Cannabis stocks have tumbled to multi-year lows in 2025 due to setbacks in the removal of regulatory hurdles, including delays in the long-awaited reclassification of weed as a less harmful substance.
Investors who believe in the eventual federal legalization of marijuana, though, may see this as an opportunity to snap up these stocks at a discount and reap the rewards when further regulatory shifts occur.
The potential for growth in the industry is enormous, and it may make sense to invest in some cannabis stocks now while they are cheaper. We have picked eight pot stocks that are well-positioned to weather the storm. See our shortlist below:
Top trading and investing platform
- Ideal for beginner investors
- Copy trade other successful investors
- Access 6,000+ stocks for local and global exposure
The top American cannabis companies to invest in right now
Here’s an overview of our top picks. Based in the US or Canada, all of these marijuana stocks trade on US stock markets.
- OrganiGram Holdings: It’s a licensed cannabis producer in Canada, known for its high-quality medical and recreational cannabis products.
- Jazz Pharmaceuticals: The biopharma firm develops products for various medical conditions, including sleep disorders and cancer. One of its therapies is based on cannabidiol, an active ingredient in marijuana.
- Innovative Industrial Properties: The US-based company is a real estate investment trust (REIT) that specializes in acquiring and leasing properties to licensed cannabis operators.
- Tilray Brands: The pharmaceutical and cannabis lifestyle company cultivates, processes, and distributes medical cannabis products in North America and Europe.
- Scotts Miracle-Gro: A leading company in the lawn and garden industry, Scotts provides products and services for lawn care, gardening, and pest control and has a subsidiary that caters to cannabis growers.
- Cronos Group: The cannabis company cultivates, processes, and distributes cannabis products, with operations in Canada and international markets.
- Green Thumb Industries: The Chicago, Illinois-based cannabis company operates in multiple US states, focusing on cultivation, processing, and distribution of cannabis products.
- NewLake Capital Partners: The REIT specializes in providing real estate capital to state-licensed cannabis operators through sale-leaseback transactions, third-party purchases, and build-to-suit projects.
Disclaimer: Your capital is at risk.
- Show Full Guide
An in-depth look at these 8 marijuana stocks to buy
Let’s explore the investment case for the marijuana stocks included in our list in detail. These cannabis companies are already profitable or at least clearly headed in that direction. They have also shown revenue growth in their most recent quarterly report.
1. Organigram Holdings: Profitable cannabis company, focusing on growing brands
Organigram (NASDAQ: OGI), based in Toronto, is a producer of cannabis and cannabis-derived products in Canada. It doesn’t own any dispensaries but sells its indoor-grown cannabis through other retailers for recreational and medical use. It’s known for its brands, including Edison, Holy Mountain, Big Bag O’ Buds, SHRED, Monjour and Trailblazer.
In November 2025, the company named James Yamanaka, former global head of strategy at British American Tobacco (NYSE: BTI), as its new chief executive officer. BAT holds a 30% share in the Canadian company. Thanks to this big investment, Organigram is expanding its presence in Europe and the US in a plan to gain market share.
Its US $63.6 million purchase of Motif Labs, a maker of cannabis concentrates, extracts, and vapes, in 2024 made Organigram Canada’s largest pure play cannabis company by market share. The acquisition also boosted its revenue to a record. It has also invested in Roxboro, North Carolina-based cannabis wholesaler Open Book Extracts, as well as in the German cannabis company Sanity Group.
It now has supply agreements with seven partners in Germany, UK, Australia, and Israel. The cannabis company is funding a strategic investment tool it calls Jupiter to help deliver its expansion efforts overseas and in the US.
Your capital is at risk.
2. Jazz Pharmaceuticals: Drugmaker using cannabis products for medicine
The Dublin-based Jazz Pharmaceuticals (NASDAQ: JAZZ) focuses on medicines to treat sleep disorders and epilepsy and is growing its portfolio of cancer treatments. It inherited cannabis-based therapies when it bought GW Pharmaceuticals in 2021 for $7.2 billion.
In November, the company estimated full-year 2025 revenue at between $4.175 billion and $4.275 billion. That compares with revenue of $4.07 billion in 2024.
The reason for the optimism is increased sales for Xywav, used to treat excessive daytime sleepiness, and Epidiolex/Epidyolex, an oral-based cannabidiol therapy to treat epileptic seizures, which both had double-digit percentage growth in the quarter.
