In this article, we are going to discuss the best pot stocks to invest in according to analysts.
The global marijuana market is growing and the market for legal cannabis is expected to rise at a CAGR of 25.7% and reach $102.2 billion by 2030, according to Grand View Research. Despite regulatory limitations, the cannabis industry is getting attention from investors, suppliers, and researchers. If we want to know how hedge funds feel about pot stocks, we recently covered 11 Best Cannabis Stocks To Invest In according to hedge fund sentiment.
The US Cannabis Market
A total of 38 states and the District of Columbia have legalized marijuana for medicinal use. In addition, 24 states and the District of Columbia allow cannabis for adults’ recreational use. As the push for legalization continues to grow, more people are accepting the idea of legalizing marijuana across the US.
The US is the leading country with the highest weed consumption in the world. If you want to know where most weed is consumed in the US (See Here: 30 Cities with the Highest Weed Consumption in the US).
The American legal cannabis industry experienced notable growth in 2023 as legal sales across the US were $28.8 billion, up by 10.3% year-over-year. Consequently, the legal cannabis market added 22,952 new jobs in 2023, reflecting a better business atmosphere, especially in the cannabis industry. In 2024, the legal cannabis industry supported over 440,445 jobs, an increase of 5.4% from 2023, as per the 2024 Vangst Jobs Report. The major driver for the cannabis industry remains the rising demand for its use for medical purposes. In the coming years, new markets are expected to fuel growth in the cannabis industry. One such example is Nebraska’s vote in favour of legalizing medical marijuana last month.
As we write this article, 24 states have legalized recreational weed in America, in addition to the District of Columbia. However, selling or possessing marijuana remains a crime under federal law.
Florida Disappoints
In November, Florida voters rejected a ballot measure to legalize recreational marijuana, which was a major setback for the legal cannabis industry in the US. Amendment 3 fell short of the required 60% threshold for legalization, despite historic funding levels and an endorsement from President-elect Donald Trump.
Florida remains home to the country’s largest medical marijuana market, adding around $2 billion in annual revenue. Amendment 3 could have boosted the cannabis market to a projected $6 billion by 2026. Florida voters will have to wait for two more years until cannabis legalization gets back on the ballot.
Florida has disappointed cannabis investors and consumers and it has had an impact on cannabis stocks. One of the first cannabis ETFs, Amplify Alternative Harvest ETF, has plunged over 45% since November 4, as of December 23.
With that, let’s take a look at the Best Pot Stocks To Invest In According to Analysts.
A specialized cannabis extraction laboratory, with technicians mixing a concoction.
Our Methodology
To collect data for the 10 best pot stocks to invest in according to analysts, we scanned the lists of cannabis stocks and ETFs on the internet. We shortlisted the pot companies and ranked the 10 best pot stocks to invest in according to analysts’ upside (at least 25%), as of December 23, 2o24.
Why do we care about what hedge funds do? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
10 Best Pot Stocks To Invest In According to Analysts
10. Tilray Brands, Inc (NASDAQ:TLRY)
Share Price (As of December 23): $1.42
Analyst Upside: 41.29%
Tilray Brands, Inc. (NASDAQ:TLRY) is a New York-based cannabis firm with a diversified global portfolio. The company operates in over 20 countries with businesses in medical adult-use cannabis, beverages, spirits, wellness products, and a vast array of consumer-connected lifestyle brands. The company’s cannabis operations range from the production, and distribution, to the sale, co-manufacturing, and advisory services of both medical and adult-use cannabis.
Tilray Brands, Inc. (NASDAQ:TLRY) is among the early names in the cannabis industry that made a mark following the marijuana boom. The company has diversified its portfolio by acquiring other industry players. It has a core presence in Canada, operating a medical business across Europe, and the top branded hemp business in North America. The company’s acquisition game has been a success. For instance, its acquisition of Redecan in June 2023 gave it a strong position in categories such as pre-rolls, oils, and capsules. This has helped Tilray to establish Redecan as one of the best cannabis brands in Canada. According to Hifyre data, the company had the highest market share of 9.8% in Canada, as of September 2024.
In September 2024, Tilray Brands, Inc. (NASDAQ:TLRY) switched to a promising lucrative US THC beverage market with a range of Delta-9 THC mocktails and seltzers through its recently established Tilray Alternative Beverages business unit. The company is diversifying to ensure that it has other sources of income and does not rely solely on cannabis. However, Tilray Brands still has a major presence in cannabis and in the first quarter of its fiscal year 2025, the company posted net revenue of $200 million, up by 13% year-over-year. The revenue from cannabis operations accounted for 32% of the net revenue, second only to its distribution business.
