As the cannabis industry continues to grow, more and more investors are looking to get in on the action. But with so many cannabis stocks on the market, how do you know which ones may be worth investing in?
The legalization of cannabis in many countries has led to a surge in the legal cannabis industry and created a new market for investors. Whether you possess extensive investment experience or are embarking on your investment journey, continue reading to explore the Cannabis markets
Explore Cannabis stocks on Public
Build and diversify your portfolio with cannabis companies across the supply chain
There is significant interest in investing opportunities available in the cannabis stock market. There are several types of cannabis stocks that you may want to be aware about before investing, they are:
Growers: These companies grow and cultivate marijuana plants, either for medical or recreational use.
Biotechs: These companies focus on developing and researching cannabis-based medications and treatments.
Ancillary businesses: These are companies that provide services to the marijuana industry, such as packaging, marketing, and consulting.
Retailers and distributors: These companies sell marijuana products directly to consumers, either through physical storefronts or online.
Cannabis-focused investment firms: These firms invest in a variety of marijuana-related businesses, including growers, biotechs, and ancillary businesses.
CBD-focused companies: These companies specialize in producing and selling CBD products, which are derived from the cannabis plant but do not contain THC (the psychoactive component of marijuana).
The list below offers data on some of the largest cannabis-related companies in the US by their market capitalization.
| Ticker | Company Name | Price | Dividend | Market Cap |
|---|---|---|---|---|
| ABBV | AbbVie | $148.85 | 5.92 | $262.61B |
| MO | Altria Group | $45.60 | 3.76 | $81.4B |
| JAZZ | Jazz Pharmaceuticals | $130.17 | N/A | $8.35B |
| SMG | Scotts Miracle-Gro Company | $69.11 | 2.64 | $3.88B |
| CURLF | Curaleaf Holdings | $3.2400 | N/A | $2.35B |
| GTBIF | Green Thumb Industries | $6.65 | N/A | $1.59B |
| TCNNF | Trulieve Cannabis | $3.9500 | N/A | $733.82M |
| CRLBF | Cresco Labs Inc | $1.57 | N/A | $698.29M |
| CRON | Cronos Group Inc | $1.780 | N/A | $678.26M |
| CGC | Canopy Growth | $0.41 | N/A | $298.14M |
| ACB | Aurora Cannabis Inc | $0.493 | N/A | $185.67M |
| HEXO | HEXO | N/A | $ |
Source: Xignite
*All stocks and price information in the chart presented above is as of July 28, 2023 and shows the list of companies with a market cap of over 50M along with their dividend. The data is as off July 28, 2023 . This chart is provided solely for informational purposes and should not be considered investment advice.
Explore Cannabis stocks on Public
Build and diversify your portfolio with cannabis companies across the supply chain
Cannabis investing can be an exciting industry due to several factors. The increasing acceptance of medical marijuana and the growing demand for cannabis products have led to substantial revenue growth in the industry. As more states and countries legalize recreational marijuana, the market potential for cannabis sales expands further. This trend has the potential to present a compelling investment case for cannabis stocks. Cannabis producers and manufacturers are establishing cultivation sites and production facilities to meet the rising demand. Furthermore, with the potential for federal legalization, institutional investors are increasingly interested in the cannabis business, contributing to the growth of the industry and providing an opportunity for additional investors to participate in this emerging market. However, it is crucial to consider the legal landscape, as federal marijuana laws can impact the industry’s long-term prospects. Conducting thorough research and analysis before investing in specific marijuana companies is essential to make informed investment decisions.
As more countries legalize marijuana for both medical and recreational use, demand for cannabis-related products such as cannabis extracts, medicinal cannabis products may increase. As the cannabis industry matures, the establishment of cannabis retailers, operators, and growers can potentially lead to stock price fluctuations. Additionally, there is growing interest from institutional investors, which may impact the liquidity of the market.
However, investing in cannabis stocks carries its own risks. The industry is still in its early stages and there are no guarantees that any particular company will be a success. Additionally, federal marijuana laws remain murky and could change at any time, creating uncertainty for investors.
Before investing in cannabis stocks, it is important to do your research and understand the risks involved.
Before you open a free brokerage account, it’s best to research and compare your options. Public is a commission-free brokerage that doesn’t require a minimum investment. It’s quick to sign up, and unlike other brokerages, we don’t participate in payment for order flow (PFOF)—which means we don’t sell your trades to market makers or third parties. Instead, we route all orders directly to the exchanges and other execution venues.
