In this article, we discuss the top 10 marijuana stocks to invest in right now.
The global legal marijuana industry is predicted to increase at a compound annual growth rate (CAGR) of 25.5% from 2022 to 2030, according to Grand View Research, a San Francisco-based research firm. With the surging events of the COVID-19 pandemic, the worldwide cannabis industry is still ascending and was estimated to be worth $25,650.4 million last year.
A research report by Pew Research Center published by Andrew Daniller in 2019 also suggests that two-thirds of Americans believe marijuana usage should be legal, a consistent increase over the last decade. The proportion of adults in the United States who oppose legislation has decreased from 52% in 2010 to 32% presently.
Another reason why there is an evident boom in the Cannabis industry is because of the 2019 Farm Bill. The bill descheduled some cannabis products from the Controlled Substances Act for the first time in U.S. history. This made it federally legal to produce and sell hemp and its derivatives like CBD oil. The demand for cannabis products is due to their wellness and health purpose.
Our Methodology
The list includes cannabis-related businesses with long-term growth prospects. To give readers more context for their investing decisions, the company fundamentals and analyst ratings for these companies are also reviewed and presented.
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Top 10 Marijuana Stocks to Invest In Right Now
10. Aurora Cannabis Inc. (NASDAQ:ACB)
Aurora Cannabis (NASDAQ:ACB) is a leading global cannabis company with an active presence in 24 countries across five continents. Aurora Cannabis reported $45.7 million in medical marijuana sales in the second quarter of the fiscal year 2022, representing 75% of total income.
Analysts disclosed that Aurora Cannabis (NASDAQ:ACB) grew its revenue at a CAGR of 179.41% over the past five years. Aurora Cannabis (NASDAQ:ACB) is also expected to report revenue growth at a CAGR of 24.61% in the next three years.
Aurora Cannabis (NASDAQ:ACB) announced in March that it has struck an agreement to buy all of TerraForma Inc.’s issued and outstanding shares. The transaction is expected to allow Aurora to more effectively strengthen its position in Canada by putting the Thrive team in command of the company’s Canadian recreational business, and moving the focus to innovative high-quality items like dried flowers, and pre-rolls, vapor products, and concentrates.
CIBC analyst John Zamparo raised Aurora Cannabis (NASDAQ:ACB) to ‘Neutral’ from ‘Underperformer’, with a price objective of C$9.25 up from C$6.50. While retail sales have not yet stabilized, Zamparo believes that international medical gains and planned cost reduction will result in “continuous development toward profitability.”
In addition to Canopy Growth Corporation (NASDAQ:CGC), Village Farms International, Inc. (NASDAQ:VFF), and The Green Organic Dutchman Holdings Ltd. (CNSX:TGOD), Aurora Cannabis (NASDAQ:ACB) is one of the notable cannabis stocks today.
9. Canopy Growth Corporation (NASDAQ:CGC)
Canopy Growth Corporation (NASDAQ:CGC) and its subsidiaries produce, distribute, and sell cannabis and hemp-based products for recreational and medicinal reasons in Canada, the United States, and Germany.
Canopy Growth Corporation (NASDAQ:CGC) announced a variety of efforts to decrease expenses and increase efficiency in order to speed the company’s path to profitability. Within the next 12-18 months, management intends to save $30-$50 million on the cost of goods sold (COGS) and lower SG & A spending by $70-$100 million.
Cantor Fitzgerald analyst Pablo Zuanic boosted the firm’s price objective on Canopy Growth Corporation (NASDAQ:CGC) to C$11.00 from C$9.60, while maintaining a Neutral rating on the stock. Zuanic believes that it would make more sense for Constellation (STZ) to purchase the entire Canopy Growth float rather than waiting to strike the warrants when they are in the money and that a combined Constellation-Monster Beverage (MNST) may make acquiring Canopy Growth simpler in the long run.
8. Innovative Industrial Properties, Inc. (NYSE:IIPR)
Innovative Industrial Properties, Inc. (NYSE:IIPR) is a Maryland firm that focuses on the acquisition, ownership, and administration of specialized properties leased to experienced, state-licensed operators for their regulated medical-use cannabis operations.
With a $175 price target, Craig-Hallum analyst Eric Des Lauriers also raised Innovative Industrial Properties, Inc. (NYSE:IIPR) to ‘Buy’ from ‘Hold’. While valuation has kept the analyst on the sidelines, a short report in April sparked strong recent underperformance vs peers, with shares currently trading at an uncommon discount to rivals.