Jazz’s cancer therapies are showing progress as well. It received FDA approvals for Modeyso to treat an aggressive form of brain tumor, as well as Zepzelca and atezolizumab as a combination therapy to treat extensive-stage small cell lung cancer. It launched Modeyso for commercial sale in August.
Your capital is at risk.
3. Innovative Industrial Properties: Cannabis REIT with solid dividend, steady cash flow
Founded in 2016 to provide capital to cannabis companies, the largest cannabis REIT by market value owns 112 properties spread across 19 states and 36 tenants. Innovative (NYSE: IIPR) is a triple-net lease operator, meaning that all property expenses, including capital repairs, property taxes, and property insurance, are paid by the tenants.
Innovative has a low debt-to-equity ratio of 0.18x, giving it ample liquidity to grow. In the first nine months of 2025, though, revenue fell to $199.3 million from $231.8 million in the same period a year earlier, driven by some tenant defaults. AFFO per share was $5.35 per share, down from $6.75 a year earlier.
As part of its growth and diversification strategy, in 2025, the company invested $270 million into IQHQ, a life science real estate platform with over $5 billion in total assets, its first investment outside of the cannabis industry.
The REIT currently pays a quarterly dividend of $1.90, which equals a yield of 14.78%. However, its AFFO payout ratio is 106%, which is high, even by the standards of REITs, which are required to pay out 90% of their taxable income to investors.
Your capital is at risk.
4. Tilray Brands: Cannabis stock with diverse revenue sources, including craft beer
Founded in 2013 and headquartered in Nanaimo, British Columbia, Canada, Tilray has operations in 20 countries in North America, Europe, Latin America, and Australia.
What sets it apart from other cannabis retailers is that it doesn’t own dispensaries. Instead, it focuses on producing and distributing cannabis products, as well as other consumer packaged goods, through other channels. Its Tilray Medical division focuses on providing access to its global portfolio of medical cannabis brands, including Tilray, Aphria, Broken Coast, Symbios and Navcora.
It has an edge over pure-play cannabis retailers because it’s the fifth-largest craft beer brewer in the US. Due to this diversified approach, it made nearly as much money from beverage sales ($55.7 million) as it did from cannabis sales ($64.5 million) in the first quarter of fiscal 2026.
In the first quarter of fiscal 2026, it posted an adjusted net income of $3.9 million, compared to an adjusted net loss of $6.1 million in the year-earlier quarter. Despite its improved profitability, Tilray’s stock dropped 52% in 2025, as part of the larger trend affecting cannabis industry shares. Management is looking to seize the opportunities as “the US explores cannabis rescheduling and the European cannabis landscape continues to evolve.”
Your capital is at risk.
5. Scotts Miracle-Gro: Cannabis-growing equipment and lawn retailer sees improved revenue, profitability
Scotts Miracle-Gro Company (NYSE: SMG), based in Marysville, Ohio, is the world’s largest marketer of branded consumer lawn and garden products as well as a leader in indoor and hydroponic growing products used by cannabis companies and individual growers, sold by its Hawthorne hydroponics segment.
The company is in the midst of what it says is a three-year turnaround; its stock, though, dropped about 15% in 2025. In fiscal 2025, revenue shrank 4% to $3.41 billion from the previous fiscal year. Its US Consumer segment had net sales of $2.99 billion, falling 1% as the company had predicted. Its Hawthorne segment, though, continues to underperform, with sales falling 44% from the previous fiscal year.
Profitability improved during the year, with adjusted net income, which strips out non-recurring items, rising 66% to $219.6 million. Adjusted EPS rose to $3.74 from $2.29. The company forecasts US Consumer sales growth in the low single digits and adjusted EPS between $4.15 and $4.35
One factor that makes holding onto the stock and waiting for a turnaround easier is that the company pays a quarterly dividend of $0.66 per share, which yields 4.07%
Your capital is at risk.
6. Cronos Group: Small marijuana firm growing more profitable, focusing on international markets
Toronto-based Cronos (NASDAQ: CRON) doesn’t own dispensaries and instead focuses on marketing its brands to an international audience. Hifyre retail analytics data show that its Spinach brand of cannabis is currently at the No. 2 spot in Canada, with a 4.5% overall market share. Its Peace Naturals brand is the No. 1 medical cannabis seller in Israel.
