Cannabis Legalization
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11 Best Pot Stocks to Buy According to Hedge Funds
Insider Monkey· 2026-02-28 15:21
Industry Overview - The global cannabis industry is experiencing a structural transformation due to expanding legalization for both medical and adult use across various regions, with projections suggesting the market could approach $100 billion by 2026 and potentially exceed $400 billion by 2030 [2][4]. - Growth drivers include expanding legalization, rising medical adoption, and the development of ancillary services, with industrial hemp contributing to the sector's addressable market [3][5]. - A proposed reclassification of marijuana by the Drug Enforcement Administration from Schedule I to Schedule III could significantly enhance industry fundamentals by easing tax burdens and improving access to banking services [6][3]. Investment Landscape - Investing in cannabis stocks is viewed as a long-term bet on the normalization of a previously illicit industry transitioning into a regulated market, with the potential for high returns [4][5]. - The sector offers diverse investment pathways, including multi-state operators, ancillary service providers, biotech firms, and diversified ETFs, with many cannabis equities currently at attractive valuation levels following a downturn [7][8]. - Notable risks include high volatility, regulatory uncertainty, and competition from illicit markets, necessitating careful stock selection and a long-term investment horizon [8]. Company Highlights Aurora Cannabis Inc. (NASDAQ: ACB) - Aurora Cannabis is recognized as a leading medical cannabis operator in Canada, with a strategic pivot towards a medical-first model enabling expansion into higher-margin international markets [12][13]. - The company reported Q3 fiscal 2026 results, forecasting global medical cannabis net revenue growth of 10%-15% to $269-$281 million, with medical revenue constituting approximately 81% of total net revenue [13][14]. - Aurora has filed an at-the-market program for up to $100 million to fund initiatives such as cultivation expansion and M&A, closing the quarter with $154 million in cash and no cannabis-related debt [14][15]. Organigram Global Inc. (NASDAQ: OGI) - Organigram has received a price target increase to C$4 from C$3, maintaining a Buy rating, following a subscription agreement with British American Tobacco for a capital infusion of approximately C$65.2 million [16][17]. - The company is expanding its international portfolio with the launch of new medical cannabis products in Australia, reflecting a broadened product mix and deeper market penetration [18][19]. - Organigram is focused on innovation and international expansion, with 7 hedge funds holding stakes in the company as of Q3 2025, positioning it among the best pot stocks to buy according to hedge funds [19].
X @Bloomberg
Bloomberg· 2026-02-07 06:04
Germany decriminalized cannabis sales two years ago, and now politicians are clashing over how best to legislate what some view as an out-of-control online marketplace. https://t.co/WkaXczqmSg ...