11 Best Cannabis Stocks To Buy Now

Published November 26, 2023 at 6:27 am EST Updated August 31, 2026 at 8:47 pm EDT

In this article, we discuss 11 best cannabis stocks to buy now.

Cannabis, a flowering plant genus, boasts a rich history of utilization, primarily for its acknowledged therapeutic and medical benefits. Presently, over 52 million Americans engage with cannabis, and the trend toward legalization appears unstoppable, given the increasing number of states endorsing both recreational and medical usage. This momentum aligns notably with the Biden administration’s initiative to reclassify marijuana. Shifting it from a Schedule 1 controlled substance, characterized by having no accepted medical use and a high potential for abuse, to Schedule 3—reserved for drugs with moderate to low potential for physical and psychological dependence—reflects a noteworthy step in recognizing the evolving landscape of cannabis use in the United States.

The U.S. Cannabis market is on an upward trajectory, set to surge by $46.90 billion from 2022 to 2027. Fueled by a compelling Compound Annual Growth Rate (CAGR) of 24.03%, the industry is experiencing a significant shift propelled, in part, by the rise in medical cannabis dispensaries and an increasing awareness of the health advantages linked to medical marijuana. The primary force behind this growth, however, is the millennial demographic, the largest population in the U.S., which is propelling the market forward through their keen interest in a variety of cannabis products, especially for recreational purposes.

On the other hand, profitability remains an elusive goal for the cannabis industry due to persistent challenges. According to Hub International’s 2023 Outlook, issues such as disruptions in the supply chain, product recalls, regulatory hurdles, and economic hardships underscore the necessity for comprehensive risk management strategies to alleviate the adverse effects of these challenges. The sector is contending with mounting inflation and escalating costs for essential resources like fertilizer, building materials, and packaging, exerting a detrimental impact on its financial viability. Despite these pressures, cannabis companies are hesitant to increase prices in a fiercely competitive market. Notably, in the first half of 2022, more than 20 of the largest publicly traded cannabis companies collectively suffered losses totaling around $550 million, despite generating revenues nearing $4.5 billion. Navigating and adapting to the diverse legal frameworks across states also present challenges for both businesses and consumers alike.

With that said, the acceptance and normalization of cannabis are steadily increasing, with each mainstream reference and recognition contributing to the erosion of opposition toward federal legalization. Despite variations in political predictions, the normalization of cannabis represents a significant opportunity for operators, brands, and markets to expand their presence in 2023. Investors looking to benefit from the growing opportunities in the cannabis industry can look at some of the best cannabis to buy, which include Jazz Pharmaceuticals plc (NASDAQ:JAZZ), The Scotts Miracle-Gro Company (NYSE:SMG), and Tilray Brands, Inc. (NASDAQ:TLRY).

Photo by terre-di-cannabis on Unsplash

Our Methodology

To create our selection of the best cannabis stocks for investment, we began by assembling a roster of companies that are actively involved in the provision of cannabis and cannabis-related products. Subsequently, we identified the number of hedge funds that retained these stocks in their portfolios as of Q3 2023.

11. Leafly Holdings, Inc. (NASDAQ:LFLY)

Number of Hedge Fund Holders: 2

Leafly Holdings, Inc. (NASDAQ:LFLY) stands out as a premier platform in the cannabis industry, facilitating connections between consumers and local dispensaries, delivery services, and brands. Operating in 28 states and 10 countries, the company caters to a vast audience, drawing in over 125 million visitors each month. In addition, Leafly’s network encompasses 18,000 licensed cannabis businesses, solidifying its position as a comprehensive and widely utilized resource in the cannabis marketplace.

Leafly Holdings, Inc. demonstrated robust financial performance in the second quarter of 2023. The company reported a revenue of $10.68 million, showcasing a noteworthy 29% year-over-year increase. Furthermore, the net loss of $1.44 million marked a significant 71% year-over-year decrease. Notably, these bottom-line results exceeded expectations, with Leafly Holdings, Inc. consistently surpassing analysts’ estimates for earnings per share (EPS) over the past four quarters.

According to Insider Monkey’s third quarter database, 2 hedge funds were long Leafly Holdings, Inc., compared to 4 funds in the preceding quarter.