In the first nine months of 2025, revenue rose 14% year over year to $138 million. Net loss narrowed to $2.44 million from a loss of $3.92 million in the same period a year earlier, its first quarter of profitability since 2021.
President and CEO Mike Gorenstein said the company is focusing on improving margins while growing its presence in Germany, Switzerland, the UK and Australia.
It’s also worth noting that the company has a strong balance sheet, with no debt, and a cash position of $824 million, which gives it plenty of flexibility in determining its growth plans.
Your capital is at risk.
7. Green Thumb Industries: Profitable pure-play pot stock showing slow determined growth
The Chicago-based retailer and grower is one of the most consistently profitable pure-play cannabis companies. Established a decade ago, Green Thumb Industries (OTC: GTBIF) sells its brands (Shine, Beboe, Dogwalkers, Doctor Solomon’s, Good Green, incredibles and RYTHM) at other retailers as well as at its 108 RISE dispensaries across 14 US states.
The company expanded its operations this year into Minnesota, where, since it began selling cannabis on Sept. 17, all eight of its dispensaries there are operational.
The company has grown revenue every year since its inception in 2014, and it’s on track for another year of revenue growth in 2025.
The company is in a stronger position than other larger cannabis retailers in being able to survive until there’s some level of decriminalization at the federal level in the US. Company president Ben Kovler said he sees the industry growing into at least a $62 million one in the US.
8. NewLake Capital Partners: Cannabis REIT with attractive yield, growing profitability
Based in New Canaan, Connecticut, the real estate investment trust (REIT) primarily provides capital to state-licensed cannabis operators through sale-leaseback deals and by funding construction projects.
Although Newlake (OTC: NLPC) was established in 2019 and went public in 2021, it has already become the second-largest cannabis REIT in the US, with 34 properties, 31 of which are leased. Those properties have a 12.3-year weighted average remaining lease term, indicating long-term stability.
One of the primary attractions for Newlake, as with many REITs, is its dividend, which has grown 79% since its IPO, including a 4.8% bump in 2024. Its dividend yield is around 10%, but its adjusted funds from operations (AFFO) payout ratio is only 82%, comfortably safe for a REIT.
Newlake has consistently grown AFFO, the best measure of a REIT’s profitability. So far in 2025, its AFFO per share is $0.52, up 1.9% from 2024. The biggest concern about Newlake is that its client base isn’t as diverse as it could be, with one tenant, Curaleaf, responsible for 24.1% of its annualized base rent.
Performance of these top-ranked pot stocks at a glance
The following table shows a quick overview of recent revenue and stock-price performance:
| Stock, symbol | Last year’s revenue growth (YOY) | One-year price performance |
| OrganiGram (NASDAQ: OGI) | 7.13% | 14.14% |
| Jazz Pharmaceuticals (NASDAQ: JAZZ) | 6.12% | 38.33% |
| Innovative Industrial Properties (NYSE: IIPR) | -0.32% | -52.66% |
| Tilray Brands (NASDAQ: TLRY) | 4.1% | -43.85% |
| Scotts Miracle-Gro (NYSE: SMG) | -3.93% | -28.73% |
| Cronos Group (NASDAQ: CRON) | 34.82% | +23.51% |
| Green Thumb Industries (OTC: GTBIF) | 7.7% | -23.60% |
| NewLake Capital Partners (OTC: NLCP) | 5.98% | -33.91% |
Why invest in pot stocks?
As marijuana legalization and the consumer base continue to expand, the global cannabis industry is bound for rapid growth, attracting significant investor interest.
Cannabis market research company BDSA sees worldwide cannabis sales expanding to $58 billion in the next five years from an estimated $36 billion in 2023, at a compound annual growth rate of 10%.
With potential federal legalization on the horizon, the industry is poised to offer substantial long-term opportunities for investors seeking to capitalize on this emerging market.
However, investing in cannabis stocks comes with inherent risks. Regulatory uncertainties can impact the industry’s growth and stability. Additionally, many cannabis companies have relatively small market caps, which can make them more volatile.
While some major cannabis companies are listed on major exchanges, such as the New York Stock Exchange, many trade over-the-counter (OTC) with less stringent regulatory oversight, which increases investment risks.
