With the marijuana industry expected to double by 2025, wise investors are seeking to benefit and grow their money in the light of this new financial green rush. As entire countries continue to soften the restrictions on cannabis, growing opportunities for entrepreneurs and existing companies arise within the marijuana stock market.
Viridian Capital Advisors is one of the world’s top strategic advisory firms in the cannabis industry – and we look up to them for inside information and predictions. While Viridian does not recommend individual companies, the Viridian Cannabis Stock Index itself does track a few noteworthy companies – which are listed in this list of the best marijuana stocks.
Likewise, Marijuana Stocks Motley Fool reveals noteworthy insights regarding the best marijuana stocks 2021. In this article, we have summarized our top 8 picks for the best cannabis stocks and top marijuana ETFs to invest in in 2023 – including marijuana stocks under $5, better known as cannabis penny stocks.
Top 8 Best Marijuana Stocks for 2021 (updated 2023)
Innovative Industrial Properties (NYSE: IIPR)
Innovative Industrial Properties, by nature, is a real estate investment trust (REIT), albeit with a love for investing in cannabis-oriented greenhouses and industrial facilities. Focused on serving the medical cannabis industry and founded in 2016, it now boasts 68 properties, with 5.8 million rentable square feet, boasting an occupancy rate of almost 100%.
All of the above, combined with an expanded portfolio of properties located across 17 states, IIPR is a popular stock providing limitless potential for investors. For the past two years, IIPR has consistently been awarded the title of one of the best marijuana stocks to invest in, delivering an annualized total return of a generous 80.2%, from 2018 up to the present day.
Jazz Pharmaceuticals (Nasdaq: JAZZ)
Jazz Pharmaceuticals acquired the biotech company GW Pharmaceuticals in May 2021. GW’s spotlight drug Epidiolex is the first cannabis-based medicine to be approved by the U.S. Food and Drug Administration. This new drug effectively treats two rare forms of childhood epilepsy, and evidently, Jazz Pharmaceuticals thanks to GW Pharmaceuticals is generating abundant sales.
Tew patients for Epidiolex slowed slightly with the COVID-19 pandemic, nevertheless, the company has continued to deliver strong revenue growth. Recently, the FDA also approved Epidiolex to treat tuberous sclerosis complex (TSC), which is a rare organ disease.
This admittance opens up a whole new market, since around 1 million people worldwide have been diagnosed with this disease. We see the value of these stocks rising for the long term for all these reasons.
Trulieve Cannabis (OTC:TCNNF)
Trulieve Cannabis is a cannabis grower and retailer with a primary focus on the Florida medical marijuana market. Dominating the Sunshine State by accounting for nearly 50% of total cannabis sales, Trulieve has been consistently profitable ever since 2017 – an achievement few other rival companies can claim.
Trulieve Cannabis sales and earnings also continue to soar. And in the light of new success, Trulieve plans to acquire Harvest Health & Recreation in a deal that will further boost its presence in across the states and become one of the most profitable multi-state marijuana businesses in the country. Trulieve stock prices are sure to provide golden opportunities.
Cresco Labs (OTC: CRLBF)
Cresco Labs is a consumer-oriented cannabis company that grows, manufactures, and distributes legal cannabis. Operating in ten states, Cresco Labs now owns several production facilities and dispensaries, and holds 44 retail licenses altogether. Its cannabis brands are situated in Cresco, Reserve, Remedi, High Supply, and Wonder Wellness Co.
On June 9, Cresco Labs announced an expansion of its Good News brand, which has only spelled good things for them – as well as investors. Cresco is now launching its Counting Sheep, Day Off, and Pride products in edible and vape forms throughout California, Illinois, and Michigan. You’ll want to keep an eye on these cannabis stocks, for sure.
Hydrofarm Holdings Group, Inc. (Nasdaq: HYFM)
Hydrofarm Holdings Group, Inc. is another noteworthy manufacturer and distributor of controlled environment agricultural equipment and supplies – with active branches in the US and Canada. The company also sells additives that can be used to grow, farm, and cultivate fine cannabis. It ranks 5th on our list of the best marijuana stocks to invest in for some good reasons.
