10 Best Tobacco and Cigarette Stocks to Buy Now

8. Cronos Group Inc. (NASDAQ:CRON)

Number of Hedge Fund Holders: 16

Market Cap as of April 25: $690.08 million

Cronos Group Inc. (NASDAQ:CRON), with its headquarters located in Toronto, Canada, grows and markets cannabis for both medical and recreational purposes under the Peace Naturals medical brand and the Cove and Spinach recreational brands. The firm’s exports of medical cannabis are mostly to Israel, yet it operates primarily in Canada. The company has the option to purchase a fully diluted 5.9% stake in the U.S. multistate operator PharmaCann upon the easing of federal prohibition. It is ranked eighth on our list of the Best Tobacco Stocks.

Cronos Group Inc. (NASDAQ:CRON) produced impressive results in 2024, growing its annual revenue by 35% year over year due to excellent performance in Israel, Canada, and other international markets. The company’s increased operational efficiency was evident in its adjusted gross margins, which nearly doubled and improved by 12 percentage points for the entire year 2024. Its Spinach brand became Canada’s biggest cannabis brand in terms of market share, with a focus on edibles, flower, and vapes. Furthermore, the company has $859 million in cash and cash equivalents, which puts it in a solid financial position for future growth and expansion.

As a result of successful international development initiatives, especially in Germany and the UK, adjusted EBITDA increased by 45% year over year, showing encouraging growth prospects. Significant R&D progress was also made by Cronos Group Inc. (NASDAQ:CRON), as breeding initiatives and developments in cannabis genetics produced new strains and increased yields of cannabinoids.