Despite these challenges, the cannabis industry offers substantial potential for long-term growth and significant returns. To mitigate risks, investors should conduct thorough research, diversify their cannabis stock portfolio, and carefully consider their risk tolerance. It also makes sense to check out stock screeners or stock tip services as part of your research.
The regulatory framework for cannabis companies
Currently, there are 24 states, three territories, and the District of Columbia (Washington D.C.) in the US that have legalized marijuana for adult recreational as well as medical use. A further 15 states allow it for medicinal purposes only. Worldwide, cannabis for personal use is legal in neighboring Canada and 9 other countries.
Pot stocks surged in mid-2024 when the Biden administration took a step toward the reclassification of cannabis as a less dangerous substance, which could pave the way for easing federal restrictions on the drug. However, the headwinds from referendum defeats and the result of the US election put paid to that optimism and brought weed stocks under renewed pressure.
The defeat of a ballot referendum in Florida that would have legalized adult-use sales of marijuana in the Sunshine State was a major blow to hopes of further decriminalization. Ballot initiatives to allow marijuana possession for adult use also failed in North Dakota and South Dakota.
Another setback came from the US election, with Republicans, many of whom oppose further decriminalization of cannabis, taking control of both houses of Congress. This complicates the prospect of federal decriminalization of the drug.
While Donald Trump, when he was still on the campaign trail, said he would vote in favor of marijuana legalization in Florida. Even though he said in August 2025 that he was going to look at whether to support changes to the way marijuana is regulated within a few weeks, there has been no movement on the matter since. His views on federal-level legalization remain ambiguous.
What’s in store for the US cannabis sector in 2026?
There are two significant trends that are likely to impact the cannabis industry in 2026. The biggest is the possibility for tax relief through the rescheduling of cannabis as a less dangerous, Schedule III drug by the US Drug Enforcement Agency.
That would mean the removal of the 280E tax burden (which currently forbids deducting business expenses) and would instantly improve cash flow, potentially saving major operators enough cash to pay down that maturing debt.
The most disruptive force in 2026 will be the enforcement of the federal hemp reforms, which were signed into law in November 2025. By late 2026, when the grace period ends, the multi-billion-dollar “gas station weed” market (Delta-8, THCa flower, high-potency hemp gummies) will effectively vanish. That could mean a big shift of consumers back to state-licensed dispensaries.
The last area of concern in 2026 is that much of the debt taken on by major US operators (Curaleaf, Cresco, etc.) during the boom years is maturing in 2026. Refinancing these loans in a high-interest environment will be painful for cannabis stocks and could lead to greater industry consolidation.
What does reclassifying cannabis mean for the industry?
Under the DEA’s proposal marijuana, which has been a Schedule I drug, the same class as heroin and LSD, for more than 50 years, would get a Schedule III drug status, putting it alongside Tylenol with codeine and anabolic steroids, considered to have a moderate to low risk of physical dependency.
More importantly for the industry, though, reclassification would significantly reduce the federal tax burden on cannabis firms, lifting profits and unlocking funds for investment.
In the US, 280E tax code regulations currently prevent cannabis businesses from deducting normal business expenses, such as rent, salaries and advertising, from their taxable income. On top of that, reclassification would remove some regulatory barriers on cannabis research.
Federal penalties for the illegal manufacture, distribution or sale of cannabis could change. As a Schedule I drug, the penalty is five to 40 years’ imprisonment for the first offense. For a Schedule III drug, the maximum is five years imprisonment.
One thing that reclassification wouldn’t change is cannabis companies’ current inability to work with federally insured banks.
In addition, 2025 could bring movement in the following areas:
There have been efforts to allow federally insured banks to lend capital to cannabis, something that would come with the SAFER banking bill, if it passes.
The year 2025 will also be a crucial year for hemp. Early 2025 could bring significant regulatory advancements in the intoxicating hemp sector and they could be addressed in the Farm Bill.
Efforts to integrate intoxicating hemp into legal cannabis channels, potentially allowing hemp beverages to be sold via alcohol networks, would address critical issues like inadequate testing, underage access, and inconsistent taxation. This shift is projected to boost legal cannabis revenues.
The different types of cannabis stocks
Cannabis stocks encompass a diverse range of companies operating within the cannabis industry, from pure-play cannabis growers and retailers to cannabis-adjacent companies, or larger businesses with exposure to marijuana.