9. Canopy Growth Corporation (NASDAQ:CGC)
Share Price (As of December 23): $2.83
Analyst Upside: 62.40%
Canopy Growth Corporation (NASDAQ:CGC) is one of the early Canadian Cannabis firms to begin operations. Canopy Growth is involved in the production, distribution, and sale of cannabis and cannabinoid-based products for both adult use and medical purposes.
Canopy Growth Corporation (NASDAQ:CGC) has expanded its business across Europe and Australia and has improved its cost structure. In Poland and Germany, the company has achieved swift growth driven by increased sales in the medical business and vaporizer products. Canopy Growth’s Germany-based Storz & Bickel business, famous for premium high-margin devices such as the Volcano and Venti, posted an overall net revenue growth of 32% year-over-year during the second quarter of fiscal 2025. The brand also experienced a sharp surge in the US, led by increased orders from new distribution partners.
The cannabis firm is penetrating into the US market and the acquisition of Acreage, a multi-state operator of cannabis cultivation and retailing facilities in the country, will allow Canopy Growth Corporation (NASDAQ:CGC) to reach a wider consumer base. Canopy Growth is well placed in the US market to accelerate growth with its brands including Superflux, Jetty, Wana, The Botanist, and now Acreage. In the US, the company’s major emphasis remains on the Midwestern and Northeastern markets.
Overall, on the international front, Canopy Growth Corporation (NASDAQ:CGC) is doing well. During Q2 FY25, international sales grew by 72% year-over-year in the high-margin European markets, mainly driven by Kincardine GMP cultivation. In Poland, the company’s revenues grew 200% year-over-year. Although CGC suffered a net loss of $820,000 during Q2 FY25, it is still less than the 37% net loss incurred in the same period last year. CGC is well placed in the North American market and is equipped to meet the rising demand in the high-end European market, making it one of the best pot stocks to invest in.
8. OrganiGram (NASDAQ:OGI)
Share Price (As of December 23): $1.56
Analyst Upside: 65.54%
OrganiGram (NASDAQ:OGI) is a diversified cannabis firm with operations in healthcare, adult recreation, and edibles, among others. The company has a global footprint and a major presence in Canada. The company has a portfolio of legal adult-use recreational cannabis brands, including Edison, Holy Mountain, Big Bag O’ Buds, SHRED, SHRED’ems, Monjour, Laurentian, Tremblant Cannabis, and Trailblazer. The company also specializes in vape and infused pre-roll categories through the BOXHOT brand. OGI is the third largest cannabis brand in Canada with a market share of 7.3%, as of September 2024.
Fiscal 2024 was a transformative year for OrganiGram (NASDAQ:OGI) as the cannabis firm made strategic investments and obtained investments as well. OrganiGram expanded its international position with a $21 million investment in Sanity Group, a leading German cannabis company. Considering the rising competition in the global market, the company also completed several new supply agreements to provide products to patients in Australia and the UK. In addition to that, the company secured a strategic investment of $124.6 million from British American Tobacco p.l.c., reflecting confidence in OGI’s operational strength.
Despite a net loss of $5.4 million in Q4 FY24, OrganiGram (NASDAQ:OGI) delivered a 55% growth in full-year adjusted EBITDA from the previous year. The company’s investments in the international market will further strengthen its revenue stream heading into fiscal year 2025. In addition to the company’s global investments, the acquisition of Motif Labs positions OrganiGram as a leader in licensed producers in Canada, enhancing its market presence. Furthermore, the company has successfully implemented cost savings and saved around $9.1 million in FY24, adding further to its operational efficiency.
7. SNDL Inc. (NASDAQ:SNDL)
Share Price (As of December 23): $1.80
Analyst Upside: 88.71%
SNDL Inc. (NASDAQ:SNDL) is the largest private-sector liquor and cannabis retailer in Canada. The company is one of the top licensed cannabis producers and remains a prominent vertically integrated cannabis enterprise in Canada. SNDL specializes in low-cost biomass sourcing, premium indoor cultivation, product innovation, and low-cost manufacturing facilities, and runs a cannabis brand portfolio.
In the last few years, SNDL Inc. (NASDAQ:SNDL) has registered remarkable growth, with its revenue soaring from $60.9 million in 2020 to more than $909 million last year. However, the Canadian cannabis retailer hasn’t been profitable in its last four financial years. The company is working on a restructuring plan, announced earlier in July, to minimize its annual expenses by $20 million. The company has also improved its cash position and increased its cash balance from $183 million on June 30 to $263 million on September 30, which would be helpful for investments in the next quarters. The company is also working to return value to its shareholders and announced a share repurchase program of almost $70.3 million in November.
