7 Cannabis Stocks That Offer Much More Than Just Pot (2022)

During the Trump administration, one commodity strangely sparked consensus in what was otherwise a tumultuous period. That’s right, I’m talking about cannabis! With landmark legislation such as the Agriculture Improvement Act of 2018, colloquially known as the hemp bill, the fundamentals boded very well for cannabis stocks.

During the runup to the 2020 election, now President Joe Biden pledged to decriminalize marijuana. Although it was a tad bit short of full legalization, the overture was well received by proponents of both personal liberties and marijuana stocks. Further, with the Biden administration having the benefit of Democratic control of Congress (albeit a tenuous one), the future looks bright for botanicals.

At the same time, investors need to be realistic about cannabis stocks. Yes, the legislative backdrop continues to support the concept of legalization, with even conservative states warming up to acceptance of the plant to various degrees or conditions. Yet the marijuana investment market hasn’t been the most stable, irrespective of the encouraging ecosystem.

This is why prospective buyers who are bullish on cannabis stocks should consider companies that offer a diversified take on the industry. These include companies that offer traditional cannabis-based solutions but other products as well. And they might not even be marijuana firms at all but provide necessary services for the industry. Some of these names include the following:

  • Scotts Miracle-Gro (NYSE:SMG)
  • AbbVie (NYSE:ABBV)
  • Pfizer (NYSE:PFE)
  • Constellation Brands (NYSE:STZ)
  • cbdMD (NYSEAMERICAN:YCBD)
  • Innovative Industrial Properties (NYSE:IIPR)
  • Village Farms (NASDAQ:VFF)

Lastly, the market is turning quite volatile recently. That might hurt pure-play marijuana stocks, which are largely speculative. By expanding your horizon, these companies will get you some exposure to cannabis while providing coverage for other relevant industries.

Scotts Miracle-Gro (SMG)

7 Cannabis Stocks That Offer Much More Than Just Pot (1)

Source: Casimiro PT / Shutterstock.com

Technically not a classic among cannabis stocks, Scotts Miracle-Gro is nevertheless an important name in the botanical industry. Featuring a variety of gardening resources and hydroponic solutions, Scotts is a brand people trust for non-controversial projects, as well as the more adventurous side of the gardening sector.

Better yet, the general banality of SMG stock is what makes it so appealing. If you have a robust portfolio of marijuana stocks, chances are, you’re levered to some of the sexier names in the green market. But you likely won’t go wrong with adding Scotts Miracle-Gro in there considering its diverse exposure to several relevant uses.

(Video) 7 Ways to Invest in Marijuana Stocks! 🌿🔥

You know what? It’s not too shabby on the performance end either. Over the trailing year, SMG stock is up 128%. On a year-to-date basis, we’re looking at nearly 20% up. Since we don’t know what’s going to happen with the cannabis environment, Scotts offers a solid safety valve.

AbbVie (ABBV)

Another company that’s technically a non-cannabis brand, I’m going to include AbbVie anyways on this list of marijuana stocks. A few years ago, green-friendly investors added ABBV stock to their portfolio on the basis of Marinol, a cannabinoid indicated in adults for anorexia and associated with weight loss in patients with AIDS.

However, at the end of 2019, Alkem Labs acquired Marinol from AbbVie in a $10 million deal. Nevertheless, if you’re looking for business diversity in your cannabis stocks, ABBV remains an equity unit to consider. That’s because in the year that it sold Marinol, it had 59 cannabis patents, far more than second-place holder Sanofi (NASDAQ:SNY) at 39 patents.

Logically, this indicates that management sees substantial value in medicinal marijuana research. Plus, as a diversified opportunity, I especially like ABBV stock for the underlying company’s acquisition of Botox. Once we’re fully recovered from this pandemic, shares could see significant upside from increased demand in elective procedures.

Pfizer (PFE)

7 Cannabis Stocks That Offer Much More Than Just Pot (3)

Source: Manuel Esteban / Shutterstock.com

If you didn’t know the brand Pfizer before the novel coronavirus pandemic, you certainly know it now. Along with Moderna (NASDAQ:MRNA), Pfizer was on the frontlines of the vaccine race, developing a messenger-RNA-based solution. Thanks to the approach’s rapid-fire manufacturing capabilities, PFE stock enjoyed an appeal that it really didn’t receive for a long time.

