Cannabis Stocks to Watch
Investing in cannabis may be a wise decision. With recreational cannabis now legal in 24 states and Washington D.C., and medicinal cannabis legal in 14 more, this evolving corner of business is starting to take off.
Canna stocks incorporate everything from retail processes, biotech and research companies and specialists in distribution and consumption.
However, it’s important to recognise this is a budding industry that involves a Schedule 1 drug at the federal level. That does make any cannabis investment a dangerous endeavour to many. Be sure to do some thorough research before you begin investing in cannabis stocks.
Top cannabis stocks
Here is a list of the 13 best-performing cannabis stocks on the New York Stock Exchange or the NASDAQ exchange.
Ticker, Company, Performance (Year)
TPB Turning Point Brands Inc 59.13%
IIPR Innovative Industrial Properties Inc 47.85%
ACB Aurora Cannabis Inc 30.89%
EEX Emerald Holding Inc 29.07%
SMG Scotts Miracle-Gro Company 25.63%
OGI OrganiGram Holdings Inc. 20.92%
CRON Cronos Group Inc 20.86%
SNDL SNDL Inc 18.67%
VFF Village Farms International Inc 18.39%
CGC Canopy Growth Corporation 14.53%
AFCG AFC Gamma Inc 14.36%
REFI Chicago Atlantic Real Estate Finance Inc 5.88%
JAZZ Jazz Pharmaceuticals plc -20.18%
Source: Finviz. Data is current as of the market close on Aug. 30, 2024. data is provided for informative purposes only, not for trading intents.
Are Cannabis Stocks Risky
Cannabis stocks carry some extra challenges and risks over other stocks,
New industry.
Cannabis legalization exceeding medicinal purposes started in 2012. As a result, many cannabis stocks are tiny and fall into the category of penny stocks, which can be a risky area for investors, particularly newbies.
New companies are at more risk of going bust, stocks can encounter sweeping price changes and they may trade less often which makes it harder to sell them when the time arrives. There is also less publicly obtainable research for any potential investors. It is also undeniable that with cannabis still illegal on a federal level, stocks may be at the mercy of enforcement threats in the future.
Speculative bet.
Cannabis stocks should be looked at as speculative investments. As such you should never invest more money than you can afford to lose.
Scams.
The Securities and Exchange Commission has given alerts for cannabis stocks that have warned investors about possible investment fraud (unlicensed vendors, assurances of guaranteed returns, uninvited offers) and manipulation of the market, this includes any trading disturbances and phoney press releases that are designed to impact prices.
Foreign stocks.
Many cannabis stocks currently trading are U.S. and Canadian, and they’re also some of the largest. When considering these stocks, there are some added risks like there may be more restricted access to financial data, like company analysis or reports and possibly no legal route if an investment is found to be fraudulent.
Wary Financial Services Industry.
Because cannabis is still prohibited federally, many banks are dubious about entering this industry. As a consequence, some investment experts, like advisors or portfolio executives, will not recommend cannabis stocks to invest in.
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