Marijuana Stocks: 10 Top Stocks in the Cannabis Industry

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The legal marijuana industry is poised to take off in the next few years. Here’s what investors need to know about the budding pot stocks market.  

Marijuana stocks have attracted the attention of investors over the past few years as countries like Canada and the United States have become more open to cannabis legalization. 

Even though the United States is behind some markets like Europe when it comes to legalization, the momentum is shifting. Already 17 states and Washington, D.C. have legalized recreational marijuana usage.

As the United States becomes more open to cannabis, the number of investment opportunities in both recreational and medical marijuana has created a massive market that’s estimated to grow 550% over the next 10 years in the United States alone. 

There are still plenty of hurdles for cannabis producers to overcome and the cannabis industry is anything but a guaranteed win for investors. But Wall Street has been warming to the cannabis industry and as regulations ease in the coming years, this market could go sky high.

Let’s take a look at ten marijuana stocks that are knee-deep in cannabis and will benefit as this market buds into a full-grown industry. 

10 Cannabis Stocks to Invest in 

  1. Constellation Brands 
  2. Tilray 
  3. GrowGeneration 
  4. Innovative Industrial Properties 
  5. Curaleaf Holdings 
  6. Trulieve Cannabis
  7. Cresco Labs
  8. HEXO 
  9. Green Thumb Industries 
  10. Scotts Miracle-Gro

Constellation Brands (NYSE: STZ)

  • Constellation Brands (NYSE:STZ)
  • Price: $236.37 (as of close Jun 14, 2021)
  • Market Cap: 45,747,706,462
  • Dividend Yield: 1.29%

Investors may recognize Constellation Brands as the maker of the Modelo and Corona beer brands. So why exactly is an alcohol producer on this list? Because the company has invested more than $5 billion in the cannabis holding company Canopy Growth (CGC) and now has a nearly 40% stake in the company.

And if Constellation Brands exercises some of the warrants it currently holds in Canopy Growth over the next few years, it could take control of up to 50% of the company.

Canopy Growth has its hands in all kinds of cannabis and cannabidiol (CBD) and tetrahydrocannabinol (THC) beverages, vaping pens, and edibles. The company makes most of its revenue from the recreational side of the cannabis industry, but makes money from the medical side as well.

As a major beer, wine, and spirits company, Constellation knows how to navigate an industry rife with laws and restrictions, which gives the company the perfect experience to help Canopy navigate its future—which includes reaching profitability on an adjusted EBITDA basis by mid-2022. 

Tilray (NASDAQ: TLRY)

  • Tilray, Inc. (NASDAQ:TLRY)
  • Price: $19.16 (as of close Jun 14, 2021)
  • Market Cap: 8,571,634,299
  • Dividend Yield: 0.00%

One of the largest Canadian cannabis producers just became even bigger. Aphria recently closed on its deal to acquire Tilray, creating a massive cannabis giant leading the marijuana industry. It’s now the self-proclaimed “world’s largest cannabis company.” 

Tilray has a long list of cannabis products, including medical, adult-use, hemp foods, and beverages. The company is a market leader in Canada, has a strong presence in Europe, and has called the United States its “next big prize.” 

Some investors may have noticed Tilray’s stock has been volatile in 2021, following some disappointing quarterly results. But that hasn’t hurt the company over the long term. 

Its share price is up more than 1,000% over the past five years. And with its recent merger, the company’s prospects have never been brighter.

GrowGeneration (NASDAQ: GRWG)

  • GrowGeneration Corp (NASDAQ:GRWG)
  • Price: $42.71 (as of close Jun 14, 2021)
  • Market Cap: 2,512,662,314
  • Dividend Yield: 0.00%

GrowGeneration is carving out a niche in the cannabis industry as one of the best locations to buy supplies for growing marijuana. 

The company sells everything from plant lighting to hydroponics (which uses liquid nutrients instead of soil for growing) and in 2020 the company’s sales soared. Total revenue spiked 143% year-over-year, e-commerce sales jumped 123%, and GrowGeneneration’s adjusted EBITDA skyrocketed 264%. 

But the company is looking beyond 2020’s banner year to even more growth. GrowGeneration is looking to expand its footprint beyond its 52 stores across the United States and nearly double its retail locations over the next two years. 

The company may not be a household name, but that hasn’t hurt GrowGeneration’s share price growth one bit. The company’s stock has soared more than 650% over the past three years, even after a significant sell-off in the broader marijuana stocks sector at the beginning of 2021. 