Much like Jazz Pharmaceuticals plc (NASDAQ:JAZZ), The Scotts Miracle-Gro Company, and Tilray Brands, Inc., Leafly Holdings, Inc. is one of the best cannabis stocks to look out for.

10. Village Farms International, Inc. (NASDAQ:VFF)

Number of Hedge Fund Holders: 4

Village Farms International, Inc. (NASDAQ:VFF) operates as a vertically integrated provider of plant-based consumer packaged goods in the cannabis and cannabidiol (CBD) sectors, serving markets in North America and select international regions. The company is organized into distinct segments, namely Produce, Cannabis Canada, Cannabis United States, and Energy.

The Vancouver-based agriculture company, specializing in controlled-environment farming, reported a net loss of $1.3 million, or $0.01 share, showing improvement from a loss of $12.3 million in the previous year. Although consolidated sales dipped by 2% to $69.5 million, the enhanced bottom line suggests positive outcomes from the company’s strategic shift towards higher-margin cannabis and recovery in the produce sector. Traditionally recognized for its produce, the company has redirected much of its growth strategy toward expanding its Canadian cannabis segment. The successful introduction of the Fraser Valley brand in Ontario has yielded positive results, capturing a considerable market share by targeting cost-conscious consumers amid industry-wide price compressions.

Israel Englander’s Millennium Management was a significant shareholder of the company at the end of the third quarter, holding 209,995 shares worth roughly $167,471. A total of 4 hedge funds were long the stock at the end of Q3.

9. Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM)

Number of Hedge Fund Holders: 6

Hydrofarm Holdings Group, Inc. (NASDAQ:HYFM) is actively involved in the production and distribution of equipment and supplies tailored for controlled environment agriculture in both the United States and Canada. The company’s extensive product line includes agricultural lighting devices, indoor climate control equipment, as well as nutrients and plant additives. These offerings are designed for the cultivation of diverse crops, spanning cannabis, flowers, fruits, plants, vegetables, grains, and herbs, all within controlled environments. Recognized as a leader in hydroponics, Hydrofarm presents itself as one of the best cannabis stocks in the industry.

In June of this year, Hydrofarm Holdings Group, Inc. forged an exclusive strategic alliance with CEA Advisors, aiming to expedite their entry into the dynamic Controlled Environment Agriculture (CEA) sector, encompassing both food and non-food production. Hydrofarm’s commercial division, Innovative Growers Equipment (IGE), is designated as the North American hub for manufacturing and marketing Growtainers and Growracks. Situated in Sycamore, Illinois, IGE’s facility integrates manufacturing, research and development, and warehouse operations to cater to the global market.

According to Insider Monkey’s third quarter database, 6 hedge funds were bullish on Hydrofarm Holdings Group, Inc., compared to 5 funds in the prior quarter. Michael Zimmerman’s Prentice Capital Management is a significant position holder in the company, with 464,108 shares worth $566,212.

8. Aurora Cannabis Inc. (NASDAQ:ACB)

Number of Hedge Fund Holders: 7

Aurora Cannabis Inc. (NASDAQ:ACB) is a company that specializes in the production, distribution, and sale of cannabis and cannabis-derived products, operating both within Canada and on the international stage. The company has a dual focus on catering to both the medical and consumer segments of the cannabis market within Canada, reflecting a comprehensive approach to serving diverse needs and markets in the evolving cannabis industry.

In the second quarter of 2023, Aurora Cannabis Inc. reported a noteworthy financial turnaround, with earnings of $256,000 compared to a loss of $45.5 million in the same period the previous year. The Edmonton-based cannabis company revealed a substantial increase in net revenue for the quarter, reaching $63.4 million compared to $48.6 million in the corresponding quarter a year ago. Aurora Cannabis Inc. attributes this positive shift to the expansion of its global medical cannabis business and increased revenue in its plant propagation business. This indicates a strategic focus on both the medical sector and the plant propagation aspect of its operations, contributing to the company’s improved financial performance during the reported quarter.

According to Insider Monkey’s Q3 database, 7 hedge funds were bullish on Aurora Cannabis, the same as the prior quarter. Israel Englander’s Millennium Management is a significant position holder in the company, with 1.62 million shares worth $949,839.

