabis, commonly referred to as ‘weed’, was once considered a dangerous drug by governments and populations all over the globe. However, since then, public and government attitudes about the substance, which is primarily consumed in a plant form has changed. While originally criminalized in most Western nations, this shift in attitude has resulted in several countries changing their laws that had previously criminalized marijuana consumption.

One of these is Canada which had effectively legalized cannabis in 2018, bringing the laws regulating its usage in line with those that regulate alcohol consumption in the North American country. This created the potential of a legalized cannabis industry, through which legitimate businesses could market and sell the product to customers aged 18 and above. The initial development of the industry was slow, with reports indicating that the black market was outselling the white market by offering more distribution points and lower prices.

However, since then, the outlook has changed. For instance, a 2021 report by BNN Bloomberg outlined that in the three years since the legalization, the Canadian government had collected $1 billion in excise taxes from cannabis. Additionally, it also detailed that from the low hundreds, the number of marijuana and cannabis stores in Canada stood at 2,652 in 2021.

BNN’s figures are backed by the latest report from Deloitte Canada. The firm outlines that Cannabis sales since 2018 are now worth $11 billion, fueled by significant capital expenditures of $29 billion. Two-thirds of these figures represent recreational sales of the substance, and the bulk of the sales and expenditures are from Canada’s Ontario province. Deloitte also outlines that overall, the industry has contributed a whopping $43.5 billion to the Canadian Gross Domestic Product (GDP), with $25.2 billion being in the form of direct labor income.

The future outlook for the global cannabis industry is also strong if we go by a handful of research reports. One of these is from the research firm Quince Market Insights. In its report, released in July last year, Quince outlines that the industry is expected to have a compound annual growth rate (CAGR) of 27% from 2021 to 2030. The report estimated that the market was set to touch a value of roughly $20 billion by the end of 2021.

Another report, this time from Fortune Business Insights, outlined that the global Cannabis market was worth $20.47 billion in 2020 and had exhibited a remarkable annual growth rate of 50% during the time period. Fortune Business has an even stronger estimated CAGR for the cannabis sector, as it estimates that the industry will grow at a rate of 32.04% between 2021 and 2030. This will enable it to grow from an estimated value of $28.3 billion in 2021 to a whopping $198 billion as 2030 ends, believes the research firm. Some of the top companies that have made it on our list include Village Farms International, Inc. (NASDAQ:VFF), Trulieve Cannabis Corp. (OTCF:TCNNF), and Ayr Wellness Inc. (CNSX:AYR-A).

Therefore, we decided to take a look at some of the top performing marijuana stocks out there and see which companies pass the test.

Our Methodology

In order to determine which stocks can perform well during 2022, we took a look at the Wall Street analyst consensus for several publicly listed cannabis firms. This enabled us to determine the upside that the analyst price targets have set for the companies, and allowed us to rank the firms. Once this was achieved, we then took a look at the firms’ earnings reports and other metrics such as hedge fund sentiment generated through Insider Monkey’s survey of 924 funds for the fourth quarter of last year.

10 Marijuana Stocks To Buy in 2022

10. TerrAscend Corp. (OTC:TRSSF)

Number of Hedge Fund Holders: 1

Stock Price as of Feb. 24, 2022: $5.61

Analyst Upside In %: 70%

TerrAscend Corp. (OTC:TRSSF) is a Canadian company that was established in 2017. It sells medicinal and other use cannabis in the United States and in Canada. Its dispensaries are located in the American states of Pennsylvania and California

TerrAscend Corp. (OTC:TRSSF)’s shares closed at $5.61 on February 24, 2022, and at the same time, Wall Street analysts had an average consensus share price of $9.53 for the company. This marks a 70% expected upside over the quoted closing share price.

As its fiscal third quarter came to an end in November last year, TerrAscend Corp. (OTC:TRSSF) had reported $49 million in revenue and $0.28 in EPS, missing analyst revenue estimates. Insider Monkey’s Q4 2021 survey of 924 hedge funds revealed that one had owned a stake in the company.

One of TerrAscend Corp. (OTC:TRSSF)’s largest investors according to the Insider Monkey database is Justin John Ferayorni’s Tamarack Capital Management. The fund owns 150,000 shares worth $917,000.

