With the rising public acceptance of cannabis, this risky asset class presents a fantastic opportunity for your stock portfolio to develop.The global legal cannabis industry is expected to reach $84 billion in value by 2028. With such remarkable growth anticipated, it’s unsurprising that many investors are interested in cannabis stocks.
With that being said, you might ask yourself, how do I know which cannabis stocks to invest in? Follow along to learn some of the top suggestions from industry experts.

Top Cannabis Stocks as Recommended by Forbes
Green Thumb Industries
Green Thumb Industries (OTC:GTBIF) owns and runs retail cannabis businesses in 12 states across the United States. Green Thumb is licensed to operate 96 retail cannabis shops but currently operates a little over half of that number.
Trulieve Cannabis
Trulieve Cannabis (OTC:TCNNF) is a cannabis producer and merchant specializing in the medicinal marijuana market in Florida. The firm dominates Florida, accounting for roughly 50% of total cannabis sales, and has been profitable constantly since 2017 – a feat few other marijuana companies can boast. Additionally, its sales and profitability continue to increase.
Innovative Industrial Properties
Cannabis businesses in the United States have significant challenges in obtaining funding from banks and financial institutions, as marijuana remains illegal on a federal level. Innovative Industrial Properties (NYSE:IIPR) assists expanding marijuana enterprises in overcoming their liquidity shortages by purchasing properties held by US medical cannabis entrepreneurs and leasing them back to them. The property sale to IIP offers much-needed capital to the cannabis operator, while the lease terms provide IIP with a regular revenue stream.
Scotts Miracle-Gro
Hawthorne Gardening, a subsidiary of Scotts Miracle-Gro, is a prominent hydroponic gardening product provider to the cannabis market.
Although Hawthorne is the company’s key growth engine, consumer lawn and garden goods still account for well over half of Scotts’ entire revenue.
Jazz Pharmaceuticals
In May 2021, Jazz Pharmaceuticals (NASDAQ:JAZZ) purchased GW Pharmaceuticals, a cannabis-focused biotech business. Epidiolex, a cannabis-based treatment developed by GW Pharmaceuticals, is the first to be authorized by the US Food and Drug Administration (FDA).
Epidiolex, a drug that treats two uncommon types of pediatric epilepsy, is consistently outselling forecasts. With the COVID-19 pandemic, new patient beginnings for Epidiolex slowed marginally, yet the company’s revenue growth remained high.

The Risks of Stocks
In investment, there are several sector-specific and even company-specific risks. However, some common risks that practically every stock confronts include commodity price risk, headline risk, rating risk, obsolescence risk, and model risk.
Risk Specific to Cannabis Stocks
- In the grand scheme of things, the cannabis industry is new. As a result, many companies are relatively small, falling into the classification of penny stocks, which is hazardous for investors, particularly novices.
- Speculative bet: Despite the industry booming, there’s no guarantee that stocks will perform well.
- The financial services industry has not yet embraced cannabis as a legitimate industry.
Bottom Line
To be successful in purchasing cannabis stocks, you must do your due diligence in researching each and every company in order to make an informed decision. If possible, evaluate the company’s financial statements and research their management team to give you a better picture of who you’re investing in.
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