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Innovative Industrial Properties (NYSE: IIPR)

  • Innovative Industrial Properties (NYSE:IIPR)
  • Price: $191.74 (as of close Jun 14, 2021)
  • Market Cap: 4,587,632,021
  • Dividend Yield: 2.75%

If you’re looking for a solid play in the cannabis industry that also generates income for investors, look no further than Innovative Industrial Properties (IIP).

IIP is structured as a real estate investment trust (REIT), which means the company legally has to return at least 90% of its income back to shareholders through dividends. That’s great news for investors because IIP is profitable and the company’s business is firing on all cylinders. 

The core of its business comes from buying properties from medical cannabis operators and then leasing those properties back to them. As a landlord, IIP brings in its revenue through a steady stream of rent collected through its 67 properties, 100% of which are currently leased on a “long-term basis to high-quality licensed cannabis operators.” 

Income investors will love the company’s current 3% dividend yield right now and the fact that its stock is up 400% over the past few years. This company is certainly worth a closer look if you want a company with a lot of exposure to the cannabis industry, but with the added benefit of a steady income as well. 

Curaleaf Holdings (OTC: CURLF)

  • Curaleaf Holdings, Inc. (OTC:CURLF)
  • Price: $17.64 (as of close Jun 14, 2021)
  • Market Cap: 10,211,646,492
  • Dividend Yield: 0.00%

Cannabis aficionados are likely already well acquainted with Curaleaf, which operates more than 100 dispensaries in the United States and is the world’s largest cannabis company by revenue. The company has a huge footprint in the United States, with locations in 23 states, and is tapping into both the medical and recreational marijuana markets. 

One especially important opportunity is New York State, which just recently legalized recreational marijuana use for adults and in which Curaleaf already holds more than a quarter of the medical marijuana market share. 

But the United States isn’t Curaleaf’s only marijuana opportunity. The company closed on its purchase of EMMAC Life Sciences, Europe’s largest cannabis company, in mid-2021 and now has a massive presence in the United Kingdom, Germany, Italy, Spain, and Portugal. 

To put this in perspective, Curaleaf’s management said recently that Europe’s addressable market is more than twice the size of the addressable marijuana market in the United States. As a leading marijuana company in both the United States and Europe, Curaleaf is certainly a pot stock for investors to watch. 

Trulieve Cannabis (OTC: TCNNF)

  • Trulieve Cannabis Corp. (OTC:TCNNF)
  • Price: $44.7 (as of close Jun 14, 2021)
  • Market Cap: 4,642,124,982
  • Dividend Yield: 0.00%

Florida, the Sunshine State, may just be a little brighter thanks to Trulieve Cannabis. The company was the first—and is the leading—medical marijuana company in the state with more than 83 stores. 

Why is Florida important to the cannabis industry (besides for spring break, of course)? Because it’s the third most populous state in the United States, giving Trulieve a huge market to tap into, of which it already controls 51%.

The company runs its “seed-to-sale” operation—which means it grows and sells its cannabis—throughout the state and has served an impressive number of patients—480,000 to be exact. 

But Trulieve is expanding beyond Florida with its recent purchase of Harvest Health & Recreation. The acquisition gives Trulieve an expanding presence in 11 states, with a total of 126 dispensaries providing cannabis for both medical and recreational uses. 

Cresco Labs (OTC: CRLBF) 

  • Cresco Labs Inc. (OTC:CRLBF)
  • Price: $13.9 (as of close Jun 14, 2021)
  • Market Cap: 5,167,603,056
  • Dividend Yield: 0.00%

Cresco Labs is “one of the largest multi-state, vertically integrated cannabis companies” in the United States, meaning that it cultivates its plants and manufactures, extracts, and packages its products. 

This gives the company a lot of control over its distribution and products and has helped the company grow into a large operator in 10 states, 32 dispensaries, and 44 retail licenses. 

In addition to its own locations, the company’s products are found in more than 700 dispensaries across the country.

Cresco has built out its cannabis powerhouse in part through smart acquisitions. The purchase of Origin House in 2020 helped the company become a top wholesaler and its recent acquisition of Bluma Wellness is expanding the company’s presence in Florida. 

And all of that expansion is really paying off. Cresco’s sales spiked 271% in 2020 and the company finished the year with $116 million in adjusted EBITDA. 

HEXO (NYSE: HEXO) 

  • HEXO Corp. (NYSE:HEXO)
  • Price: $7.5 (as of close Jun 14, 2021)
  • Market Cap: 908,696,777
  • Dividend Yield: 0.00%

HEXO may not have the name recognition that pot stocks like Aurora Cannabis (ACB) or Altria (MO) have, but the company could be a better long-term bet for investors. 