Alongside Trulieve Cannabis Corp. (OTCF:TCNNF), Village Farms International, Inc. (NASDAQ:VFF), and Ayr Wellness Inc. (CNSX:AYR-A), TerrAscend Corp. (OTC:TRSSF) is a great marijuana stock to look at.

9. Green Thumb Industries Inc. (OTC:GTBIF)

Number of Hedge Fund Holders: 3

Stock Price as of Feb. 24, 2022: $19.65

Analyst Upside In %: 78%

Green Thumb Industries Inc. (OTC:GTBIF) is an American company that also sells different types of cannabis products. Its product portfolio includes raw cannabis flowers as well as processed products such as edibles and concentrates. The company operates in its market through several brands and sells products in the United States through retail stores. It also expanded its store network in February by opening two new stores in Virginia.

Green Thumb Industries Inc. (OTC:GTBIF)’s share price as of February 24, 2022, was $19.65. When compared to the analyst consensus estimates of $34.93, this marks a 78% upside. Insider Monkey’s research involving 924 hedge funds in Q4 2021 indicated that three had owned the company’s shares.

For its fiscal Q3, Green Thumb Industries Inc. (OTC:GTBIF) beat analyst revenue estimates and missed those for GAAP EPS, by posting $233 million and $0.08 in the segments, respectively. Wolfe Research set an Outperform rating for the company’s shares in January 2022, stating that its expansion approach was balanced and could help Green Thumb Industries Inc. (OTC:GTBIF) grow customer loyalty.

Green Thumb Industries Inc. (OTC:GTBIF)’s largest investor is Nancy Zevenbergen’s Zevenbergen Capital Investments, suggests Insider Monkey’s research. The firm owns 110,715 shares worth $2.4 million.

8. OrganiGram Holdings Inc. (NASDAQ:OGI)

Number of Hedge Fund Holders: 9

Stock Price as of Feb. 24, 2022: $1.48

Analyst Upside In %: 93%

OrganiGram Holdings Inc. (NASDAQ:OGI) is a Canadian company that covers several kinds of cannabis products and their distribution channels. The company sells to both retailers and wholesalers in Canada. It sells medicinal products such as oils, flowers and vaporizers; recreational products under several brands, and other cannabis products such as edibles. In addition to the physical distribution mediums, OrganiGram Holdings Inc. (NASDAQ:OGI) also offers its products online and over the telephone.

OrganiGram Holdings Inc. (NASDAQ:OGI)’s closing share price on the 24th of February, 2022 was $1.48. This marks a 93% upside over the consensus analyst estimate of $2.85. 9 out of 924 hedge funds part of Insider Monkey’s Q4 2021 survey had owned the company’s shares.

OrganiGram Holdings Inc. (NASDAQ:OGI) posted strong revenue growth during its first fiscal quarter results that were posted in January 2022. This revealed that the company’s revenue of $30.38 million during the quarter marked a strong 57% annual growth and beat consensus estimates by $7.1 million. At the same time, its net loss also dropped significantly, as it stood at $1.3 million when compared to the year-ago quarter’s $34 million.

OrganiGram Holdings Inc. (NASDAQ:OGI)’s largest investor is Ken Griffin’s Citadel Investment Group. This is through a $3.7 million stake via 2.1 million shares.

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

Number of Hedge Fund Holders: 7

Stock Price as of Feb. 24, 2022: $19.82

Analyst Upside In %: 102%

Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM), while not directly a part of the cannabis industry, is still responsible for providing the sector with crucial equipment. The company manufactures and sells agricultural environmental control equipment in the United States and in Canada. This equipment ensures that companies that do grow the cannabis plants have a sound environment that is suitable for growth requirements. Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) is headquartered in Pennsylvania, United States.

Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)’s share price stood at $19.82 as trading came to a halt on February 24, 2022. Compared to the analyst price consensus of $40, the closing price marks a 102% upside. Truist lowered the company’s price target to $50 from $65 in January 2022 but kept a Buy rating on the shares. The firm outlined that while the industry’s outlook was not optimistic, the company will recover.

For its fiscal Q3, Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) revealed that it had brought in $123 million in revenue and $0.17 in non-GAAP EPS. This enabled it to beat analyst revenue estimates but miss those for the EPS. Out of the 924 hedge funds surveyed by Insider Monkey in Q4 2022, 7 had owned a stake in the company.