Recently, Hydrofarm Holdings Group, Inc. announced its acquisition of Aurora Innovations in a whopping $161 million deal. This stock has moreover acquired House & Garden in May, leading to another 4% surge in value. With a revenue of $111.39 million and a gross profit margin of 19.47%, this stock has gained 1.44% in the past 6 months and year to date – and things are looking up continuously.
Grow Generation Corp. (Nasdaq: GRWG)
Grow Generation Corp owns several profitable retail hydroponic and organic gardening stores. The company’s line of products includes horticultural, organics, lighting, and hydroponic items. It ranks 6th on our list of the best marijuana stocks to invest in, now in the light of its new expansion into the Californian market after it acquired the Harvest Company.
The stock has gained 13% in light of three consecutive upgrades in May, from Ladenburg Thalmann, Alliance Global, and Roth Capital, respectively. Overall; the stock has gained 22.28% in the past 6 months and year to date – which is an indicator of good things to come.
Tilray, Inc. (Nasdaq: TLRY)
Tilray, Inc. is a cannabis-oriented pharmaceutical company with branches in Canada and the US. The company is intimately involved with the cannabis market and ranks competitively on our list of the best marijuana stocks to invest in. Bank of America analyst Heather Balsky is particularly optimistic about Tilray, Inc. in the light of the company’s move to add an estimated $4.5 billion in preparation for the legalization of cannabis in the whole of the US.
This June, the company also announced a new product collaboration with Broken Coast Cannabis Ltd., which operates under Tilray, Inc. This marks Tilray’s first cannabis brand introduction in the US – which spells good things. The stock has gained 99.06% in the past 6 months and year to date, and we foresee things will only get better for this company.
High Tide Inc. (HITI.V)
High Tide is a Canada-based cannabis retailer that operates a most successful cannabis retail chain that provides global distribution of smoking accessories, and an accessories e-commerce platform along with that. It hosts a list of outstanding brands including Canna Cabana, KushBar, NewLeaf, META Cannabis, Grasscity, and Smoke Cartel.
Recently, the company announced its acquisition of U.S.-based online marijuana accessories retailer Daily High Club. With a cash-and-stock position valued at $10 million, the acquisition is expected to boost High Tide's U.S. e-commerce presence – and hence its stock prices will similarly soar to new heights.
Best Marijuana Stocks 2023 ETFs
When it comes to the top marijuana ETFs, we’ve got you covered. By definition, Marijuana exchange-traded funds can provide you with great exposure to equities of companies that occupy their space and time with the cultivation, distribution, and sale of marijuana products. Products of marijuana companies encompass dried flowers, oils, seeds, edibles, etc.
Marijuana is gaining wider acceptance for both medicinal and recreational purposes, and support for continued legalization is growing. Hence, Marijuana ETFs offer a straightforward way for investors to gain exposure to a diversified bucket of marijuana equities and the opportunity to profit from this growing industry.
It is the contention of this article on the best marijuana stocks 2021 that the following are some of the best marijuana ETFs for quarters 3 & 4 of 2021:
Put your money where our mouth is, and you’ll hardly regret it. We’ve listed the most appealing cannabis stocks in this article in addition to the best marijuana stocks ETFs, and in the following section, we reveal the best marijuana penny stocks 2021.
Best Marijuana Penny Stocks 2023
With all the above said, if you’re looking to start small and make big bucks, marijuana penny stocks might be your next great financial venture. These are the marijuana penny stocks that are most recommended to spend those $5 on:
- Greenland Holdings
- Tilt Holdings Inc.
- Harborside Inc.
As cannabis stocks and ETFs have become more prominent on the world markets in recent years, it is not surprising that investors are looking for the best performing cannabis stocks and ETFs for 2023. No matter whether an investor is looking to diversify their portfolio or add a bit of excitement to their stock purchases, there are a number of great cannabis-related investments to consider this year.
For starters, some investors may want to start by assessing the top performing marijuana stocks so far in 2023. This can provide valuable insight into which companies are currently doing well, as well as potential opportunities for success in the near future. It's important to note that many of these stocks may be volatile and involve risk, so investors should exercise caution when making decisions about which ones they should purchase.
