Cannabis Stocks are Trendy – Are They Worth It?

Cannabis consumers and non-consumers alike are both heavy investors in cannabis stocks. Good bets are good bets, after all. Being monetarily part of a booming market does not mean, however, that investing in marijuana is a one-step situation.

Rather, many benefits come from paying attention to all aspects of this ever-evolving industry. For example, Terrance Cole was nominated in March of this year and recently approved by the Senate Judiciary Committee to lead the Drug Enforcement Administration (DEA). The full Senate will now need to vote on Cole’s confirmation.

This is important to cannabis investments, as Cole has noted rescheduling is a “top priority” and has undertaken to address a Biden-era proposal to move cannabis to Schedule III from Schedule I under the Controlled Substances Act (CSA). There is no promise of positive action, but by keeping abreast of changes in this realm, investors can decide wisely.

Tips for Choosing the Best Cannabis Stocks

For those who are interested in investing in marijuana stocks, the professionals have some tips to begin the process:

1. 1. Understand the cannabis industry. Cultivation and Production, Biotechnology Companies, Medical and Recreational Retailers, and Ancillary Services are all divisions with specific opportunities as well as unique risks.
   2. Research market trends and regulatory frameworks. As mentioned above, paying attention to new regulations, on the state and federal level, is the most telling way to decide which cannabis stocks to buy and which direction the market is heading.
   3. Analyze cannabis stocks. The best cannabis stocks one day may not be the best weed stocks the next. Thorough analysis of potential investments can save a lot of heartache. Consider financial health, market position, compliance and the leadership team across different segments of the cannabis industry to mitigate risks.
   4. Assess all risks and rewards. Competition versus growth is one example of how stock can ebb and flow.

• Choose the right investment platform.

1. Consider both domestic and global options. Each year brings more legalization in the U.S., and countries such as Canada, Mexico, Uruguay, Malta and South Africa have legalized weed. Fortune Business insights anticipate a compound annual growth rate (CAGR) of close to 33%, which would put the global cannabis market size at USD $97.35 billion by the end of 2026.
2. Partner with industry experts. Having a second set of eyes on the market and upcoming impactful events is invaluable. Consider groups who have been investing in marijuana for many years.

Once all the preparation is complete, most people work with a broker to invest in marijuana stocks. In this process, shares or stocks are bought directly in companies that operate within the cannabis industry. Cannabis ETFs (exchange-traded funds) are another route; here investment funds are traded on stock exchanges, which is similar to stocks. A cannabis ETF holds assets in various companies within the industry, providing diversified exposure to the cannabis sector. There are pros and cons to both methods.

Top Cannabis Stocks and ETFs to Watch in 2025

As of Summer 2025, here are some of the top performing weed investments, in no particular order, according to U.S. News, Nerd Wallet and Kiplinger:

• Green Thumb Industries Inc. (ticker: OTC: GTBIF), which does MSO cultivation, manufacturing and dispensing.
• Tilray Brands Inc. (TLRY), a Nasdaq-listed purveyor of recreational weed, beverages, spirits, wellness products.
• Trulieve Cannabis Corp. (OTC: TCNNF), which does MSO cultivation, manufacturing and retail.
• Innovative Industrial Properties Inc. (IIPR), which handles commercial REIT and leases for cannabis operators.
• Chicago Atlantic Real Estate Finance Inc. (REFI), which handles commercial REIT tied to cannabis companies.
• AdvisorShares Pure US Cannabis ETF (MSOS), U.S. cannabis-related businesses.
• Amplify Alternative Harvest ETF (MJ), global medicinal and recreational weed businesses.
• Turning Point Brands Inc. (TPB), a manufacturer, marketer and distributor of branded consumer products including smoking accessories and consumables.
• WM Technology Inc. (MAPS), a technology solutions provider to the cannabis industry.
• Village Farms International Inc. (VFF), a supplier of plant-based consumer packaged goods.
• Jazz Pharmaceuticals plc (JAZZ), a global biopharmaceutical company.
• British American Tobacco (BTI), a multinational company invested in the Canadian cannabis market.
• Cambria Cannabis ETF (TOKE), U.S. cannabis-related businesses.

Learn More About Cannabis Investments

CannaCon is the nation’s leading business-to-business cannabis conference. Our goal is to grow the cannabis industry by educating cannabis business owners on all things related to cannabis and CBD. CannaCon trade shows feature a large exhibition hall with exhibitors from around the country and expert seminars. Get a pulse on cannabis investments and cannabis stocks to explore. Click on B2B Cannabis Events to register for a CannaCon this year!

Originally posted December 31, 2019