Ken Griffin’s Citadel Investment Group is Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)’s largest investor. It owns 223,928 shares that are worth $6 million.

Baron Funds mentioned Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) in its Q4 2021 investor letter. Here is what the fund said:

“Our top 10 holdings represented 25.6% of the Fund’s net assets at the end of the fourth quarter. This is in line with historical weightings. Cash at the end of the quarter was 3.4%, which is in line with our low to mid-singledigit targeted levels. We exited our position in Hydrofarm Holdings Group, Inc. as we felt the macro headwinds the company was facing in its end-markets were both challenging and worsening.

6. GrowGeneration Corp. (NASDAQ:GRWG)

Number of Hedge Fund Holders: 12

Stock Price as of Feb. 24, 2022: $8.33

Analyst Upside In %: 138%

GrowGeneration Corp. (NASDAQ:GRWG) is an organic gardening and hydroponic equipment provider in the United States. This equipment covers several items such as humidifiers, fixtures, seeds, water pumps, and filters. The company is headquartered in Greenwood Village, Colorado.

As trading came to an end on February 24, 2022, GrowGeneration Corp. (NASDAQ:GRWG)’s shares were trading at $8.33, for a 138% upside over an analyst consensus of $19.83.

GrowGeneration Corp. (NASDAQ:GRWG) reported $116 million in revenue and $0.07 in GAAP EPS for its fiscal Q3, allowing it to beat analyst revenue estimates but miss them for the EPS. Insider Monkey’s hedge fund research covering 924 hedge funds in Q4 2021 outlined that 12 had owned the company’s shares.

GrowGeneration Corp. (NASDAQ:GRWG)’s largest investor is Jim Simons’ Renaissance Technologies who owns 818,115 shares worth $10 million.

GrowGeneration Corp. (NASDAQ:GRWG) is part of our list of top marijuana stocks, with some of the others being Ayr Wellness Inc. (CNSX:AYR-A), Trulieve Cannabis Corp. (OTCF:TCNNF), and Village Farms International, Inc. (NASDAQ:VFF).

5. Cresco Labs Inc. (OTCMKTS:CRLBF)

Number of Hedge Fund Holders: 1

Stock Price as of Feb. 24, 2022: $6.7

Analyst Upside In %: 139%

Cresco Labs Inc. (OTCMKTS:CRLBF) is a cannabis product provider that serves customers in the United States. It offers its customers a wide variety of products derived from the cannabis plant. This list includes edibles, popcorns, shakes, oils, transdermal patches, and more. The company sells both retail and medical products and is headquartered in Chicago, Illinois.

Cresco Labs Inc. (OTCMKTS:CRLBF)’s shares closed at $6.7 on February 24, 2022. At the same time, the consensus price target estimate for the company’s shares was $16, which translates into a 139% upside.

For its fiscal Q3, Cresco Labs Inc. (OTCMKTS:CRLBF) reported $215 million in revenue and $56.45 in earnings before interest taxes and depreciation (EBITDA). While the revenue missed analyst estimates, it and the EBITDA grew by 40% and 26% annually, and the company reaffirmed its annual guidance at the event. Jefferies raised the company’s price target to CAD$36 in November 2021, outlining that the earnings results revealed impressive margins and that sales will pick up in the future. As of the fourth quarter of last year, out of the 924 hedge funds surveyed by Insider Monkey, one had owned the company’s shares.

A large Cresco Labs Inc. (OTCMKTS:CRLBF) investor is Frederick Disanto’s Ancora Advisors who owns 244,634 shares worth $1.6 million.

4. Curaleaf Holdings, Inc. (OTCMKTS:CURLF)

Number of Hedge Fund Holders: N/A

Stock Price as of Feb. 24, 2022: $7.5

Analyst Upside In %: 152%

Curaleaf Holdings, Inc. (OTCMKTS:CURLF) is an American cannabis company that sells marijuana products and also helps other firms develop their offerings. The company sells cannabis through its Operations segment. Additionally, it also provides consultancy services to growers, advising them on areas such as how to operate retail channels and cultivate their products.

Curaleaf Holdings, Inc. (OTCMKTS:CURLF) had a closing share price of $7.5 on February 24, 2022, making for a 152% upside over the consensus price estimate of $18.93.