There are many ways to fund a brokerage account, most commonly by linking a bank account to deposit and withdraw settled cash. You can also use a debit card, check, or wire transfer to fund your account. At Public, we have partnered with Plaid, the nation’s largest bank connection provider, to make funding your account easy. You also have the option to set up recurring deposits and make investing even more of a routine.
Before investing in any stock, it’s important to consider factors such as the financial health of the company, regulatory environment, market trends, and overall economic conditions.
You can find this information on the company’s website or on financial news websites. Alternatively, you can use Public Premium, which offers company-specific insights and metrics from leading analysts.
Once you’ve determined your investment candidates, if you are using Public, simply tap the assets and choose how much you’d like to buy. Public offers fractional investing, so you can invest in stocks and ETFs with any dollar amount.
On Public, you can automate your theme-focused investing strategy with a personalized Investment Plan to consistently purchase more shares on a recurring basis. Add up to 20 stocks or ETFs to your self-created Plan, and decide how much and how often you want to invest in your plan. Build your portfolio with daily, weekly, biweekly, or monthly contributions, and choose whether you’d prefer to evenly distribute funds, or create a custom allocation that supports your investing strategy.
If you need help narrowing down your selection, we’re soon launching pre-created Investment Plans that may allow you to gain exposure to a mix of stocks and ETFs for a certain theme.
Explore Cannabis stocks on Public
Build and diversify your portfolio with cannabis companies across the supply chain
Potential for Growth: The cannabis industry’s rapid expansion opens up numerous opportunities for businesses and investors. As the market continues to evolve, companies can position themselves to benefit from the increasing demand for cannabis products and services. This growth is projected to continue in the coming years, with the U.S. cannabis market alone estimated to reach $72 billion annually by 2030.
Potential for Returns on Investment The cannabis industry may have the potential for high returns on investment. Not just for investors but also regions that have legalised it in the form of buoyant tax revenues. As more states and countries legalize cannabis, cannabis growers and the market potential expands, leading to increased opportunities for profitable investments.
Diversification of Investment Portfolio: By investing in a growing and evolving sector, investors might reduce risk by spreading their investments across multiple industries. Diversification can potentially enhance returns and reduce the impact of market fluctuations. Diversification does not assure profit or eliminate risk. Incorporating cannabis-related investments can provide exposure to an emerging market sector with its unique growth potential.
Market Potential with Legalization: The legalization of cannabis in more states and countries increases the market potential for the industry. As additional regions legalize cannabis for medical or recreational use, it opens up new markets and expands the consumer base. This increased market potential can translate into greater opportunities for businesses and investors to capitalize on the growing demand
Explore Cannabis stocks on Public
Build and diversify your portfolio with cannabis companies across the supply chain
Volatility and Uncertainty: The cannabis industry remains volatile and uncertain due to several factors. Regulatory changes, market fluctuations, and evolving public opinion can significantly impact the industry. The shifting legal landscape and varying regulations across states and countries contribute to the uncertainty surrounding the industry. Such volatility can make it challenging to predict long-term stability and success, necessitating careful analysis and risk management for investors.
Incomplete Legalization: While cannabis legalization has made significant progress in many states and countries, it may not happen universally. The pace and extent of legalization vary, with some regions maintaining strict prohibitions for recreational cannabis use. This fragmented legal landscape can limit the market potential for cannabis companies, making it difficult for businesses to expand and operate on a broader scale
Regulatory Changes and Stock Prices: Regulatory changes in the cannabis industry can have a direct impact on stock prices. Alterations in regulations related to licensing, taxation, and product standards can affect the profitability and operations of cannabis companies. Investors must stay updated with changing regulations and legal status to assess the potential risks and opportunities associated with specific investments.
Limited Established Companies: The cannabis industry is still relatively young, and there is a limited number of established companies to invest in. While there are some prominent players in the market, the majority of cannabis companies are relatively new and may lack a proven track record. This can make it challenging for investors to identify stable and reliable investment opportunities.
In conclusion, investing in cannabis stocks has the potential to be a high-risk, high-reward opportunity. The industry is still relatively new and evolving, with changing regulations and consumer attitudes. It’s important to do thorough research on specific companies and their financials, as well as keeping an eye on industry trends and market conditions.
While there is potential for significant growth and profits, there is also the possibility of significant losses. It’s important to carefully consider one’s risk tolerance and investment goals before investing in cannabis stocks.
At Public, we believe that investing should be accessible and easy for everyone. That’s why we offer a user-friendly platform that allows you to buy and sell stocks, ETFs, Treasuries, crypto, and alternative assetsall in one place. Sign up today and continue your journey toward financial freedom.
