Five years ago, the cannabis sector emerged as one of the most promising new sectors for long-term growth investors. Most hemp stock investors understand the explosive growth of the global hemp industry but remain unsure about the best hemp stocks to invest in. According to the Brightfield Group, the Hemp-derived CBD industry is likely to expand to more than $9 billion by the end of 2022.
After the Farm Bill of 2018 in the U.S., several companies have entered the space looking to capitalize on new opportunities in this exciting industry. With so many investment options, how do you know which hemp stocks are the best bet? Here’s a list of the 3 best hemp stocks for 2022.
Investing in Hemp Stocks?
Hemp is a cannabis plant with many diverse applications spanning several industries. CBD oil which is derived from hemp processing has been widely acknowledged as a potent remedy against depression, anxiety, and other mental disorders.
Per the Brightfield Group, the CBD market is set to explode in the coming years. Besides medicinal benefits, industrial hemp is also useful in the production of automobiles, furniture, textiles, and construction materials – which are all billion-dollar industries.
While the upside to the industry is evident, quarterly results of the leading hemp industry players highlight that most of them are yet to turn a profit. Concerned investors have been offloading cannabis and hemp stocks over the last 18 months. COVID-19 concerns and rising volatility in the equity markets fueled 2020 sell-offs.
Can You Trade Hemp Stocks?
Many cannabis and hemp companies continue to become publicly traded through IPO’s. Both Cannin and the Brightfield Group understand the substantial upside some hemp stocks will experience. There are currently several hemp stocks listed on the OTC and they’re easy to buy and sell using your online brokerage.
Which Cannabis & Hemp Stocks have Recent IPOs?
Here’s an updated list of new cannabis and hemp company IPO opportunities for late this year and early 2021:
|AAA Medic Montreal||SEDAR||TSX-V||Quebec ACMPR Applicant|
|Blackshire Capital||SEDAR||CSE||Invests in Private Cannabis Companies|
|Breath of Life International||SEDAR||TSX||Israeli Licensed Medical Cannabis Producer|
|Clever Leaves||SEC||NASDAQ||Global Cannabis Operator|
|CWE European Holdings||SEDAR||TSXV||German Hemp Operator|
|Eden Empire||SEDAR||CSE||North American Integrated Cannabis Operator|
|Embark Health||SEDAR||TSX-V||Canadian Extraction LP|
|EMMAC Life Sciences||SEC||NASDAQ||European Cannabis Operator|
|HempFusion Wellness||SEDAR||TSX||American CBD Production|
|Hemptown Organics||SEDAR||TSXV||CBD and CBG Production|
|HollyWeed North Cannabis||SEDAR||TSXV||Canadian LP Focused on Processing and Ancillary Solutions|
|Innovate Phytotechnologies||SEDAR||CSE||Canadian Hemp Services Provider and ACMPR Applicant|
|Lifted Innovations||SEDAR||CSE||Cannabis accessories e-commerce company in U.S. and Canada|
|Lobo Genetics||SEDAR||TSX-V||Genetics Testing for Cannabis Consumers|
|Magical Brands||SEDAR||TSX-V||DIY Extraction|
|Merced Holdings||SEDAR||CSE||California Extraction|
|Merrco Payments||SEDAR||TSX-V||Canadian Payments Processor Focused on Cannabis|
|Molecular Science||SEDAR||TSX-V||Canadian Mobile Lab for Testing and Research|
|OG DNA Genetics||SEDAR||CSE||Seeds and Genetics|
|Province Brands||SEDAR||TSX-V||Canadian Developer of Cannabis Beverages|
|RYAH||SEDAR||CSE||U.S.-Based Data Aggregation and Technology|
|Santa Marta Life Sciences||SEDAR||TSX-V||Licensed Colombian Cannabis Producer|
|Southern Sun||SEDAR||TSX-V||Canadian Company Focused on Africa|
|Starling Brands||SEDAR||CSE||California Cannabis Operator|
|Subversive Real Estate Acquisition REIT||SEDAR||NEO||American Cannabis REIT|
|The Hacienda Company||SEDAR||CSE||California Cannabis Brand Owner|
|Theracann International Benchmark||SEDAR||TSX-V||Panama-Based Provider of Technology, Operations and Analytics|
|Xebra Brands||SEDAR||TSX-V||Latin American IP and Cultivation|
But what are the 3 best hemp stocks for 2022?
With multiple hemp-products in its arsenal, Tilray (NASDAQ: TLRY) is one of the most notable cannabis stocks which will make a mark in 2022 and beyond. After debuting in the U.S. markets at $17 per share, the company was quick enough to shoot past $300 per share, before plummeting to its record low of $2.43 in early 2020.