SNDL Inc. (NASDAQ:SNDL) is making steep progress and the most recent Q3 recorded revenue gains for the 11th consecutive quarter. This has helped the company achieve a record-breaking gross margin of 26.6%, boosted by improvements in both liquor retail and cannabis operations. The ongoing growth is pushing the company close to cash flow breakeven. Furthermore, the company’s US holdings, which include loans and properties in Michigan, Massachusetts, Nevada, and Texas, protect against potential downturns.
SNDL Inc. (NASDAQ:SNDL) also remains focused on strategic expansion and recently it closed the acquisition of Nova Cannabis Inc. and Indiva Limited. The acquisition of Indiva strengthens SNDL’s position in cannabis edibles in Canada.
6. Green Thumb Industries (OTC:GTBIF)
Share Price (As of December 23): $7.03
Analyst Upside: 106.63%
Green Thumb Industries (OTC:GTBIF) is a US-based consumer packaged goods company that makes and sells cannabis products for both medical and recreational use. The company has seven different brands and operates in 15 states with 18 production facilities and 77 stores. The company’s product portfolio includes flowers, pre-rolled joints, concentrates, vapes, capsules, tinctures, and edibles.
Green Thumb Industries Inc. (OTC:GTBIF) manages the entire process from growing to selling. However, in well-established markets, the company relies on other cannabis producers to save on expansion costs. Green Thumb Industries is improving its profitability and holds a strong position to benefit from the cannabis market. A major factor driving Green Thumb’s growth is its agreement with Magnolia Bakery, a cupcake and dessert chain that now sells THC products made from hemp. Furthermore, the company is expanding its cannabis healthcare business through its retail chain, RISE Dispensaries. In November, RISE Dispensaries opened new locations, expanding the retail footprint in the US to 99 locations.
During the third quarter of 2024, Green Thumb Industries Inc. (OTC:GTBIF) posted yet another strong outcome with revenue up 4.2% year over year to $287 million, driven by solid demand for its cannabis products. The company achieved an adjusted EBITDA of $89 million during the quarter and ended the nine months with a free cash flow of $133.51 million, significantly improving its cash position compared to the past few years.
5. Cresco Labs (OTC:CRLBF)
Share Price (As of December 23): $0.90
Analyst Upside: 125.26%
Cresco Labs (OTC:CRLBF) is a multi-state cannabis company with operations in the retail and medical cannabis segment. The company is licensed to grow, manufacture, and sell retail and medical cannabis products primarily through Sunnyside, Cresco Labs’ national dispensary brand, and third-party retail stores. The company offers more than 400 products sold across 1,600 dispensaries and retail stores in the US.
Cresco Labs (OTC:CRLBF) is focused on specific market segments where it has a stronghold and significant growth potential. In addition, the company is focused on best-in-class retail operations. This policy has recently been a key driver for the company’s growth. During the third quarter of 2024, the company recorded revenue of $180 million at a 29% adjusted EBITDA margin.
The key thing was the company posted its record $49 million of operating cash flow during Q3. In 2024 so far, Cresco Labs had $103 million in operating cash flow, allowing the company to reinvest in its core business and explore new markets.
4. GrowGeneration Corp. (NASDAQ:GRWG)
Share Price (As of December 23): $1.66
Analyst Upside: 150.78%
GrowGeneration Corp. (NASDAQ:GRWG) is one of the leading cannabis firms that is involved in indoor and outdoor hydroponic and organic gardening. The company sells hydroponic gardening products and claims to be the largest chain of specialty retail hydroponic and organic garden centers in the US.
GrowGeneration Corp. (NASDAQ:GRWG) has been working on restructuring its business and it is investing in proprietary brands. After ramping up its 19 retail locations during Q3, the company has introduced three new premium product lines across its portfolio of proprietary brands, which include growing lighting, essential accessories, and medium for indoor growing and greenhouse hydroponics. The company further plans to announce more products in this category as it expects the proprietary brand sales to account for 35% of total gardening sales by the end of 2025.
During Q3 2024, the proprietary brand sales surged to 23.8% of total sales, up from 19.4% year-over-year, mainly driven by new product launches. Moreover, the company achieved a 12.5% increase in same-store sales. This was the first positive same-store sales growth in three years. The company is also improving its expense load through cost-cutting measures and in Q3 the operating expenses decreased by 5.4%, falling to $22.9 million.