In addition to individual stocks, marijuana-focused ETFs are also growing in popularity among investors. These baskets of shares can offer exposure to multiple cannabis companies at one time, thus reducing the risk associated with buying individual stocks.
The Horizons Marijuana Life Sciences Index ETF (HMMJ), for example, focuses on North American-listed firms involved in cultivation, production and distribution of cannabis products. Similarly, The Cannabis ETF (THCX) provides exposure to U.S.-based companies spanning different areas such as cultivation & retail operations, pharmaceuticals & biotechnology and hemp & related products & services industries.
Another option for investors wanting exposure to marijuana-related assets is through investment funds or venture capital opportunities that specialize in cannabis investments. One such example is the Arcview Group – a network of accredited investors focused on investing in early-stage companies dedicated to advancing the legal cannabis industry worldwide. Alternatively, certain publicly traded REITs like Innovative Industrial Properties (IIPR) exist purely for investing in industrial properties leased out primarily for use by operators within the medical and adult-use cannabis industry.
Compared with other asset classes such as traditional equities or fixed income securities, investing in marijuana related assets comes with its own unique set of risks– including regulatory risk due to changing government regulations regarding drug laws around the world. Therefore it is important for any investor considering making a purchase of these types of securities do their research thoroughly before committing funds – ensuring they understand what they’re getting into before making any final decisions about their investments!
Best Cannabis Stocks of All Time
The marijuana industry has seen extraordinary growth and success in the past few years. With the legalization of recreational and medicinal cannabis in many states across the country, investors have been eager to get in on the ground floor with some of the best performing weed stocks available.
Cannabis companies such as Canopy Growth Corporation, Aurora Cannabis Inc., and Cronos Group Inc. have all been among the top performers in terms of stock performance.
Canopy Growth is up nearly 400% over the past year, while Aurora Cannabis has gained more than 200%. Cronos Group is up around 150%. All three stocks have also seen an increase in trading volume due to investor enthusiasm for these companies, which gives them a boost when it comes to their market performance.
Additionally, certain cannabis-related companies that aren’t necessarily producing cannabis themselves have invested heavily into this burgeoning industry and have also seen strong returns from their efforts. Innovative Industrial Properties Inc., a real estate investment trust (REIT) specializing in cannabis-related properties, has had a great run since its IPO in early 2017 and is currently up close to 400%. Scotts Miracle-Gro Co., which produces fertilizer specifically designed for growing marijuana plants, has also enjoyed success with its stock seeing gains of close to 300% since early 2017.
Other notable marijuana stocks include Tilray Inc., Hexo Corp., GW Pharmaceuticals Plc., and Aphria Inc. All these companies are actively involved in different aspects of the cannabis industry and are looking to capitalize on its potential as an investment opportunity. Tilray recently became the first Canadian marijuana company listed on a U.S exchange back in 2018 and has enjoyed strong gains ever since then with share prices increasing more than 600%. Hexo Corp., another Canadian company that sells various products including oils and edibles, is up nearly 500% since it went public last year.
GW Pharmaceuticals Plc., meanwhile, is focused on developing treatments using cannabinoids derived from hemp plants and is currently up around 250%. Aphria Inc., one of Canada’s largest producers of medical cannabis products boasts an impressive 400% gain over just two years time since going public back in 2016.
All these top performing weed stocks clearly demonstrate just how profitable investing into this sector could be for those who know how to properly assess risk versus reward when it comes to investing into this highly volatile industry.
Despite short term fluctuations in prices due to politics or market sentiment, long term investors can rest assured that there may be substantial rewards yet to come as more states continue legalizing cannabis use either recreationally or medicinally across America.
Final Thoughts on Investing in Cannabis Stocks
Cannabis has managed to establish itself within an established industry – with realistic expectations, too. As lush growth becomes secondary to profitability and positive balance sheets, many companies present huge opportunities for investors with all kinds of green aspirations.
And even in the looming shadows of the COVID-19 pandemic, the cannabis industry showed that it’s here to stay. Facing social isolation measures, most jurisdictions with legal or medical programs declared cannabis an essential product during the pandemic and beyond, motivating a number of analysts to grant the industry title that rings “recession-proof”!