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2024 saw the cannabis industry grappling with persistent challenges, mirroring those of the preceding two years. The absence of meaningful regulatory reform in both the US and Canada continues to stifle market growth
There was some positive momentum in the US as new markets entered the industry and the US Drug Enforcement Administration moved to reschedule cannabis from Schedule I to Schedule III; however, subsequent roadblocks suggest the process could take longer than industry hopefuls originally anticipated.
Cannabis companies in the sector continue to move forward and develop their offerings, and with potential catalysts ahead some investors are interested in getting involved. Looking at the key players is often a good place to get started, so this list of US and Canadian cannabis stocks covers the companies with the largest presence in two major cannabis ETFs.
This list of the biggest publicly traded cannabis companies was put together based on the top-weighted cannabis stocks included in the AdvisorShares Pure US Cannabis ETF (ARCA:MSOS) and the Horizons Marijuana Life Sciences Index ETF (TSX:HMMJ) as of December 23, 2024. Share price information for the companies was accurate as of that time.
US cannabis market
Cannabis is federally illegal in the US, but state market openings have allowed some operators to thrive. Typically these firms set up vertically integrated businesses with a focus on branded products, retail networks and licenses.
While these companies have adapted to regulatory challenges, they have much to gain from country-level reform in the US, and are eager to see more welcoming federal laws that will allow their businesses to develop further.
US-focused cannabis fund
The AdvisorShares Pure US Cannabis ETF (ARCA:MSOS) provides exposure to public companies exclusively operating within the US cannabis industry. By investing in companies that are working in states with clear guidelines, MSOS gives investors a way to be more selective about the types of cannabis companies they’re investing in.
1. Green Thumb Industries (CSE:GTII,OTCQX:GTBIF)
ETF weight: 36.3 percentMarket cap: US$1.89 billionShare price: US$7.81
Green Thumb Industries is a multi-state operator (MSO) with headquarters in Chicago, Illinois.
The company is involved in the entire process of the industry, from cultivating and producing cannabis products to selling them in its own retail stores, of which there are many across the United States. Green Thumb Industries owns a portfolio of well-known cannabis brands like Rythm, Beboe, Dogwalkers, Incredibles and Doctor Solomon’s.
2. Trulieve Cannabis (CSE:TRUL,OTCQX:TCNNF)
ETF weight: 18.63 percentMarket cap: US$967 millionShare price: US$4.81
Trulieve is another major player in the cannabis industry, with a strong focus on medical cannabis. The company offers a diverse selection of cannabis products including flower, pre-rolls, concentrates, edibles, topicals and more.
Vertically integrated, Trulieve Cannabis has a dominant market share in its home state of Florida, as well as in Arizona and Pennsylvania. In June 2024, the company opened its 200th dispensary in the United States.
3. Curaleaf Holdings (TSX:CURA,OTCQX:CURLF)
ETF weight: 15.05 percentMarket cap: US$1.1 billionShare price: US$1.50
Curaleaf Holdings has a significant presence in the US cannabis market, with over 150 dispensaries and several cultivation centers across 19 states. The company is also continuing its expansion into the European cannabis sector, where it already has a strong presence. Curaleaf began trading on the Toronto Stock Exchange on December 14, 2023.
4. Verano Holdings (NEO:VRNO,OTCQX:VRNOF)
ETF weight: 8.24 percentMarket cap: US$1.51 billionShare price: US$1.24
Verano Holdings is a vertically integrated cannabis company. It delivers high-quality products out of its 150 Zen Leaf and MÜV retail locations, which are spread across 14 states.
Verano moved from the CSE to Cboe Canada on October 18, 2023, a move to increase the company’s visibility and accessibility to investors, while leaving it in a better position to transition to a US exchange if cannabis is legalized there, according to CEO George Archos.
5. Cresco Labs (CSE:CL,OTCQX:CRLBF)
ETF weight: 6.5 percentMarket cap: US$398.64 millionShare price: US$0.87
Cresco Labs is a vertically integrated multi-state cannabis operator in the United States. A leading US cannabis company, it is known for its strong brands like Cresco, High Supply and Good News.
Cresco Labs controls its supply chain from cultivation to retail, offering a wide range of products. While it has its own stores, it focuses heavily on wholesale, getting its products into dispensaries across the country.
Canadian cannabis market
In 2018, Canada became the first G7 nation to legalize adult-use cannabis and create its own streamlined program regulated by both federal and provincial powers. Since then, companies working in the country have faced ups and downs in dealing with tight marketing rules, high tax rates and ongoing competition with the unregulated market.
Canada-based cannabis fund
The Global X Marijuana Life Sciences Index ETF (TSX:HMMJ) was the first cannabis ETF available in Canada, and it holds a variety of publicly traded companies involved in cannabis, along with several non-flower companies.