7. GrowGeneration Corp. (NASDAQ:GRWG)

Number of Hedge Fund Holders: 7

GrowGeneration Corp. (NASDAQ:GRWG) operating in the hydroponic and organic gardening retail sector in the United States, engages in the sale and marketing of various products, including nutrients, lighting, environmental control systems, and accessories for hydroponic gardening, catering to both indoor and outdoor growing needs. The primary customer base comprises commercial and urban cultivators involved in growing specialty crops such as organic greens and plant-based medicines.

GrowGeneration Corp. released its earnings report for the third quarter of 2023 on November 8. In the third quarter, the company reported sales of $55.68 million, a decrease from $70.85 million recorded in the same period the previous year. On the other hand the company posted revenue of $55.7 million in the period, topping Street forecasts.

According to Insider Monkey’s data, 7 hedge funds were bullish on GrowGeneration Corp. at the end of the third quarter of 2023, the same as the prior quarter. The collective stakes in Q3 2023 amounted to $3.23 million.

6. Cronos Group Inc. (NASDAQ:CRON)

Number of Hedge Fund Holders: 8

Cronos Group Inc. (NASDAQ:CRON) stands out as a notable force in the realm of cannabinoids, specializing in the creation and distribution of top-tier cannabis products within Canada and on a global scale. The company distinguishes itself by prioritizing the development of innovative technologies, brands, and formulations tailored for both medical and recreational markets. A noteworthy aspect of Cronos Group Inc. is its close association with Altria Group, a heavyweight in the tobacco industry, as it maintains a significant stake of approximately 41% in the company.

In the third quarter of 2023, Cronos Group Inc. reported a revenue of $24.8 million, reflecting a robust 22% year-on-year growth. This positive revenue trajectory is credited to the successful introduction of new products, a rise in sales volume, and a modest increase in prices. Notably, Cronos Group Inc. has demonstrated an impressive performance in the EPS category, consistently surpassing analysts’ expectations over the past three quarters. With a market capitalization of $712 million, Cronos Group Inc. holds a relatively higher position compared to some of its counterparts in the cannabis industry.

According to Insider Monkey’s third quarter database, 8 hedge funds were long Cronos Group Inc., compared to 6 funds in the last quarter. Traci Lerner’s Chescapmanager LLC held the biggest stake in the company, comprising 8.32 million shares worth $16.65 million.

In addition to Jazz Pharmaceuticals plc (NASDAQ:JAZZ), The Scotts Miracle-Gro Company, and Tilray Brands, Inc., Cronos Group Inc. ranks as one of the best cannabis stocks to buy now.

5. Innovative Industrial Properties, Inc. (NYSE:IIPR)

Number of Hedge Fund Holders: 16

Innovative Industrial Properties, Inc. (NYSE:IIPR) concentrates on the acquisition, ownership, and management of specialized properties, which are subsequently leased to seasoned operators possessing state licenses for their regulated medical-use cannabis facilities. The company’s primary focus lies in offering real estate solutions tailored for the cannabis industry.

In the latest quarter ending on September 30, Innovative Industrial Properties, Inc. maintained its strong performance, reporting a net income of $41.3 million on revenues of $77.8 million. Both of these crucial indicators exhibited a roughly 10% year-over-year increase and showed sequential growth from the previous quarter, Q2, during which IIP recorded a $40.9 million profit on $76.5 million in revenue. For the year 2023 thus far, Innovative Industrial Properties, Inc. has generated $228.7 million in revenue and achieved a net income of $122.9 million.

According to Insider Monkey’s first quarter database, 16 hedge funds were long Innovative Industrial Properties, Inc., the same as the prior quarter. Stuart J. Zimmer’s Zimmer Partners is the largest stakeholder of the company, worth $86.52 million.

4. Tilray Brands, Inc. (NASDAQ:TLRY)

Number of Hedge Fund Holders: 17

Tilray Brands, Inc. is as an American pharmaceutical, cannabis-lifestyle, and consumer packaged goods company. It is incorporated in the United States and headquartered in New York City. Tilray has a multinational presence with operations in Canada, Australia, New Zealand, and Latin America. The company also operates growing facilities in Germany and Portugal.

