The 3 Best Cannabis Stocks to Buy Now: Q2 Edition (2024)

Cannabis stocks to buy now could see higher highs, as we near the U.S. elections.

For one, a growing number of Americans want to see legalization. In fact,according to Pew Research, about 88%of the country wants to see that happen. Two, with its popularity, any candidate that favorably mentions it, could see higher ratings.

In addition, more U.S. states, such as Florida may be on the cusp of adult-use legalization.As noted by Benzinga.com, “At the beginning of April, the Florida Supreme Courtproposed Amendment 3, which would legalize adult non-medical personal use of marijuana products and accessories. If approved, the proposal would take effect in May 2025.”

Also, while the Drug Enforcement Agency (DEA) has not given a timeline for potential cannabis rescheduling, there is speculation it could happen prior to the November election. With the fight for legalization, any positive mentions could drive cannabis stocks to higher highs.

Here are three of the top ones you may want to buy and hold today.

Canopy Growth (CGC)

Once left for dead,Canopy Growth(NASDAQ:CGC) recently ran from a low of $2.75 to a high of $11.57. Now back to $6.70, it’s a buy on weakness. Helping, the company’s shareholders justapproved the creation of a new class of Exchangeable Shares, which will allow Canopy to acquire U.S. assets and give it access to a potential $50 billion market.

“With this successful shareholder vote complete, our CanopyUSAstrategy is advancing and is poised to make Canopy the first and only U.S. listed cannabis company offering shareholders unique exposure to the rapid growth of the U.S. cannabis market,”saidDavid Klein, Chief Executive Officer of Canopy Growth. “CanopyUSAcan now move quickly to acquire its U.S. assets in Wana, Jetty, and Acreage, and we expect Canopy Growth to begin highlighting CanopyUSA’sfinancial performance to our shareholders later this year.”

Even better for Canopy Growth, the head of theU.S. Food and Drug Administration just said there’s “no reason”for the DEA to delay its decision to reschedule.

Trulieve Cannabis (TCNNF)

Another hot cannabis stock to buy isTrulieve Cannabis(OTCKMKTS:TCNNF).

After exploding from about $4 to a high of $13.75, it now trades at $10.70, where it’s again a buy. From its current price, I’d like to see it initially retest $13.75 and head to $20 long term.

If Florida approves adult-use legalization, TCNNF would benefit significantly as the state’s leading cannabis retailer. “If passed, the possession of up to three ounces of cannabis will be legal for adults as early as May 2025, transforming the state’smedical marijuanamarket, estimated to generate $2B in annual sales,”says Seeking Alpha.

Alliance Global Partners also noted TCNNF is best positionedafter the recent decision from the Florida State Supreme Court.

While revenue did decline about 7% year over year to $1.13 billion in 2023, the company generated $202 million in cash flow from operations and $161 million in free cash flow. It also increased its retail footprint to 192 locations across the country.

Green Thumb Industries (GTBIF)

Another hot cannabis stock to consider isGreen Thumb Industries(OTCMKTS:GTBIF).

After bottoming out at around $8, it hit a recent high of $15.51 before backing off to $12.42. From here, I’d like to see GTBIF initially retest its prior high.

Analysts like the stock here, too.Craig-Hallum, for example, recently raised its price target to $16 with a buy rating. The firm noted that GTBIF expanded its full-year gross and EBITDA margins and generated $225 million in cash flow.Roth MKM also raised its price targetto $21 with a buy rating.Analysts at Needhamalso raised their price target to $15 with a buy rating.

In addition, the company authorized a $50 million buyback program, which now brings its total repurchase plan to about $60 million.

“We delivered a strong fourth quarter, including record revenue of $278 million, record Adjusted EBITDA of $91 million, and full year 2023 cash flow from operations of $225 million—all the while investing over $200 million in capex to fuel future growth. We ended the year with a strong balance sheet including $162 million in cash, net of $65 million returned to shareholders via share buybacks and debt repurchases,”said Green Thumb Founder, Chairman and Chief Executive Officer Ben Kovler.

On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.comPublishing Guidelines.

Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.