But as a play on cannabis stocks? Have I lost my mind? This is one that surprised me, but Pfizer currently has “25 U.S. patents for molecules relating to the cannabis plant.” As with big pharmaceutical rival AbbVie, Pfizer apparently sees significant value in medical marijuana and has enough confidence in its upward trajectory to fork over some research and development dollars.

(Video) 3 Best Cannabis Stocks and Why Invest NOW

If you’re gung-ho on marijuana stocks, PFE isn’t going to light up the leader board anytime soon. However, it’s an interesting play on diversification. Should the Covid-19 crisis worsen, Pfizer could cynically rise higher. And if not, the company might start directing more effort on its botanical resources.

Constellation Brands (STZ)

7 Cannabis Stocks That Offer Much More Than Just Pot (4)

Source: ShinoStock / Shutterstock.com

An excellent candidate among vice-related investments, Constellation Brands offers a multi-faceted take on cannabis stocks. Primarily, Constellation is a beverage conglomerate best known for Corona (not virus). But weed investors know STZ stock because the underlying company has a significant stake in Canopy Growth (NASDAQ:CGC).

True, you can just get shares of Canopy to get more direct exposure to the cannabis side of the equation. However, marijuana stocks have been on the shaky side as of late. For instance, for most of March, CGC has traded below its 50-day moving average, which is not a great sign if you’re a proponent of technical analysis.

While Canopy outperforms STZ stock on a YTD basis, the latter at time of writing is trading above its 50 DMA. This suggests more stability for Constellation’s business, which is centered on alcoholic drinks.

But on the cannabis side, Constellation offers Canopy a strategic partnership as CGC attempts to break into the U.S. cannabidiol (CBD)-infused beverage market. This is an interesting space that investors should watch closely.

cbdMD (YCBD)

7 Cannabis Stocks That Offer Much More Than Just Pot (5)

(Video) 🌿 LEGALIZING POT - Are Cannabis Stocks About To Boom?

Source: Shutterstock

As the name suggests, cbdMD focuses exclusively on CBD so you’re not going to find non-cannabis-related products here. However, I still include it on this list of diversified cannabis stocks because of the myriad options that the underlying compound opens up. Go to cbdMD’s website and you’ll find virtually every product you need for overall health and wellness, ranging from tinctures to sleep aids to bath products.

Interestingly, when I first covered YCBD stock, the underlying company endorsed a few notable names, most prominently two-times Masters champion Bubba Watson. This effectively demonstrated the confidence that cbdMD places in its broad spectrum CBD products — if Watson got pinged for a positive drug test result, YCBD would presumably suffer badly.

Today, the company has added many more athletes to its roster, including one of my favorite mixed-martial arts fighters Chael Sonnen. Featuring the CBD Recover anti-inflammation cream, if it works for a cage fighter, I’m sure it also works for keyboard commandos.

Plus, Sonnen might put you into a rear naked choke hold if you don’t buy YCBD stock so that’s another good incentive to consider shares.

Innovative Industrial Properties (IIPR)

7 Cannabis Stocks That Offer Much More Than Just Pot (6)

Source: Shutterstock

Consistently one of the top-performing cannabis stocks over the last several years, Innovative Industrial Properties is a botanical business that focuses on the other kind of green products. Structured as a real estate investment trust (REIT), Innovative Industrial provides real estate capital to the medical-use cannabis industry.

As a REIT, IIPR stock is a very shareholder-friendly opportunity. That’s because the underlying company must distribute through a dividend at least 90% of its taxable income. I suppose there’s some controversy with this business model in that it might focus too much attention on shareholders and not enough on growing viable enterprises.

(Video) Five Best Cannabis Stocks To Buy Right Now

I look at it this way — years ago, too many players were focused on outright growth and not on sustainability. Through the turbulence, IIPR stock generally performed well because management made sensible decisions, not emotional ones.

Moving forward, this disciplined approach is exactly what you need with this sometimes chaotic market. Moreover, we don’t know which specific cannabis firm will stick around. However, as long as the industry remains relevant, there will always be a need for business capital, making IIPR stock a compelling idea.

Village Farms (VFF)

7 Cannabis Stocks That Offer Much More Than Just Pot (7)

Source: Shutterstock

According to the website of Village Farms, the company claims to be “one of the largest and longest-operating vertically integrated greenhouse growers in North America and the only publicly traded greenhouse produce company in Canada.” Primarily, its business revolves around producing and distributing fresh, premium-quality produce.