In its first-quarter results released in October, Tilray Brands, Inc. disclosed record revenues of $177 million and emphasized that, despite recent portfolio diversification, cannabis remained a core focus. The Canadian cannabis giant reported a 15% year-on-year and 9% sequential growth in net revenues, attributing this success to a robust performance in its cannabis division. Specifically, net cannabis revenues experienced a 20% increase, reaching $70 million for the three months ending on August 31, 2023. This growth propelled Tilray Brands, Inc. to hold a 13.4% share of the Canadian recreational cannabis market, establishing itself as the market leader. Additionally, the company’s alcoholic beverage arm, expanded significantly over the past year, also demonstrated a 17% year-on-year revenue increase, reaching $24 million.

According to Insider Monkey’s third quarter database, 17 hedge funds were long Tilray Brands, compared to 15 funds in the earlier quarter. Hudson Bay Capital Management is a prominent stakeholder of the company.

3. The Scotts Miracle-Gro Company (NYSE:SMG)

Number of Hedge Fund Holders: 17

The Scotts Miracle-Gro Company is involved in the production, promotion, and distribution of products related to lawn and garden care, as well as indoor and hydroponic gardening. The company has applied its expertise in horticulture and gardening to develop innovative technologies and solutions specifically tailored for cannabis cultivation. This includes the creation of advanced lighting systems, hydroponic equipment, and other tools aimed at optimizing growing conditions and enhancing crop yields. In early November, The Scotts Miracle-Gro Company made an announcement indicating that it was actively engaged in discussions regarding the creation of a vertically integrated cannabis company. This strategic move was part of the company’s exploration of various alternatives for Hawthorne Gardening Company, its subsidiary specializing in products for cannabis cultivation.

According to Insider Monkey’s first quarter database, 17 hedge funds were bullish on The Scotts Miracle-Gro Company, compared to 28 funds in the prior quarter. Paul Marshall And Ian Wace’s Marshall Wace LLP is a prominent stakeholder of the company, with 445,167 shares worth $23 million.

2. Bausch Health Companies Inc. (NYSE:BHC)

Number of Hedge Fund Holders: 31

Bausch Health Companies Inc. (NYSE:BHC) is a Canadian multinational specialty pharmaceutical company headquartered in Laval, Quebec, Canada. It was previously known as Valeant Pharmaceuticals International, Inc. The company is known for selling Cesamet, a synthetic form of cannabis utilized in the treatment of nausea and vomiting in chemotherapy patients. In addition to Cesamet, Bausch Health Companies Inc. has a diverse product portfolio, encompassing generic pharmaceuticals, medical devices, and over-the-counter products like eye drops. The company’s diversified applications of cannabis position it favorably to potentially benefit as the cannabis industry continues to expand and evolve.

Insider Monkey’s Q3 2023 survey covering 910 hedge funds revealed that 31 were Bausch Health Companies Inc.’s shareholders. John Paulson’s Paulson & Co is the biggest investor among these since it has invested $217.3 million in the pharma company.

1. Jazz Pharmaceuticals plc (NASDAQ:JAZZ)

Number of Hedge Fund Holders: 40

Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is a biopharmaceutical company committed to advancing research, development, and worldwide distribution of pharmaceutical products and immunotherapies to meet unaddressed medical needs. Leveraging its GW Cannabinoid Platform, Jazz Pharmaceuticals plc (NASDAQ:JAZZ) is a key player in the realm of cannabinoid science.

Jazz Pharmaceuticals plc (NASDAQ:JAZZ) unveiled its financial performance for the third quarter of 2023 on November 8, demonstrating strong results with total revenues hitting $972 million. Notably, the company’s primary growth catalysts—Xywav, Epidiolex, and Rylaze—experienced a collective revenue surge, marking a noteworthy 24% increase year-over-year.

According to Insider Monkey’s third quarter database, 40 hedge funds were bullish on Jazz Pharmaceuticals plc (NASDAQ:JAZZ), down from 44 funds in the last quarter. Robert Pohly’s Samlyn Capital held the largest position in the company, with 1.35 million shares worth $175.88 million.

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