Top Cannabis Stocks to Watch in the U.S. and Canada
Cannabis is currently legal for recreational use in 24 states and Washington D.C. Plus, 14 more states have regulated medical markets. Together these markets have nearly 15,000 cannabis dispensaries. The size of the American cannabis market is expected to surpass $40 billion in 2025. All of this means that cannabis is a hot exciting realm where investors can set their eyes on various opportunities. Even if you’re not yet an investor, it’s good to watch the cannabis stocks featured below and follow how they perform in the coming period.
Cannabis stocks include various sectors of the market, such as retail, cultivation, biotech, research companies, manufacture and distribution, as well as ancillary companies that support the entire sector.
The prospect of removing cannabis from Schedule I in the U.S. has of course sent waves among investors and the announcement was felt on the stock performance over the summer. The constant insecurity of what will actually happen with cannabis in the future and how it will be regulated at the federal level still keeps many investors at bay. But others remain resolute and invest in the budding sector regardless. Staying updated on the market and being able to make some smart decisions can lead to significant gains.
But let’s skip to the main part and see which are the top performing cannabis stocks worth watching in 2024 and beyond? The ones that even if you are not an investor but simply into cannabis should know about.
Top Five Cannabis Stocks to Watch in the U.S.
The top five American cannabis stocks to watch this year appear to be companies in the growing and retail sector, as well as ancillary companies without which the cannabis industry cannot make it. At least this is what one of the most reliable publishers in the finance world aims to say. Let’s take a look at the top five cannabis stocks to watch in the U.S. in 2024, according to The Motley Fool.
Green Thumb Industries
The Motley Fool has listed Green Thumb first in its best stocks selection list from July 2024. Green Thumb is one of the largest cannabis retailers in the nation. The company runs 96 dispensaries and 20 manufacturing facilities. The multi-state operator has remained profitable on a yearly basis since 2020, which is a rare achievement these days. And that’s what instills a sense of security among investors to buy stocks from Green Thumb. Shares from this operator can currently be traded on over-the-counter markets in the U.S. only.
Trulieve Cannabis
If someone is bigger than Green Thumb in the U.S., it’s Trulieve Cannabis. This company is active in eight states and overall has 200 dispensaries and 16 processing facilities. Trulieve is headquartered in Florida, and in the last few years it has established a strong presence in states like Arizona and Pennsylvania as well. If Florida voters approve adult-use cannabis on the ballot this November, it could be a huge boost for Trulieve. Same as Green Thumb, shares from the Florida-based company can only be bought or sold on OTC markets in the U.S.
Innovative Industrial Properties
The name of this company probably doesn’t mean anything to you. But any serious stock investor in the cannabis sphere should take a note about it. Innovative Industrial Properties (IIP) is an ancillary business that helps cannabis companies solve cash shortage as the sector still struggles with limited access to federal banking. Here’s what IIP does: they purchase properties owned by U.S. medical cannabis companies and lease those properties back to them. It’s a cannabis-specific sale-leaseback business model that keeps a delicate money balance for those operators who struggle financially. It works both ways. Operators get access to cash, while IIP earns money from the lease agreements. It’s a stable business that may still need to pivot if traditional banking services open up to the cannabis sector. Stocks from Innovative Industrial Properties are trading on the New York Stock Exchange (NYSE).
Turning Point Brands
This company is one of the leaders in supplying smoking accessories and oral tobacco. Some of their most famous brands include Zig-Zag rolling papers and Clipper lighters. The company is making fortunes with the expanding cannabis legalization, and it’s projected to make millions as it sets in the alternative headshops and cannabis dispensaries market.
Quest Diagnostic
Last but not least, Quest Diagnostic is one of the largest providers of laboratory testing services. It’s easy to assume why such a company will find itself in top cannabis stocks to watch, right? The need for drug testing in the workplace has increased with state marijuana legalization. For many employers, Quest Diagnostic is one of the most reliable companies they can turn to for drug testing employees. Businesswise, the company also has a long track record of stable profits.
On another note, cannabis users do have some workplace protections. If you’re a user you should know your rights:
Cannabis Stocks to Watch in Canada
The Canadian market is federally legal and the situation with stocks is quite different there. Below are the top three cannabis stocks to watch in Canada, listed also by The Motley Fool. The company names might be well familiar to you already.
OrganiGram Holdings
One of the rising stars in cannabis retail from across the border, OrganiGram has made tectonic shifts with its infused edibles and soft-chew candy brands. The company keeps returning good numbers since 2022, and each new product release on the market is followed by an increase in sales. So, that’s a good sign for stock investors.
Canopy Growth
Active both in the medical and recreational segments, Canopy Growth is the largest marijuana producer in Canada. Its weed products can be found under different brand names, such as Tweed, Spectrum, CraftGrow, as well as the vaporizer Storz & Bickel. Canopy Growth stock price soared in 2019, and even though the value of its shares has plunged significantly after that, it’s a cannabis stock still worth following.
Aurora Cannabis
The Edmonton-based operator is active in 25 different countries and has eight licensed manufacturing facilities. Aurora Cannabis is present in Europe, Latin America and Australia, and investors may find even more opportunity with the company’s shares in markets overseas than in its home market. In addition, Aurora funds research in canna biotechnology and genomics. Like Canopy Growth, Aurora’s shares also used to have much greater value before the pandemic, but there’s plenty of reason why investors should watch this cannabis stock and eye opportunities with them.
All Canadian cannabis operators currently trade on the Toronto Stock Exchange or the Canadian Securities Exchange.
Also read on Soft Secrets:
- Is Investing in Cannabis Smart?
S
Stephen Andrews
