In this article, we will be taking a look at the 12 cheap pot stocks to buy according to hedge funds.
Cannabis stocks have seen a great deal of volatility, with several large companies seeing declines of 65% or more over the previous three years. “This volatility is likely to define the cannabis sector in 2025,” said Anthony Coniglio, CEO of NewLake Capital Partners. “The news cycle will continue to drive trading volumes, as investors are eager to profit from any upward price movement, resulting in recurring cycles of rallies and pullbacks,” he stated.
Some analysts continue to have positive predictions for a few cannabis companies. Seaport Global Securities’ Sonny Randhawa started covering a number of cannabis stocks because he thinks a different situation might materialize. “With budgets constrained, we believe new customer penetration rates could accelerate as consumers spend more time at home and the bang-per-buck for cannabis vs. alcohol keeps moving higher,” he said, giving buy ratings to three key equities.
According to Jordan Tritt, CEO of the cannabis market intelligence company BDSA, new adult-use markets going online will be the main source of development in the cannabis industry over the next five years. “Established companies that have the resources to capture this growth” is his recommendation to investors.
The regulatory environment is another potential driver of the cannabis market’s expansion. Reclassifying cannabis from Schedule I to Schedule III, for example, may counteract IRS Rule 280E, which presently forbids the deduction of operating expenses, and increase the cash flows of cannabis companies by tens of millions, according to industry observers.
A laboratory with white-coated technicians carefully measuring out cannabis extracts.
Our Methodology
For our methodology, we selected pot stocks from Green Stock News’s Cannabis Stocks list and ranked them based on the number of hedge funds holding each stock, using data from Insider Monkey’s database for Q1 2025. In cases where multiple stocks had the same number of hedge fund holders, we used their price-to-earnings (P/E) ratios as a tiebreaker, favoring the stock with the lower P/E.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Here is our list of the 12 cheap pot stocks to buy according to hedge funds.
12. Flora Growth Corp. (NASDAQ:FLGC)
Number of Hedge Fund Holders: 1
Flora Growth Corp. (NASDAQ:FLGC) is among the cheap pot stocks to buy. It is a global cannabis company headquartered in Fort Lauderdale, Florida, operating in over 15 countries. It offers a wide range of products, including pharmaceuticals, CBD wellness goods, food and beverages, and THC-infused products through a vertically integrated model.
In 2025, Flora Growth Corp. (NASDAQ:FLGC) made a strategic move into digital assets, investing $1 million across Ethereum, Solana, Sui, and Ripple. CEO Clifford Starke highlighted this step as a push toward Web3 innovation and long-term value creation, with more digital ventures expected. This unique approach in the cannabis sector marks the company as a forward-thinking player, aligning itself with emerging digital trends.
The business is also rapidly expanding its THC-infused beverage operations. It appointed Sammy Dorf, co-founder of Verano Holdings, as Executive Chairman to lead product growth. New brands like “Melo” and “Cloud Cola” have launched in major U.S. retail outlets, supported by a new facility and partnerships with distributors such as Sunshine State Distributing. These efforts aim to capture the growing demand as more states legalize THC beverages.
Internationally, Flora Growth Corp. (NASDAQ:FLGC) is entering Germany’s cannabis pilot program with a supply agreement via Curaleaf and the appointment of Dr. Manfred Ziegler to lead regional operations. This move positions the corporation to capitalize early on Europe’s emerging legal cannabis market.
At its 2025 shareholder meeting, Flora Growth Corp. (NASDAQ:FLGC) approved key changes, including increasing its incentive plan share cap and authorizing a reverse stock split to enhance market flexibility. New board members were also elected to support growth in wellness, beverages, and digital assets.
11. Greenlane Holdings, Inc. (NASDAQ:GNLN)
Number of Hedge Fund Holders: 1
Greenlane Holdings, Inc. (NASDAQ:GNLN) is a leading distributor of premium cannabis accessories, packaging, and vaporization products, operating through wholesale and direct-to-consumer channels across North America and internationally. In 2025, the company has strategically expanded beyond cannabis into the health and wellness sector, signaling a shift toward diversified, socially relevant offerings.
In July 2025, Greenlane Holdings, Inc. (NASDAQ:GNLN) became the exclusive fulfillment partner for Safety Strips Tech Corp.’s new e-commerce store, distributing ToxiShield products designed to detect fentanyl and drink tampering. This move aligns with growing public demand for harm reduction solutions and highlights the company’s pivot into health-focused technologies.
Also in July, the business selected JointCommerce as its B2C digital marketing platform, aiming to enhance its online presence through compliant and targeted cannabis marketing. This initiative is expected to improve consumer engagement and drive e-commerce growth across its retail platforms, including vapor.com.
Earlier in May, the corporation signed a U.S. distribution agreement with Greentank Technologies, a vape innovation leader known for its award-winning Quantum Chip vaporizers. The deal strengthens the company’s position in the vaporization space by offering advanced, research-driven products through its well-established sales channels.
Additionally, Greenlane Holdings, Inc. (NASDAQ:GNLN) integrated its wholesale platform with Mainstem’s B2B procurement marketplace to streamline inventory management, improve supply chain coordination, and enhance data-driven retail decisions. This tech-driven approach supports greater operational efficiency and retailer reach.
10. Agrify Corporation (NASDAQ:AGFY)
Number of Hedge Fund Holders: 2
Agrify Corporation (NASDAQ:AGFY) is transitioning from its roots in cultivation technology to a consumer-focused model centered on hemp-derived THC beverages. The company, known for its vertical farming units (VFUs) and cultivation software, recently sold its cultivation business and related assets to CP Acquisitions LLC, linked to former CEO Raymond Chang. This move allows the company to streamline operations and shift focus toward the rapidly growing THC beverage market.
A key part of this pivot is the acquisition of Señorita, an award-winning hemp-derived THC beverage brand known for flavors like Mango Margarita and Lime Jalapeño Margarita. Distributed in nine U.S. states and Canada, the brand aligns with rising consumer interest in low-calorie, alcohol-free cannabis alternatives. Agrify Corporation (NASDAQ:AGFY) is increasingly mentioned among cheap pot stocks to buy due to its low market valuation and growth potential in this segment. The company plans to expand the product line with new offerings such as Paloma and Ranch Water.
To support this new direction, the business raised $25.9 million in a private placement in late 2024, with Chairman and Interim CEO Ben Kovler personally participating, signaling leadership’s confidence in the strategy. The funding will help scale beverage operations and explore additional cannabis product opportunities.
Governance changes also reflect the company’s new consumer focus. Peter Shapiro, with entertainment industry experience, and Sanjay Tolia, a cannabis investor, joined the board in early 2025, bringing expertise in branding and market growth.