Innovative Industrial Properties, Inc. (NYSE:IIPR), along with Canopy Growth Corporation (NASDAQ:CGC), Village Farms International, Inc. (NASDAQ:VFF), and The Green Organic Dutchman Holdings Ltd. (CNSX:TGOD), is a notable cannabis firm today.
7. Curaleaf Holdings Inc. (CNSX:CURLF)
Curaleaf Holdings, Inc. (CNSX:CURLF) is a marijuana company based in the United States. Cannabis Operations and Non-Cannabis Operations are the two segments in which it works. In a report by Stone Fox Capital in December 2021, it is suggested that Curaleaf Holdings, Inc. (CNSX:CURLF) is predicted to generate $1.6 billion in revenue in 2022 with good EBITDA margins.
Expecting to close the transaction in the second half of 2022, Curaleaf Holdings, Inc. (CNSX:CURLF) announced in a press release in November 2021 that they entered a definitive agreement to acquire Tryke Companies (“Tryke”) in an approximately $286 million deal in a cash and stock transaction.
Alliance Global Partners analyst Aaron Grey reduced the firm’s price target on Curaleaf to C$15 from C$21 and maintained a Buy rating on the stock after the company reported quarterly sales that were “roughly in line” with his estimates, as well as EBITDA dollars and margins that were higher than his and the Street’s estimates. Despite 2022 sales projections falling short of expectations, Grey feels the company’s midpoint remains “achievable and beatable.”
6. Cronos Group, Inc. (NASDAQ:CRON)
Cronos Group, Inc. (NASDAQ:CRON) is a cannabis manufacturer. Under Lord Jones and Happy Dance brands, it manufactures, promotes, and sells hemp-derived supplements and cosmetics through e-commerce, retail, and hospitality partner channels in the United States. Cronos Group, Inc. (NASDAQ:CRON) and Ginkgo Bioworks Inc. announced a strategic partnership to produce cultured Cannabinoids and also announced a $100 million Strategic Investment by Altria Group, Inc.
Analyst reports reveal that the fourth-quarter net revenue of Cronos Group, Inc. (NASDAQ:CRON) increased by 51% to $25.8 million. Canaccord analyst Matt Bottomley raised Cronos Group, Inc. (NASDAQ:CRON) stock price objective to C$4.50 from C$4.25. Bottomley informs investors in a research note that the company’s first quarter earnings exceeded expectations due to ongoing gross margin expansion after finally inflecting into positive territory at the end of 2021.
Cronos Group, Inc. (NASDAQ:CRON), along with Canopy Growth Corporation (NASDAQ: CGC), Village Farms International, Inc. (NASDAQ:VFF), and The Green Organic Dutchman Holdings Ltd. (CNSX:TGOD), is a notable cannabis company today.
5. Tilray, Inc. (NASDAQ:TLRY)
Stock Price as of April 22, 2022: $5.24
Tilray, Inc. (NASDAQ:TLRY) is a multinational pharmaceutical, cannabis-lifestyle, and consumer packaged products firm based in New York City, New York.
Tilray, Inc. (NASDAQ:TLRY) reported a net income of $6 million in the second quarter of the fiscal year 2022, up from a net loss of $89 million in the previous quarter. Another financial report from the firm in 2021 stated that there is a 28% in gross profit to $123.2 million compared to $96.1 million in 2020.
In March, Tilray, Inc. (NASDAQ:TLRY) also announced that they planned commercial and financial collaboration agreements with HEXO Corp. (NASDAQ:HEXO). The planned partnership is expected to bring together Canada’s top two cannabis market share leaders.
Canaccord analyst Matt Bottomley raised Tilray, Inc. (NASDAQ:TLRY) to ‘Buy’ from ‘Hold’ with a $9 price objective after the business and HEXO Corp. (NASDAQ:HEXO) announced a prospective arrangement that involves both a financial and marketing relationship. Bottomley believes that the planned commercial agreement will result in enhanced product breadth, financial synergies, and leveraged innovation for both.
4. Green Thumb Industries Inc. (OTC:GTBIF)
Stock Price as of April 22, 2022: $15.8
Green Thumb Industries Inc. (OTC:GTBIF) manufactures, distributes, and sells different cannabis products for medicinal and recreational use in the United States. It sells cannabis flowers as well as processed and packaged cannabis goods like pre-rolls, concentrates, vapes, tinctures, edibles, topicals, and other cannabis-related items.