And no, don’t look to get high on Village Farms’ tomatoes, cucumbers and peppers — they really are just that.

But where VFF stocks gets interesting for those seeking a multifaceted approach to their cannabis stocks is the underlying company’s ambitions for the U.S. hemp-derived CBD market. On Village Farms’ investor relations page, it notes that the firm has “established a joint venture, Village Fields Hemp USA, LLC, for multi-state outdoor hemp cultivation and CBD extraction and plans to pursue controlled environment hemp production at its Texas greenhouse operations.”

Two factors bolster Village Farms’ long-term strategies. First, a majority of Americans support marijuana legalization. Second, the Democrats need job-building opportunities and the botanical sector is a natural place to look. That bodes well for marijuana stocks, even the less-than-direct ones like VFF.

On the date of publication, Josh Enomoto held a long position in YCBD.

(Video) TOP 5 WEED STOCKS, MARIJUANA STOCKS, BEST WEED STOCKS TO BUY, POT STOCKS, CRON STOCK, SNDL STOCK,

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare.

FAQs

What are the best CBD stocks to invest in? ›

Investing in CBD Stocks
CompanyMarket Cap
Canopy Growth (NASDAQ:CGC)$3 billion
Charlotte's Web Holdings (OTC:CWBHF)$172 million
Cresco Labs (OTC:CRLBF)$2.1 billion
Jazz Pharmaceuticals (NASDAQ:JAZZ)$8.5 billion
1 more row

What is the best hemp stock to buy? ›

With the growing popularity of medical marijuana across North America, many investors consider investing in stock-exchange listed companies.
...
  1. Jazz Pharmaceuticals (JAZZ) ...
  2. Constellation Brands (STZ) ...
  3. AbbVie (ABBV) ...
  4. Altria (MO) ...
  5. Corbus Pharmaceuticals Holdings, Inc. ...
  6. Tilray Inc (TLRY) ...
  7. HEXO Corp. ...
  8. Cronos Group Inc.

Is canopy growth a buy? ›

17 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Canopy Growth in the last twelve months. There are currently 9 sell ratings, 6 hold ratings and 2 buy ratings for the stock. The consensus among Wall Street analysts is that investors should "hold" CGC shares.

How do I buy Curaleaf stock? ›

Our stock can be purchased by contacting a registered stock broker or through an online stock brokerage service for self-directed investors.

What is the most successful CBD company? ›

The largest CBD company in the U.S. is Charlotte's Web, with a revenue of $96.1 million. As of 2021, the U.S. CBD industry has a market size of $12.8 billion. As of 2020, one-third of all Americans have used CBD products.

How high can Cresco Labs stock go? ›

The 16 analysts offering 12-month price forecasts for Cresco Labs Inc have a median target of 7.57, with a high estimate of 17.95 and a low estimate of 3.58. The median estimate represents a +179.39% increase from the last price of 2.71.

Will hemp stock ever go up? ›

HEMP holds several negative signals and is within a very wide and falling trend, so we believe it will still perform weakly in the next couple of days or weeks.
...
Predicted Opening Price for HEMP, INC. of Monday, October 3, 2022.
Fair opening price October 3, 2022Current price
$0.0003$0.0003 (Overvalued)

Should I buy Aurora Cannabi stock? ›

Aurora remains a big gamble

Aurora trades at just 1.7 times sales, which is cheap compared to Canopy Growth, where investors are paying 3.6 times revenue. But that's irrelevant because as long as Aurora has problems with growth and cash burn, there's really no reason to consider buying the pot stock.

Who is the biggest producer of hemp? ›

In 2019, the largest hemp producers in the country by acreage were:
  • Colorado: 52,275 acres.
  • Montana: 45,000 acres.
  • Kentucky: 26,500 acres.
  • California: 21,844 acres.
  • Oklahoma: 21,635 acres.
23 Oct 2020

Which penny stock is good to buy now? ›

Best Penny Stocks to Buy In India
  • Vodafone Idea Ltd. Telecom.
  • Alok Industries Ltd. Textile.
  • Jammu & Kashmir Bank Ltd. Banking.
  • Indian Overseas Bank. Banking.
  • Bank of Maharashtra Ltd. Banking.
  • Dish Tv India Ltd. Satellite Television.
  • Morepen Laboratories Ltd. Pharmaceutical.
8 Sept 2022

What is the target price for Canopy Growth? ›

Stock Price Target CGC
High$10.20
Median$2.37
Low$1.55
Average$2.92
Current Price$2.73

Why is Canopy Growth dropping? ›

Canopy Growth reported a 36% drop in revenue from Canadian recreational cannabis sales compared with the same quarter a year ago. Canopy Growth stock is plummeting after the marijuana company delivered financial results that fell short of expectations.