For its fiscal third quarter, Curaleaf Holdings, Inc. (OTCMKTS:CURLF) reported $317 million in revenue and -$0.08 in GAAP EPS, which marked for a strong 73.8% annual revenue growth but disappointed Wall Street by missing estimates for both.

3. Trulieve Cannabis Corp. (OTCF:TCNNF)

Number of Hedge Fund Holders: 1

Stock Price as of Feb. 24, 2022: $21.48

Analyst Upside In %: 195%

Trulieve Cannabis Corp. (OTCF:TCNNF) is an American company that solely targets the medicinal cannabis market. The company is headquartered in Quincy, Florida and it operates dispensaries in several American states such as California and Massachusetts. It also has a wide variety of products such as edibles, flowers, vaporizers, and cartridges.

As trading closed on February 24, 2022, Trulieve Cannabis Corp. (OTCF:TCNNF) shares were trading at $21.48, marking a 195% upside over the analyst consensus estimate of $63.4. Of the 924 hedge funds part of Insider Monkey’s fourth quarter 2021 survey, one had holdings in the company.

Trulieve Cannabis Corp. (OTCF:TCNNF) reported $224 million in revenue and $18.6 million in net income for its third fiscal quarter, which enabled it to beat analyst revenue estimates and post a strong 64% annual growth in the metric. Wolfe Research initiated coverage on the company in January this year and set an Outperform rating on the stock outlining that the company had strong pricing power due to efficient store management and market share retention strategies.

Justin John Ferayorni’s Tamarack Capital Management is an important Trulieve Cannabis Corp. (OTCF:TCNNF) investor according to Insider Monkey’s research. It owns 85,000 shares that are worth $2.2 million.

2. Village Farms International, Inc. (NASDAQ:VFF)

Number of Hedge Fund Holders: 9

Stock Price as of Feb. 24, 2022: $5.26

Analyst Upside In %: 209%

Village Farms International, Inc. (NASDAQ:VFF) is a greenhouse-grown vegetable company that has also expanded its presence to include the cannabis market. The company targets this market via its Cannabis and Hemp Business, and the company has planted millions of seedlings over hundreds of acres.

Village Farms International, Inc. (NASDAQ:VFF)’s consensus price target marks for a 209% premium over its closing share price of $5.26 on February 24, 2022. Cantor Fitzgerald set a $12.75 price target for the company in November 2021, stating that the company’s strong grower advantages will serve it well in an expanding market.

For its fiscal third-quarter, Village Farms International, Inc. (NASDAQ:VFF) brought in $72.4 million in revenue and $0.01 in GAAP EPS, beating analyst estimates for both metrics. Nine out of 924 hedge funds surveyed by Insider Monkey in Q4 2021 owned the company’s shares.

Village Farms International, Inc. (NASDAQ:VFF)’s largest investor according to Insider Monkey’s research is Jim Simons’ Renaissance Technologies who owns 192,300 shares worth $1.2 million.

1. Ayr Wellness Inc. (CNSX:AYR-A)

Number of Hedge Fund Holders: 1

Stock Price as of Feb. 24, 2022: $17.89

Analyst Upside In %: 287%

Ayr Wellness Inc. (CNSX:AYR-A) is a multi-stage cannabis product provider. The company is capable of cultivating, extracting, manufacturing, retailing, and distributing cannabis products. It is headquartered in New York, New York, United States.

Ayr Wellness Inc. (CNSX:AYR-A)’s shares closed at $17.89 on February 24, 2022. Compared to the consensus analyst price of $69.29, this translates into a 287% upside. Insider Monkey’s survey of 924 hedge funds in the fourth quarter of last year revealed that one had a stake in the firm.

For its fiscal third quarter, Ayr Wellness Inc. (CNSX:AYR-A) brought in $96 million in revenue and $0.03 in GAAP EPS, in a mixed bag of results that saw it beat analyst EPS estimates but miss them for revenue.

A major Ayr Wellness Inc. (CNSX:AYR-A) investor is Frederick Disanto’s Ancora Advisors who owns 9,300 shares worth $141,000.

Top 10 Marijuana Stocks to Buy in 2022

Published on March 1, 2022 at 11:00 am by Ramish Cheema in News