That’s because the company is the third-largest Canadian marijuana producer and the leading producer of cannabis-infused beverages in the country. 

As big as HEXO is in Canada, the company has its eye on the United States as well. HEXO started a joint venture with Molson Coors (TAP) called Truss to sell CBD beverages in America and is also pursuing other ways to expand its CBD products in the country. 

Green Thumb Industries (OTC: GTBIF)

  • Green Thumb Industries (OTC:GTBIF)
  • Price: $37 (as of close Jun 14, 2021)
  • Market Cap: 6,763,478,153
  • Dividend Yield: 0.00%

Green Thumb manufactures and distributes a variety of cannabis products in the United States and owns and operates retail locations across 12 states. 

The company had a tremendous year in 2020 as sales skyrocketed 157% and the company reported a profit of $15 million, compared to a loss of $59 million in 2019. 

But Green Thumb doesn’t think its growth is anywhere near over. The company’s management said recently that the “capital markets are waking up to the great American cannabis growth story” and it believes that President Biden’s administration could help further the shift. 

And the company might be onto something. Just seventeen states and Washington, D.C. have legalized recreational cannabis so far, but Senate Majority Leader Chuck Schumer has indicated the Senate could move forward with federal marijuana reform even if Biden doesn’t push for it. 

Scotts Miracle-Gro (NYSE: SMG)

  • Scotts Miracle-Gro (NYSE:SMG)
  • Price: $193.59 (as of close Jun 14, 2021)
  • Market Cap: 10,783,551,900
  • Dividend Yield: 1.28%

Scotts may seem like an odd player in the marijuana industry but the company made a compelling argument a couple of years ago when it pointed out that, “As the leading provider of nutrients, plant supplements, growing media, air filtration and lighting used for hydroponic and indoor growing, our company is unique in its ability to help people who choose to produce cannabis authorized under state-law.” 

Scotts’ Hawthorne Gardening subsidiary is the leader in hydroponic gardening products, an important supplier for many marijuana growers—and the business is one of Scotts’ most important. 

Hawthorne Gardening sales grew 61% in 2020 and accounted for one-quarter of Scotts’ total revenue for the year.  And the company’s management is optimistic that the U.S. government is moving closer to federal legalization of cannabis. 

On a recent company earnings call, Hawthorne’s general manager Chris Hagedorn said that the company is “increasingly optimistic that the federal rules will change” and added that  “it’s hard not to feel good about the prospects in both the near term and the long term.” 

Marijuana ETFs: Avoid the Cannabis Market Volatility 

If you’re unsure about what specific cannabis stocks to invest in, or you want to avoid some of the volatility associated with pot stocks, then buying shares of an exchange-traded fund (ETF) may be your best bet. 

Two leading marijuana ETFs are Amplify Seymour Cannabis ETF (CNBS) and AdvisorShares Pure Cannabis ETF (YOLO). Amplify’s ETF invests at least 80% of its assets in stocks that generate at least half of their revenue from cannabis and hemp. And AdvisorShares invests in both U.S. and foreign cannabis stocks across a wide range of industries, including pharmaceutical, agriculture, and biotech. 

Of course, there are other marijuana ETFs that investors can choose from, but both of these ETFs have nearly doubled (or more!) the S&P 500’s returns over the past year (as of May 2021). 

Frequently Asked Questions 

Is marijuana a good stock investment?

Like any other private equities, some cannabis stocks will end up being good investments and some won’t. Investors should understand that the cannabis industry is still navigating a lot of regulation, particularly in the United States, which could hinder some of its growth over the short term. 

How do I invest in cannabidiol?

You can invest in cannabidiol by purchasing shares of a publicly traded company that produces or sells CBD. Canopy Growth is one such example of a publicly traded CBD company. 

What are some publicly traded marijuana stocks?

There are many publicly traded companies that have exposure to the legal marijuana industry. They include but aren’t limited to, Constellation Brands, Tilray, GrowGeneration, Innovative Industrial Properties, Curaleaf Holdings, Trulieve Cannabis, Cresco Labs, HEXO, Green Thumb Industries, and Scotts Miracle-Gro.

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Chris Neiger has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Constellation Brands, Cresco Labs Inc., Green Thumb Industries, GrowGeneration Corp, Innovative Industrial Properties, Scotts Miracle-Gro, and Trulieve Cannabis Corp. The Motley Fool recommends HEXO Corp. Millennial Money is part of The Motley Fool network. Millennial Money has a disclosure policy.

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