Cannabis investors have already taken note of Tilray’s growth prospects. The company has shed a lot of its gains in the past six months, thanks to COVID-19 induced market volatility and the company’s mounting losses. However, for an industry that is still in its infancy, investors need to look at this hemp stock from a long-term perspective.
To expand its U.S. footprint, the Canadian pot producer acquired Manitoba Harvest, which supplies over 70% of the hemp edibles in the country. Its products are sold widely in about 13,500 retail shops in the U.S. including Costco and Walmart.
International expansion is a sure shot growth route for cannabis companies and Tilray stands to benefit from it. The pot stock exports its medicinal products to more than 13 international markets including Germany and Portugal and industry experts believe that this number is all set to double in the next few years. Because of this strong trajectory, we believe Tilray is one of the 3 best hemp stocks for 2022.
#2 GW Pharmaceuticals
GW Pharma (NASDAQ: GWPH) is a biotech player and not a core cannabis company but it finds a mention in this list because of its flagship medicine, Epidiolex, which is derived from CBD. This medicine has had huge success in the treatment of epileptic seizures due to two rare syndromes in early childhood.
Epidolex has been well-received by the patients and the pharmaceutical industry. Epidiolex is the single-most factor driving the growth of GW Pharmaceuticals. The company is still unprofitable but one with immense growth potential.
Related: Top 3 Hemp Stocks to Watch in 2021
GW Pharma has a robust balance sheet with a cash balance of more than $500 million. This depicts its inherent strength in being unperturbed in the face of the pandemic. It also highlights that the company has adequate finance to fuel further R&D and its growth opportunities.
The COVID-19 crisis did not have a significant impact on most of the medical marijuana companies, because they were deemed as an essential service. The unique proposition of GW Pharma is its affordable drugs and limited competition in this segment. With more treatments and clinical trials underway, GW Pharmaceuticals is surely a smart stock pick in the medical cannabis category and we believe it’s one of the 3 best hemp stocks to buy in 2022.
#3 Canopy Growth Corporation
If you’re evaluating production capacity, Canopy Growth (NYSE: CGC) is arguably the largest cannabis companies on earth. As the regulatory landscape in the hemp industry becomes more conducive to hemp businesses, the pot producer will benefit immensely with its CBD supplements and infusions.
Looking at the present scenario amid COVID-19, cannabis players with an online presence are set to have a stronger hold on the market. In December, Canopy Growth launched First & Free, a dedicated portal for its state-of-art CBD products. The offerings include the hemp stock’s premium softgel, cream formulas, and oil-drop, tincture products.
As the largest cannabis company on earth – they have quite the global presence:
Canopy Growth’s Strategic Partnerships
Driven by its sound long-term prospects in the CBD-hemp space, Canopy has formed a partnership with celebrities like Martha Stewart. This alliance will go a long way in giving the pot stock a competitive edge. Last week, Canopy launched the first line of products under the Martha Stewart-CBD brand. Hemp-derived soft-gels, CBD gummies, and oil drops under various citrus and berry flavors are some of the offerings in this category. The specialty of these products is that it is made with CBD isolate, a purer form of the compound. The company also plans to launch pet products under the Martha Stewart brand later this year.
Furthermore, Canopy’s exclusive partnership with Constellation Brands in 2017 suggests it is on track to develop CBD-infused beverages. The alcohol heavyweight raised its stake in Canopy to 38% with a CA$5 billion investment in 2018. Canopy Growth’s CEO, David Klein, indicated that it plans to double the cannabis beverage production in August.
What’s On the Horizon for Canopy Growth?
2020 has been rocky for Canopy Growth stock in terms of performance. It plunged significantly in March, but it has seen a gradual rebound since then. In the last six months, the stock has surged nearly 70%. The company is yet to be profitable, but that is a common concern across the industry. In terms of growth prospects, Canopy looks extremely promising owing to its line of uniquely-researched CBD products and strength in the online sales model.
3 Best Hemp Stocks for 2022
Cannin Investment Group: Your Hemp Stocks Experts
Cannin.com is your trusted resource for top hemp stocks. Our team of financial experts evaluates all emerging hemp stock investing opportunities. We aggregate hundreds of hours of market research to provide tips on the best hemp stocks for 2022.
Use Cannin as your resource for:
Is it too late to invest in hemp stocks? No! This is the perfect time to invest.
Wall Street analysts expect the global cannabis industry will have an annual value exceeding $75 Billion in the next decade. The time to invest in hemp stocks is now.
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