3 Best Psychedelic Stocks To Buy

Unfortunately, the prevalence of mental illness is increasing and an increasing number of patients (approximately 30 percent) don't respond to conventional treatments. The need for non-conventional treatments is contributing to increased interest in the US in psychedelics that can better manage mental illness. Researchers are conducting studies to evaluate the efficiency and safety of psychedelics, giving these options validity as potential treatments.

All of this indicates that psychedelic stocks are positioned for growth and increases in their earnings. Check out a few stocks that you should explore adding to your portfolio.

1. Compass Pathways PLC (CMPS)

The founders of Compass Pathways PLC (CMPS) are survivors of mental illness; they know that conventional treatments aren't always effective. This company is currently working to develop psilocybin therapy for patients with depression that's resistant to conventional treatments. Multiple studies have indicated that psilocybin (a substance found in magic mushrooms) is an effective treatment for depression. Some research even suggests that psilocybin is the most effective treatment for depression.

Compass Pathways is currently working to obtain FDA approval for its psilocybin therapy. Once this approval is granted, the company will receive 5-7 years of exclusivity for the treatment. This means that this psychedelic growth is poised to grow and increase its revenue. Multiple stock analysts suggest that this stock is favorably priced with a promising future.

2. Seelos Therapeutics Inc. (SEEL)

Seelos Therapeutics Inc. (SEEL) prides itself on using nonconventional treatments, like psychedelics, to treat rare conditions and neurological disorders. The company is currently developing multiple psychedelic therapies for a number of conditions, including major depressive disorder and Parkinson's disease.

SEEL stock is forecasted to increase in value over the next year as more of its treatments are approved for widespread usage. Many stock analysts give it a buy or hold rating.

3. Charlottes Web Holdings Inc (CWEB)

Charlottes Web Holdings Inc (CWEB) develops CBD-based products. The company experienced an increase in first-quarter revenue in 2021. As more people embrace CBD products, this will drive the company's growth.

An exclusive partnership with Life Time, a health-focused lifestyle brand, will also generate additional revenue and growth. This partnership is expected to dramatically expand the availability of Charlottes Web's products, as the products will now be available at athletic events and resorts.