In this article, we discuss the top 10 marijuana stocks to invest in right now. You can skip our comprehensive analysis of the cannabis industry and go directly to Top 5 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.
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.
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.
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Disclosure: None. Top 10 Marijuana Stocks to Invest In Right Now is originally published on Insider Monkey.