For many investors, the experimental psychedelics industry may be too risky to invest in. Most companies in this sector are privately held, and psychedelic stocks are often volatile penny or OTC stocks.
Aside from being risky, these stocks can also be difficult to purchase. Most stocks will require you to have a brokerage account that offers access to OTC and international stocks, like Interactive Brokers or TradeStation.
For investors willing to take the risk, the best psychedelic stocks depend on your portfolio and investment goals — while volatility can be ideal for day traders, long-term investors will want to look to stocks with steadier gains over time.
6 psychedelic stocks to watch
We round up a selection of stocks in or related to the experimental drug industry:
- COMPASS Pathways( CMPS)
- Mind Medicine MindMed( MMEDF)
- Numinus Wellness( NUMI)
- Mindset Pharma( MSET)
- Cybin( CLXPF)
- Field Trip Health( FTRP)
3 tools to help identify new investments
We compiled a list of psychedelic stocks to keep an eye on, but the stock market is volatile, and trends can change daily.
If you’re actively trading stocks, staying on top of new industry trends and rising stocks can take a lot of time. Here are some tools to keep up with trends and get new trading ideas.
- Stock screeners. You can use an online stock screener like Finviz or TradingView to see what stocks are making the biggest moves today and narrow your search by industry and market cap. Screeners are most beneficial for technical traders who have set criteria in mind for their trades. For example, if you’re looking for stocks trending today in the experimental drug industry, you can pull a list of all mid-cap and large-cap stocks for that industry and sort by percent change since opening.
- Newsletters. Newsletters can be a great way to find companies that may be worth investing in for the long haul. Some include the Motley Fool Stock Advisor and the Alpha Boost and Cherry Picks newsletters published by Tastyworks.
- Social media. While noone is advising you make a trade based on a Reddit thread alone, social platforms like Reddit, Twitter and Tiktok can be useful tools for staying on top of the companies people are talking about. The trendiness of a stock can directly influence its price — but those trends can also be volatile. While social media can occasionally help buy-and-hold investors, it tends to be a more practical tool for active traders.
Take a deeper dive into psychedelic stocks
If you’re interested in investing in the experimental drug industry, take a closer look at what companies in this industry do and how the stocks have historically performed. Keep in mind that positive past performance doesn’t guarantee that a stock will continue to rise in the future.
1. COMPASS Pathways (CMPS)
COMPASS Pathways plc operates as a mental health care company primarily in the United Kingdom and the United States. It develops COMP360, a psilocybin therapy that has completed Phase IIb clinical trials for the treatment of treatment-resistant depression; and is in Phase II clinical trials for the treatment of post-traumatic stress disorder. The company was formerly known as COMPASS Rx Limited and changed its name to COMPASS Pathways plc in August 2020.
COMPASS Pathways stock opened the day at US$8.20 after a previous close of US$7.36. COMPASS Pathways is listed on the NASDAQ and employs 116 staff.
- Market capitalisation: US$0.34 billion
2. Mind Medicine MindMed (MMEDF)
Mind Medicine (MindMed) Inc. , a psychedelic medicine biotech company, discovers, develops and deploys psychedelic inspired medicines and therapies to address addiction and mental illness. The company is assembling a compelling drug development pipeline of innovative treatments based on psychedelic substances.
Mind Medicine MindMed stock opened the day at US$1.08 after a previous close of US$1.07. Mind Medicine MindMed is listed on the OTCQB and employs 22 staff.
- Market capitalisation: US$23.35 million
3. Numinus Wellness (NUMI)
Numinus Wellness Inc. provides solutions to develop and deliver psychedelic-assisted psychotherapy and transform the mental health landscape. The company operates in two divisions, Salvation Botanicals and Numinus Health.
Numinus Wellness stock opened the day at CAD$0.39 after a previous close of CAD$0.39. Numinus Wellness is listed on the V and has a trailing 12-month revenue of around CAD$1.5 million. All prices are listed in Canadian dollars.
- Market capitalisation: CAD$80.68 million
4. Mindset Pharma (MSET)
Mindset Pharma Inc. operates as a neuro-pharmaceutical drug discovery and development platform company. It offers psychedelic compounds for treatment-resistant neurological and psychiatric disorders.
Mindset Pharma stock opened the day at CAD$0.34 after a previous close of CAD$0.40. Mindset Pharma is listed on the CN. All prices are listed in Canadian dollars.
- Market capitalisation: $28.02 million
5. Cybin (CLXPF)
Cybin Inc. , a biotechnology company, focuses on developing psychedelic therapeutics to treat various psychiatric and neurological conditions. The company operates through two segments, Serenity Life and Cybin U. S.
Cybin stock opened the day at US$0.92 after a previous close of US$0.92. Cybin is listed on the OTCQB, has a trailing 12-month revenue of around US$864,000 and employs 38 staff.
- Market capitalisation: US$43.45 million
6. Field Trip Health (FTRP)
Field Trip Health Ltd. engages in the development and delivery of psychedelic therapies. Its Research division is involved in the development of psychedelic molecules and conducting research on plant-based psychedelics.
Field Trip Health stock opened the day at CAD$1.00 after a previous close of CAD$1.08. Field Trip Health is listed on the CN and has a trailing 12-month revenue of around CAD$435,460. All prices are listed in Canadian dollars.
- Market capitalisation: CAD$58.48 million
How to buy psychedelic stocks
Sign up with an online broker or platform to invest in one or more of these psychedelic stocks.
- Compare share trading platforms.Use our comparison table to narrow down top brokers by fees.
- Open and fund your brokerage account.You’ll need personal and financial details, like your contact and bank information.
- Search for the stock you’re interested in.Find the stock by name or ticker symbol, like CMPS or MMEDF.
- Decide on how many to buy.Some brokers will allow you to purchase fractional shares, while others require you to purchase whole shares.
- Choose an order type.Invest in the psychedelic stocks now with a market order or use a limit order to delay your purchase until the stock reaches your desired price.
- Buy the stock.Tap or click theBuybutton on your brokerage account. Once you’ve invested in the experimental drug industry, track how your stock performs to decide when it’s time to sell.
Compare trading platforms
Compare online trading platforms by fees and asset types to find the best for your investment in psychedelic stocks.
Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89 % of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
While it’s possible to turn a profit investing in psychedelic stocks, keep in mind that – like any investment – psychedelic stocks are not immune to risk. These stocks are subject to fluctuating conditions – both in the market and in the experimental drug industry, so carefully vet your picks before you invest. And if you’re new to investing, or if it’s been a while since you’ve taken a critical look at your investing accounts, compare brokers to make sure you’re getting the best features in your trading account.
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