![]() ![]() Possession and sale of marijuana is against federal law in the U.S., while only four states have maintained complete legal prohibition of cannabis. These include legal and political risks, as well as other unconventional financial constraints. Owning cannabis stocks is associated with some unusual risks that investors need to clearly understand. Before you decide to purchase any of these stocks, do plenty of research to ensure they are aligned with your financial goals and risk tolerance. Please note that the stocks above were selected by an experienced financial analyst, but they may not be right for your portfolio. To learn more about our rating and review methodology and editorial process, check out our guide on how Forbes Advisor rates investing products. Several of the stocks are listed in both Canadian and U.S. We have also excluded any companies that generated sales under $50 million last year. While the companies are all small, we have used a $100 million market cap floor for this list. Two exceptions to this rule are Verano Holdings, which does not have sales data going back that far, and Curaleaf, which has delayed its 2022 earnings. Most do not make profits, and hence we have limited our search to companies showing positive and growing sales revenue over the last three years, which is often used as a backup for profit. Tangible exposure to or investment in the cannabis industry.Ĭannabis companies represent highly risky growth stocks.Positive and growing revenue over the last three years.The stocks chosen for this list include eight cannabis stocks that trade publicly on North American stock exchanges and meet the following requirements: Just be warned, this stock is no stranger to volatility. ![]() Today, it represents a more interesting case, with a more reasonable price/sales ratio. With a 17.8% increase in revenue last year, the 88% fall looks stark in contrast, but it paints a picture of a stock that was overvalued even compared to its cannabis rivals. However, this comes off the back of a crushing 88% freefall last year-meaning those gains came from a far lower base. It was the only stock on this list to rise during that period, and it rose an impressive 34% at that. The potential move to TSX, however, helped TerrAscend achieve standout performance in Q1 of 2023. TerrAscend currently trades as an ADR on the U.S. Given the federal cannabis ban, a listing on the TSX has been a hurdle for most American companies. company to be listed on the Toronto Stock Exchange (TSX), if a restructuring plan wins TSX approval. It is listed on the CSE, and it could soon become the first U.S. TerrAscend Corp is a U.S.-based multistate cannabis operator. Investors need to be sure their brokerage account allows OTC trading before investing in CURLF. However, its stock is listed on the Canadian Securities Exchange (CSE). GAAP to IFRS conversion for reporting standards led to the delay.ĭespite the collapse in its share price, Curaleaf remains one of the largest publicly traded cannabis stocks by market cap, and its revenue is higher than any other company on this list.īut its Q1 performance, where it fell 44%, shows that even the bigger names in this sector are highly risky.Ĭuraleaf is an American company based in Wakefield, Mass. In March, Curaleaf also delayed its fourth quarter earnings, stating that complexities with the U.S. Not only is the stock down significantly over the last two years, but it plunged an additional 10% in April, following disappointing news that New Jersey’s regulator declined to renew the company’s annual license. Nothing sums up the struggles of the cannabis industry like Curaleaf. ![]()
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