They include:
- Pure-Play Marijuana Retailers: These companies focus solely on the cultivation, production, and sale of cannabis products. Examples include multi-state operators such as Green Thumb Industries, Organigram Holdings and Chronos Group.
- Cannabis Service Providers: These companies offer support services to the cannabis industry, such as real estate investment trusts (REITs) and specialized grow lighting companies with Innovative Industrial Properties, Newlake Capital Partners and Scotts Miracle-Gro fitting in this group.
Beyond pure-play cannabis companies, the category also includes:
Healthcare Stocks with Cannabis Connections: These companies are involved in research and development of cannabis-based therapies and medications. Jazz Pharmaceuticals is a good example.
Diversified Companies: These companies engage in both cannabis and other businesses, such as alcohol, beverages. Tilray is one such company.
What are the most profitable cannabis industry niches?
Some of the most profitable cannabis companies are not pure-play cannabis stocks, but cannabis adjacent firms whose connection to the plant is more limited. Here are a few examples:
Cannabis REITs: Companies such as NewLake Capital Partners and Innovative Industrial Properties are essentially landlords to cannabis companies. While they face risks because a struggling cannabis company that is a tenant may not be able to pay rent, most cannabis REITs are profitable and have fewer downsides than pure-play cannabis companies.
Diverse cannabis companies: Companies such as Scotts Miracle-Gro merely sell products to aid the growing of cannabis and have plenty of other revenue streams. There are other cannabis-related stocks, such as Tilray Brands, that in addition to its cannabis sales, is a craft beer brewer, or Jazz Pharmaceuticals, which has a stable of therapies in addition to cannabinoid-related drugs.
Pure-play growers: Some of the most profitable cannabis companies are ones who only sell their product wholesale, selling their brands to cannabis retailers, while having no dispensaries of their own, such as Organigram or Cronos Group.
For investors looking beyond cannabis into future-focused sectors, investing in web3 stocks can offer exposure to emerging technologies like blockchain, AI, and decentralized applications that are poised to reshape global markets.
Pros and cons of investing in weed stocks
Despite the industry’s sluggish performance this year, cannabis stocks have a huge future. As more states open up to legal sales of medical and recreational cannabis and as federal laws are relaxed, the industry is expected to boom.
That doesn’t mean that investing in any weed stock is a guaranteed win. Here are some pros and cons to consider – similar to how investors weigh opportunities when exploring technology stocks to invest in.
Pros
- Above-average growth rate: Grand View Research estimates that the legal marijuana market will be worth $73.6 billion worldwide by 2027, a growth rate of 18.1% over the next seven years.
- Changes to federal laws are likely to make business easier. The potential for the rescheduling of cannabis to a Schedule III substance eliminates some of the current hurdles in the industry, including tax burdens.
- Cannabis stocks don’t trade in tandem with other sectors. That means they can provide good diversification for investors.
Cons
- Cannabis companies are frequently undercapitalized. This creates a problem if there’s an economic slowdown as some companies won’t have the ability to withstand an extended period of sagging sales.
- Illegal marijuana sales continue to cut into the margins of legal companies. Illegal marijuana sales have been a problem in nearly every state and keeps the price of cannabis low.
- Many cannabis companies, despite their stock slumps, may be overpriced considering their price-to-earnings ratio. That means that their potential earnings may already be priced into the stock.
How We Rate Stocks
We review each stock that is selected. Below are the key metrics we check before listing stocks on the website. For further details, you can also take a look at our stocks rating guide, featured on ValueWalk.
Balance sheet
Potential Growth
Competitiveness
Liquidity
Cannabis stock FAQs
What is the best marijuana stock investment?
What’s the largest cannabis company?
Is it legal to invest in cannabis stocks?
What is the best cannabis stock under $10?
Are there any marijuana penny stocks?
What’s the most profitable marijuana company?
Do pot stocks pay dividends?
References
- BDSA global cannabis forecast
- Organigram appoints new chief executive
- Organigram third-quarter earnings 2025
- Jazz Pharmaceuticals 2025 third-quarter earnings
- Innovative Industrial Properties third-quarter earnings
- Tilray first-quarter earnings for fiscal 2026
- Tilray buys 3 craft breweries
- Cronos Group third quarter 2025 earnings
- Scotts Miracle-Gro earnings for fiscal 2025
- NewLake Capital Partners investor presentation
- Green Thumb investor presentation
