7 Best Marijuana Stocks to Buy in 2024

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Investing in marijuana stocks can be a lucrative opportunity for those willing to buy and hold for the long term. In this article, we will explore the seven best marijuana stocks to consider adding to your portfolio in 2024. These stocks are well-positioned to benefit from the ongoing growth and legalization of the cannabis industry.

Trulieve Cannabis Corp. (TCNNF)

Trulieve Cannabis Corp. is one of the leading marijuana companies in the United States. As a multistate operator (MSO), Trulieve operates in multiple states where marijuana is legal, giving it a competitive advantage. The company has a strong presence in Florida, Arizona, and Pennsylvania.

Trulieve’s ability to fund its tax obligations through cash flow instead of raising capital is a testament to its solid financial position. The company’s fourth-quarter performance demonstrated a 4% sequential revenue increase, with 95% of revenue coming from retail sales. In 2023, Trulieve reported record cash flow from operations of $202 million.

Green Thumb Industries Inc. (GTBIF)

Green Thumb Industries Inc. is another leading MSO in the cannabis industry. The company has been able to cover its tax bills with operational cash flow, even without federal reform. Green Thumb Industries is known for its strong capital expenditures, revenue-to-debt ratio, and good management.

TerrAscend Corp. (TSNDF)

TerrAscend Corp. is a vertically integrated cannabis company with operations in several states, including Pennsylvania, New Jersey, Maryland, Michigan, and California. The company cultivates, processes, and manufactures its marijuana products, giving it more control over quality and operational efficiencies.

TerrAscend has been working on strengthening its balance sheet and has good growth prospects. The recent endorsement of an adult-use cannabis program in Pennsylvania further bolsters the company’s potential for expansion.

Verano Holdings Corp. (VRNOF)

Verano Holdings Corp. is a vertically integrated MSO active in 13 states. The company grows over 160 strains of marijuana and sells its products in more than 130 company-owned dispensaries, as well as other retail locations. Verano Holdings’ integrated model allows it to have more control over the cultivation and production process, leading to operational efficiencies and cost savings.

Innovative Industrial Properties Inc. (IIPR)

Innovative Industrial Properties Inc. is a unique player in the cannabis industry. Instead of directly cultivating or selling marijuana, the company leases specialized real estate to state-licensed cannabis operators. With over 100 properties in 19 states, Innovative Industrial Properties offers investors exposure to the cannabis industry without the risks associated with directly operating in the sector.

Scotts Miracle-Gro Co. (SMG)

Scotts Miracle-Gro Co. is primarily known for its gardening and lawn care products. However, its subsidiary, Hawthorne Gardening Co., targets marijuana growers with nutrients and other materials used in indoor growing and hydroponics. While the indoor and hydroponic market has faced challenges, Scotts Miracle-Gro has been restructuring its operations to focus on fewer but more profitable brands.

SNDL Inc. (SNDL)

SNDL Inc. is a cannabis company that has diversified into alcohol sales to weather the downturn in the marijuana industry. In the third quarter of 2023, SNDL earned more revenue from its retail liquor business than from retail cannabis. The company has been streamlining its operations and expanding its cannabis retail sales, which have shown year-over-year revenue growth.

Conclusion

Investing in marijuana stocks can be a high-risk, high-reward endeavor. The seven marijuana stocks discussed in this article offer investors exposure to the thriving cannabis industry. Trulieve Cannabis Corp., Green Thumb Industries Inc., TerrAscend Corp., Verano Holdings Corp., Innovative Industrial Properties Inc., Scotts Miracle-Gro Co., and SNDL Inc. are well-positioned to capitalize on the growth and legalization of marijuana. However, it is essential to conduct thorough research and consider your risk tolerance before investing in these stocks.