If you’re looking to invest in the CBD market, it’s essential to understand the trends and outlook for the industry. The CBD industry has seen rapid growth over the last few years, and experts see this trend continuing in 2022. The U.S. market alone is expected to reach $70 billion in sales by 2028. Here are the top five stocks to add to your portfolio in 2022.
Jazz Pharmaceuticals
With a market cap of over $11 billion, Jazz is well-positioned to capitalize on the growing dry herb market. The pharmaceutical firm has been growing fast since acquiring the biotech giant G.W. Pharmaceuticals in the spring of 2021. The company’s drug Epidiolex is the first CBD-derived medication approved by the FDA in the U.S. and throughout dozens of countries worldwide. G.W. Pharmaceuticals also has patents on dozens of other CBD-derived formulas to treat a wide range of medical conditions. Many are banking on these new drugs to change the industry over the next few years.
Canopy Growth
Over the last half-decade, Canopy Growth has become a multi-faceted company through strong investments in brand, market, and product-based intellectual property. In 2018, Canopy raised eyebrows with its purchase of the world-renowned dry herb vaporizer brand, Storz & Bickel. This purchase is particularly raised eyebrows as Cara Robinson from UK-based Vape Elevate explains: “Storz & Bickel are widely recognized as the global leader in vaporizer design; their devices are the only consumer-facing brands that are officially recognized as medical devices.’
As a result of their history of unique investments, many expect Canopy to be a dominant global business for years to come.
Scotts Miracle-Gro
Most people don’t know about Scotts subsidiary Hawthorne Gardening, a billion company that’s the world’s largest producer of cannabidiol-derived hydroponics, fertilizers, soils, and other growing products. Hawthorne has been expanding for years, with acquisitions in California and across the country. Hawthorne is working to improve cannabidiol cultivation performance by delivering nutrients and other formulation developments.
Green Thumb Industries Inc
One of the biggest players in the CBD industry, Green Thumb Industries Inc, offers a wide variety of CBD products and brands and has nearly $240m in quarterly sales. The stock is expected to grow significantly in 2022 as New York, New Jersey, Virginia, and other states start legal cannabis sales. Industry researchers predict Green Thumb Industries Inc will see a nice amount of the $42 billion in recreational sales the U.S. expects by 2026.
Cronos Group Inc.
The Canadian company Cronos Group is one of the leading cannabis growers, focusing on innovation. The company is now branching out internationally, supplying markets across the globe. With a market cap of over $1.5 billion, Cronos is a prime candidate for growth in 2022 and beyond.
Aurora
Another top Canadian cannabis company, Aurora, is well known for its production of medical cannabidiol. The company is vertically integrated, with operations in over 20 countries. Aurora is also one of the few producers with a positive cash flow. The company has a market cap of over $1.1 billion and is one of the top contenders of all ‘green’ investments.
Trulieve
One of the leading cultivators and distributors of medical cannabidiol in Florida, Trulieve, is a consistently powerful performer. The firm has a market capitalization of more than $5.5 billion, indicating substantial expansion and good positioning for development in 2022.
Investing in the CBD market is a lucrative prospect, but it’s essential to consider how this industry will evolve. As legalization spreads across more states and jurisdictions globally, investing in companies like Jazz Pharmaceuticals Inc., Scotts Miracle-Gro Co., Green Thumb Industries Inc., Cronos Group Inc., Aurora Ltd., Trulieve Corp, could be one way to get ahead of these trends.