11 Best Cannabis Stocks To Invest In

3. Cronos Group Inc. (NASDAQ:CRON)

Number of Hedge Fund Holders: 13

Cronos Group Inc. (NASDAQ:CRON), a cannabinoid company based in Canada, is engaged in the cultivation, manufacture, and marketing of cannabis and cannabis-derived products for both medical and adult-use markets. A noteworthy aspect of the company is its close association with Altria Group, a bigwig in the tobacco industry which maintains a 41% stake in Cronos that it acquired for $1.8 billion in 2019.

Cronos Group Inc. (NASDAQ:CRON) also hasn’t been able to make any net profit over the last 4 years, but its revenue has improved consistently. That said, the company had a solid Q3 2024 as it reported a net revenue uptick of 38% YoY to $34.4 million. This comes after Cronos had already reported a notable 46% YoY increase in net revenue in Q2, highlighting its strong growth trajectory. The majority of this growth stems from its increasing market share in Canada, despite the high excise taxes and overregulation in the country. Notably, Cronos Group Inc. (NASDAQ:CRON) managed to deliver such impressive results while also decreasing operating expenses by $3 million YoY (adjusted for non-cash impairments), significantly improving EBITDA from -$15 million to -$6 million.

Cronos Group Inc. (NASDAQ:CRON) maintains a strong balance sheet, enabling it to capitalize on future growth opportunities. At the end of Q3, the company reported $862 million in cash – significantly exceeding its current market capitalization – and additional value in loan receivables and real estate assets, with zero debt obligations.

Cronos Group Inc. (NASDAQ:CRON) presents a good opportunity to investors, offering limited downside risk thanks to its balance sheet strength while capturing market share in multiple countries and improving efficiency. It is included in our list of the Best Marijuana Stocks to Buy Now.