Stone Fox Capital reported that with the arrival of legal cannabis in New Jersey this year and recreational cannabis in New York in 2023, Green Thumb Industries Inc. (OTC:GTBIF) should see a significant increase in sales and EBITDA.
Stone Fox Capital also mentioned that the EBITDA will exceed $300 million in 2022 and $450 million in 2023. The stock is trading at less than 10x EBITDA estimates for this year and less than 7x EBITDA targets for 2023.
Following the release of the first-quarter data, Alliance Global Partners analyst Aaron Grey reduced the firm’s price objective on Green Thumb Industries Inc. (OTC:GTBIF) to C$38 from C$40 and maintained a ‘Buy’ rating on the stock. Grey reported that while margins may fall below management expectations due to price pressure, the firm should recover to targets as a result of additional adult-use states.
3. OrganiGram Holdings, Inc. (NASDAQ:OGI)
Stock Price as of April 22, 2022: $1.91
OrganiGram Holdings, Inc. (NASDAQ:OGI) provides medical cannabis to civilians and veterans, including cannabis flowers, oils, and vaporizers; adult-use recreational cannabis; and cannabis edibles.
OrganiGram Holdings, Inc. (NASDAQ:OGI) generated $3.4 million in its international revenue in its first quarter of the fiscal year 2022 after having no global sales in the fourth quarter of the fiscal year 2021.
OrganiGram Holdings, Inc. (NASDAQ:OGI) also saw a rise of 265% in edible sales to $1.9 million, a 13% increase in vape sales to $1.1 million, a 2% increase in flower sales to $21.3 million, and a 5% increase in medical sales to $2.1 million.
Analyst Matt Bottomley of Canaccord Genuity raised OrganiGram Holdings, Inc. (NASDAQ:OGI) to ‘Speculative Buy’ from ‘Hold’, with a price objective of C$3.25, up from C$3.00. Bottomley said that the company’s first-quarter financial performance constituted a second straight quarter of higher-than-expected revenues and adjusted EBITDA.
2. Ayr Wellness Inc. (CNSX:AYR-A.CN)
Stock Price as of April 22, 2022: $11.08
Ayr Wellness Inc. (CNSX:AYR-A.CN) cultivates, produces, and retails cannabis products and branded cannabis packaged goods as a vertically-integrated cannabis multi-state company.
A report released by Ayr Wellness Inc. (CNSX:AYR-A.CN) reveals that they hit a revenue of $111.8 million for the fourth quarter of 2021, which is a 16% increase from the third quarter of $96.2 million. A total of $357.6 million for the revenue of fiscal year 2021 was reported which is also a 130.6% increase from the fiscal year 2020 of $155.1 million.
Ayr Wellness Inc. (CNSX:AYR-A.CN) intends to expand to 12 to 15 states in the future, but will not seek prospects in Maine, Vermont, Washington, Oregon, or Oklahoma. New York, on the other hand, matches the firm’s profile as a potentially profitable market.
Needham analyst Matt McGinley reduced the firm’s price objective on Ayr Wellness Inc. (CNSX:AYR-A.CN) to $28 from $35 but maintains a ‘Buy’ rating on the stock ahead of the company’s fourth-quarter earnings. McGinley stated that the firm should slightly surpass its revenue growth projection of “over 10%,” but he also anticipates a fall in EBITDA rate as it supports retail addition and invests in cultivation development into fiscal year 2022.
1. Village Farms International, Inc. (NASDAQ:VFF)
Stock Price as of April 22, 2022: $4.39
Village Farms International, Inc. (NASDAQ:VFF) is a vertically integrated cannabis grower and vegetable supplier based in Delta, British Columbia, Canada.
The current enterprise value of the firm is standing at $412.6 million. Village Farms International, Inc. (NASDAQ: VFF) reported its sales to have climbed by 58% to $268,020 for December 31, 2021, compared to $170,086 on December 31, 2020.
A recent report from Stone Fox Capital suggested that Village Farms International, Inc. (NASDAQ:VFF) is “impressively profitable.”
Alliance Global Partners analyst Aaron Grey decreased the firm’s price objective on Village Farms to $17 from $20 and maintained a ‘Buy’ rating on the stock.
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