The company maintains a solid cash position with cash equivalents and marketable securities of $55.2 million with zero debt, as of Q3 2024. To return value to the shareholders, GrowGeneration Corp. (NASDAQ:GRWG) repurchased an additional $1.8 million of stocks during Q3. GrowGeneration Corp. is shifting its focus to e-commerce operations, where the demand is higher.
3. Curaleaf Holdings, Inc. (OTC:CURLF)
Share Price (As of December 23): $1.49
Analyst Upside: 156%
Curaleaf Holdings, Inc. (OTC:CURLF) is a US-based provider of consumer cannabis products. Through Curaleaf International Holdings Limited, it has a supply and distribution network throughout the European market. The company primarily operates in 17 states and owns and operates 150 dispensaries and 19 cultivation sites. The company’s products include flower and pre-rolls, dry-herb vaporizer cartridges, concentrates, and edibles, among others.
Curaleaf Holdings, Inc. (OTC:CURLF) has suffered from regulatory pressures and Florida voters rejecting cannabis for the use of recreational use. The company reported a net loss of $42.3 million as the net revenue dropped by 1% year-over-year to $330.5 million during Q3 2024. However, the company has sustained its market position in the global market as its international business reported an 82% year-over-year growth to $30 million in revenue. The global market is a key driver for Curaleaf during these tough times which offers a diversification of revenue streams that mitigates concentration risk.
During Q3, the company opened two new dispensaries in New York and expanded adult-use sales in two existing stores. Adding further to Curaleaf’s expansion drive during the quarter, the company started adult-use sales in Ohio to wholesale customers. With the opening of two new dispensaries in Florida, the company now operates 150 retail stores in the US.
Curaleaf Holdings, Inc.’s (OTC:CURLF) international business keeps it afloat and with the new administration expected to be favourable to cannabis legalization, CURLF remains a promising pot stock to invest in.
2. TerrAscend Corp. (OTC:TSNDF)
Share Price (As of December 23): $0.65
Analyst Upside: 160%
Next on our list is TerrAscend Corp. (OTC:TSNDF), a Canadian cannabis company that has vertically integrated licensed operations in the US and retail operations in Canada. TerrAscend’s products include flowers, concentrates, topicals, tinctures, and edibles. The company offers a variety of cannabis products and owns or licenses several brands including Gage Cannabis, Cookies, Lemonnade, Ilera Healthcare, State Flower, Wana, and The Apothecarium, among others.
TerrAscend Corp. (OTC:TSNDF) continues to hold a solid market share in the US, including the leading market share position in New Jersey. Despite the losses, the company is improving its cash flow. During Q3 2024, the company posted a ninth consecutive quarter of positive cash flow from continuing operations and a fifth straight quarter of positive free cash flow, driven by an increase in sales. The net loss during the quarter was attributed to several one-time non-cash accounting items totaling $13 million, which include a reversal of bad debt expense in Q2 2024.
The company is focused on an aggressive M&A policy to support growth. The company announced the signing of a definitive agreement to acquire the assets of Ratio Cannabis LLC in Ohio. The company’s expansion into the sixth state has opened the gates for it to establish operations in the Midwest. Ratio Cannabis is a high-performing dispensary in Ohio, with no competition within a 20-mile radius, which is expected to add to the company’s revenue. This also expands TerrAscend’s retail footprint to 38 dispensaries across all six states.
1. Trulieve Cannabis Corp. (OTC:TCNNF)
Share Price (As of December 23): 4.82
Analyst Upside: 309.45%
Trulieve Cannabis Corp. (OTC:TCNNF) is a vertically integrated cannabis company that primarily operates in three parts of the US: Southeast, Northeast, and Southwest. The company engages in cultivation, manufacturing, and retail operations in cannabis. Trulieve also specializes in various extraction techniques that are used to produce a range of cannabis topicals and vapes featuring cannabinoids.
Trulieve Cannabis Corp. (OTC:TCNNF) is focused on expansion with the opening of new medical cannabis dispensaries across Florida and Georgia during Q4. In the last quarter, Trulieve expanded its retail network to 215 locations, including 14 new locations in Florida and one in Pennsylvania. The company is expanding its reach in areas where it expects higher demand.
Quarterly results reflect the company’s expansion policy, reporting a 3% year-over-year increase in revenue despite challenges from seasonality and Hurricane Helene. The Q3 2024 revenue was reported around $284 million and achieved a gross margin of 61%, mainly due to efficiencies and low cultivation costs.
While we acknowledge the potential of Trulieve Cannabis Corp. (OTC:TCNNF) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TCNNF but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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