While HMMJ does not invest in US-based multi-state operators, it does have exposure to the US market through Canadian companies that have interests in the US cannabis industry. Overall, HMMJ is designed to give investors broad exposure to the cannabis industry, with a particular focus on North American companies.
This ETF had a year-to-date loss of 0.32 percent as of December 23 and a price point of C$9.29.
1. Innovative Industrial Properties (NYSE:IIPR)
ETF weight: 15.74 percentMarket cap: US$2.09 billionShare price: US$70.45
Innovative Industrial Properties is a real estate investment trust that provides specialized real estate opportunities for cannabis companies in 19 states. Its properties mostly consist of processing plants, greenhouses and warehouses, with retail spaces making up a small percentage of its portfolio.
The firm has provided long-term absolute net lease agreements to some of the cannabis industry’s biggest names, including Green Thumb, Tilt Holdings (NEO:TILT,OTCQB:TLLTF), Ascend Wellness (CSE:AAWH.U,OTCQX:AAWH) and Curaleaf. The company’s attractive sale-leaseback program has helped cannabis companies access a source of capital, a much-needed workaround in the US where there are fewer traditional financing options.
2. Jazz Pharmaceuticals (NASDAQ:JAZZ)
ETF weight: 15.05 percentMarket cap: US$7.51 billionShare price: US$124.25
Jazz Pharmaceuticals is a global biopharmaceutical company focused on developing and commercializing medicines for people with serious diseases, often with limited or no other options. They have a diverse portfolio of products in areas like sleep disorders, cancer and epilepsy.
Jazz Pharmaceuticals’ cannabis business stems from their 2021 acquisition of GW Pharmaceuticals and its epilepsy medicine Epidiolex for a whopping US$7.2 billion. This made big waves as it was one of the largest moves by a traditional pharmaceutical company into the cannabis space.
3. Cronos Group (NASDAQ:CRON,TSX:CRON)
ETF weight: 8.03 percentMarket cap: US$768.41 millionShare price: US$2.01
Cronos Group is the Canada-based company behind the Spinach, Peace Naturals and Lord Jones cannabis brands. In Canada, Cronos’ Spinach brand is in the top three for retail sales in the flower, edible and vape categories.
In late 2023, the company re-entered the German medical cannabis market through its partnership with a German medical cannabis company called Cansativa Group, and is positioned to take advantage of potential adult-use legalization in the country. Cronos also serves the Israeli market through its subsidiary Cronos Israel.
4. SNDL (NASDAQ:SNDL)
ETF weight: 4.99 percentMarket cap: US$491.17 millionShare price: US$1.85
SNDL, formerly known as Sundial Growers, is the largest private-sector liquor and cannabis retailer on the Canadian market. They cultivate and sell cannabis products under various brands including Top Leaf, Sundial Cannabis, Palmetto and more. They focus on premium indoor cultivation and have a strong presence in the Canadian market.
SNDL has faced financial challenges in the past, but in Q3 2024 the company’s cannabis business saw revenue gains for the 11th consecutive quarter.
5. Canopy Growth (NASDAQ:CGC,TSX:WEED)
ETF weight: 2.68 percentMarket cap: US$366.89 millionShare price: US$2.87
Canopy Growth is a company that’s grown alongside Canada’s cannabis industry. Founded in 2013, it has become one of the largest producers of cannabis in the world, fostering brand deals with celebrities like Martha Stewart and Snoop Dogg.
The company maintains a strong focus on medical cannabis, with a dedicated division called Spectrum Therapeutics, which offers a variety of products and resources for patients seeking cannabis-based treatments.
FAQs for investing in cannabis
Are cannabis stocks worth investing in?
Each investor will have to think and act for themselves to manage their own risk exposure, but it’s no secret that cannabis stocks have taken a beating for some time now. While financial experts point to the long-term upside of US operators as more state markets expand, the stock market has not been kind to these names lately.
Are cannabis stocks considered a high- or low-risk investment?
Cannabis investments are extremely young in the grand scheme of the investment universe. There is an exciting and refreshing element to these stocks, but the market has always been characterized by volatility and unpredictability.
While wild, spontaneous swings in the open market have become less common, cannabis stocks are often moved — both positively and negatively — by big pieces of market news or legalization updates.
Why do people buy cannabis stocks?
Investors may choose to get exposure to the cannabis market as a way to participate in the development of a new drug market with consumer packaged goods capabilities. Some participants are bullish on the industry’s long-term outlook and expect more welcoming laws in the US and across the world to provide upward momentum.
Securities Disclosure: I, Meagen Seatter, hold no direct investment interest in any company mentioned in this article.