What is the price target for Curaleaf? ›

Stock Price Target CURLF
High$14.89
Median$9.32
Low$7.00
Average$10.07
Current Price$4.94

Is Curaleaf stock a good buy? ›

9 Wall Street analysts have issued "buy," "hold," and "sell" ratings for Curaleaf in the last year. There are currently 2 hold ratings and 7 buy ratings for the stock. The consensus among Wall Street analysts is that investors should "buy" CURLF shares. View CURLF analyst ratings or view top-rated stocks.

What is the forecast for Curaleaf? ›

The 17 analysts offering 12-month price forecasts for Curaleaf Holdings Inc have a median target of 9.32, with a high estimate of 14.89 and a low estimate of 7.00. The median estimate represents a +87.89% increase from the last price of 4.96.

What is considered a high level of CBD? ›

When looking at a strain's cannabinoid content, it is quite common to find a THC content ranging from around 12 – 25 percent, with anything at 20 or more being considered very strong. This is not the case when it comes to CBD; any CBD content level that is 4 percent or higher is considered a high CBD strain.

How long does 25 mg of CBD stay in your system? ›

Since it takes approximately five half-lives to completely eliminate a drug from the human body, it's likely that CBD stays in the system for about 85 hours, or about 3.5 days” says Dr.

Does CBD help with arthritis? ›

The American Arthritis Foundation reports that CBD may be a beneficial option for people with arthritis and recommends discussing all treatments with your healthcare provider. For many people, this non-psychotropic, mild cannabinoid can offer relief from the chronic pain of osteoarthritis with minimal side effects.

Is CBD worth investing in? ›

CBD is a newer product to the market than marijuana itself and many people don't know about it just yet, however, it has proven to have steady growth and looks as though it will only grow more in the future, making it a worthy investment, despite it still being a new market.

Is Charlotte's Web a good stock to buy? ›

The 4 analysts offering 12-month price forecasts for Charlotte's Web Holdings Inc have a median target of 1.25, with a high estimate of 1.55 and a low estimate of 0.65. The median estimate represents a +207.05% increase from the last price of 0.41.

Is the CBD market saturated? ›

The CBD market is saturated, but there's a bright future for fiber, hurd, and bast. The CBD market is saturated, but there's a bright future for fiber, hurd, and bast.

Who is the owner of 3CHI? ›

As Justin Journay, the founder and CEO of 3CHI, has commented: “This is a unique opportunity to leverage a team partnership with one of the most iconic and innovative teams in NASCAR to help introduce 3CHI's vast array of products to a passionate and dedicated fan base.”

Videos

1. ASX Top 6 Cannabis Shares (Pot Stocks)
(Finer Market Points)
2. Cannabis Stocks going Sky High | Stock Market
(Meet Kevin)
3. Top Cannabis Stocks 2022 | AMC-like Growth Potential in Pot Stocks!!
(Invest with Ravi)
4. 3 TOP MARIJUANA STOCKS TO BUY & GROW IN 2022?
(TheStopHunter)
5. 7 Marijuana Stocks to Love or Leave | February's Hot Stocks Panel | VectorVest
(VectorVest)
6. 7 Best Marijuana Stocks for the Novice 420 Investor
(Inyo Dispensary)

Top Articles

Latest Posts

Article information

Author: Arielle Torp

Last Updated: 11/12/2022

Views: 5547

Rating: 4 / 5 (41 voted)

Reviews: 80% of readers found this page helpful

Author information

Name: Arielle Torp

Birthday: 1997-09-20

Address: 87313 Erdman Vista, North Dustinborough, WA 37563

Phone: +97216742823598

Job: Central Technology Officer

Hobby: Taekwondo, Macrame, Foreign language learning, Kite flying, Cooking, Skiing, Computer programming

Introduction: My name is Arielle Torp, I am a comfortable, kind, zealous, lovely, jolly, colorful, adventurous person who loves writing and wants to share my knowledge and understanding with you.