The incredible healing properties of psychedelics are being discovered with every passing day. Their potential is massive and can flip the script for those struggling with mental health disorders. Moreover, the market opportunity is huge, which makes it imperative for investors to wager on the best psychedelic stocks.

According to research firm factmr.com, the global psychedelic drugs market was valued at an incredible $487.5 million last year. Moreover, experts expect the market to grow at a healthy at 7.8% growth rate through 2031. Underlying this growth is the prevalence of depression as well as a growing interest in lifestyle changes promoting health.

Broadly, scientists now know that psychedelics can help treat anxiety, depression, addiction and other mental health conditions. Investors are therefore keen on psychedelics as alternatives to traditional pharmaceutical treatments — or as a complementary approach.

With this in mind, here are three of the best psychedelic stocks moving the needle for the industry.

Best Psychedelic Stocks to Buy: MindMed (MNMD)

MindMed (NASDAQ:MNMD) is developing drugs covering anxiety, depression and addiction. These markets are highly lucrative and will likely grow exponentially over the next several years. According to ResearchAndMarkets, the sector could potentially be worth over $10.7 billion by 2027, growing at an annual rate of 12.4%. Multiple analysts believe that the sector right now is similar to the early stages of the cannabis industry.

So where does MindMed come in? The company is in its early stages of developing drugs that could potentially make waves. It has an impressive patent portfolio which includes 26 pending U.S. patent applications. Its lead candidate is MM-120, a formulation of LSD that has considerably improved safety and efficacy in recent results.

Investing in a pre-revenue company comes with a ton of risk, but with MNMD, it’s not without healthy upside.

Cybin (CYBN)

Cybin (NYSEMKT:CYBN) is another speculative psychedelics player that could potentially blow up in the coming years.

The company went public through a reverse merger with Clarmin Explorations in 2020 and started trading on the NYSE American Exchange later. Cybin is developing mental illness treatments through psychedelics such as psilocybin. It plans to become a leader in the space, and it could potentially shape into a brilliant long-term investment. Its CYB003 will enter into the Phase 1/2 clinical trial phase in effectively treating depression. Cybin is also investigating this candidate for alcohol use disorder.

An element that sets Cybin apart is its drug delivery system. This includes under-the-tongue dissolving films and inhaler systems. Moreover, it has also invested in neuroimaging techniques that effectively generate data about the behavior of a patient’s brain pre- and post-treatment with psychedelics. The information will allow the company to optimize treatment protocols or the makeup of its drug candidates.

Best Psychedelic Stocks to Buy: Compass Pathways (CMPS)

Compass Pathways (NASDAQ:CMPS) is involved in developing a psilocybin-based therapy, COMP360, for treatment-resistant depression. It conducted the largest study in the history of psilocybin therapy, evaluating COMP360 in TRD. It will be looking to advance its lead candidate into late-stage testing.

The company remains well-funded, reporting a healthy $243.7 million in its cash by the close of the first quarter of 2022. Hence, there is little danger to investors concerning dilution through at-the-market fundraising. Moreover, its Phase 2b trial demonstrated a marked clinical reduction in depressive symptoms after the three-week evaluation period.

TRD affects close to 100 million patients across the globe and a few million in the U.S. With the ineffective standard of care currently, COMP360 could position itself as a major player down the line.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.