5 Best Cannabis Stocks for 2024

In 2024, the cannabis industry finds itself at a critical point, with regulatory shifts exerting considerable influence over the trajectory of cannabis stocks. In recent months, we have seen a surge in cannabis stocks and ETFs, driven by mounting anticipation surrounding potential changes in cannabis classification. Notably, the Department of Health and Human Services' request for the DEA to review cannabis classification has catalyzed market optimism. Additionally, a coalition of 12 state attorneys general advocating for reclassification further underscores the momentum toward regulatory reform.

Despite significant progress at the state level, with 24 states and Washington, D.C., legalizing cannabis for recreational use, federal prohibition remains a significant hurdle. Currently classified as a Schedule I drug alongside substances like heroin and LSD, cannabis faces regulatory barriers including adverse taxation and limited access to the financial system. The prospect of reclassification, potentially aligning cannabis with substances such as anabolic steroids and ketamine, represents a significant step towards normalization within the regulatory framework.

The US cannabis industry is expected to grow significantly, with a projected CAGR of 24% by 2030. Given this growth outlook, let's look at five marijuana stocks that are primed to capitalize on this maturing market amidst evolving regulations. These companies offer investment opportunities within the cannabis sector, ranging from established industry leaders to promising newcomers.

Curaleaf Holdings ($CURLF)

3.9B Market cap

Curaleaf Holdings, Inc. is a leading international provider of cannabis products, operating in 17 states with 147 dispensaries and 21 cultivation sites. Its brands, including Curaleaf, Select, and Grassroots, serve both medical and adult-use markets. With a presence in key states and expansion into Europe, Curaleaf is the largest company in the cannabis sector, offering a wide range of products including vape oils, flower, topicals, capsules, and edibles

Innovative Industrial Properties Inc ($IIPR)

3B Market cap

Innovative Industrial Properties, Inc. is a real estate investment trust (REIT) specializing in acquiring and managing industrial properties leased to state-licensed cannabis operators. They acquire properties through sale-leaseback transactions and third-party purchases, owning approximately 110 properties across multiple states totalling around 8.7 million rentable square feet, including properties under development/redevelopment.

Trulieve Cannabis Corp ($TCNNF)

1.6B Market cap 

Trulieve Cannabis Corp. is a significant player in the medical cannabis sector, operating across multiple states in the U.S. with a notable presence in Arizona, Florida, and Pennsylvania. As a vertically integrated company, Trulieve oversees cultivation, production, and distribution, ensuring quality control at every stage. Leveraging advanced extraction techniques and diverse brands like Avenue, Cultivar Collection, and Muse, Trulieve offers a wide range of products tailored to varying preferences. With a network of 192 retail dispensaries and home delivery services, the company provides accessibility and convenience for its customers. Positioned as a multi-state operator, Trulieve navigates regulated markets skillfully, maintaining its commitment to innovation and service excellence in the medical cannabis industry

Glass House Brands Inc. ($GLASF)

489M Market cap

Glass House Brands Inc. operates as a vertically integrated cannabis company in California, engaging in cultivation, manufacturing, and distribution. The company supplies bulk flower, trim, oils, and consumer packaged goods to wholesalers and retail stores across the state. With a portfolio of brands including Glass House Farms, Forbidden Flowers, and Mama Sue, along with a network of retail dispensaries such as Farmacy, Glass House Brands is active in the industry. Supported by multiple greenhouse cultivation and manufacturing facilities, the company has experienced significant share price growth, up 120% in the past year, attributed to improving margins and revenue performance, reflecting its presence in the evolving cannabis market.

Grown Rogue International Inc. ($GRUSF, $GRIN.CN)

106M Market cap 

Grown Rogue International Inc. is a Canadian craft cannabis company specializing in high-quality flower and flower-derived products. Operating primarily in Oregon and Michigan, with a range of services offered, the company utilizes efficient cultivation methods across approximately 90,000 square feet of cultivation area, serving both indoor and sun-grown markets. With a strategic expansion plan, including entry into the New Jersey market, and a consistent track record of financial success—highlighted by three consecutive quarters of record revenue and six consecutive quarters of positive free cash flow—Grown Rogue is establishing itself as a significant player in the cannabis industry, meeting the demand for premium cannabis experiences nationwide.