Marijuana Stocks to Watch Before They Explode (2024 Update)

Here are the top 10 marijuana stocks to watch in 2023:

1. Tilray Inc. (NASDAQ: TLRY)
2. Canopy Growth Corp. (NASDAQ: CGC)
3. Curaleaf Holdings Inc. (OTCQX: CURLF)
4. Jazz Pharmaceuticals PLC (NASDAQ: JAZZ)
5. Sundial Growers Inc. (NASDAQ: SNDL)
6. GrowGeneration Corp (NASDAQ: GRWG)
7. Fiore Cannabis Ltd. (OTCQX: FIORF)
8. Altria Group (NYSE: MO)
9. Cronos Group Inc. (NASDAQ: CRON)
10. HEXO Corp. (NASDAQ: HEXO)

The marijuana stocks to watch in 2023 are still setting up for a run. That’s because their biggest catalyst is still in play.

Cannabis has yet to be fully legalized. And every time the market gets a sniff of legalization, these stocks run…

But even the best news on this front has proven to be mostly hype. That’s why these are cannabis stocks to watch — not necessarily trade.

Many marijuana stocks hit their best prices in 2021 during the Reddit bubble. Smart traders were prepared. How?

It all starts with the pot stocks to watch in slow markets. Read on for my best marijuana stocks watchlist picks!

What Are Marijuana Stocks?

I have a long history with marijuana stocks.

In 2014, pot stocks were HOT. So it should come as no surprise that there were plenty of scammers in the space.

Check out this Men’s Journal article to see how I deal with scammers. But the best way is a rule I live by…

I never trust any of these stocks.

I’m especially skeptical of marijuana stocks. Cannabis isn’t federally legal in the U.S. yet. That makes American marijuana stocks sketchier than most sectors…

They can’t list on markets like Nasdaq or the NYSE. Major banks and payment providers avoid these companies.

It isn’t all bad news for the sector though. Optimism has been running high since Canada legalized pot in 2018…

 More states are doing so all the time. In April 2022, the House of Representatives passed a bill to decriminalize the plant.

All this adds up to the same uncertainty that’s driven this sector before. That’s why I tell you to be cautious…

And keep waiting for the right opportunity.

Should You Trade Marijuana Stocks?

In 2018, marijuana stocks went nuts on news of Canadian legalization. What happened almost immediately after legalization day came and went? All the weed stocks crashed.

Some even tanked to new all-time lows.

I’ll keep watching marijuana stocks because they’re volatile. Many are former runners, which means they can move again on the right news and hype.

Any new development could be a potential catalyst for a spike.

Learn how to trade these stocks. Don’t invest in them long term. Be prepared to strike when a stock fits your pattern and strategy. Always stick to your trading plan and rules and NEVER believe the hype.

Is It Smart to Trade Marijuana Penny Stocks?

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You can trade any stock as long as you follow some basic rules.

In the case of penny stocks, following the rules is even more important.

I treat every penny stock I buy as a scam. I’ve had 20+ years of trading these stocks…

So believe me when I tell you never to trust these stocks.

Every penny stock company says it will revolutionize its industry. And then the CEO sells their shares into the hype. And the traders who invest in these stocks get burned. 

These greedy penny stock CEOs know to sell these stocks after a spike…

So remember that 99% of penny stocks fail. If you’re still holding these stocks, you’ll fail too.

Top 10 Marijuana Stocks to Watch in 2023

Marijuana stocks in 2023 haven’t yet had the kind of runs they saw in the last couple of years…

Traders might be disappointed by legalization delays. And the market is DEFINITELY slower.

That doesn’t mean they can’t run again. In fact, I think it’s only a matter of time before they do…

That doesn’t mean I’ll trade any of these stocks. I’m just keeping them on my radar. I want you to learn to do that too — so you can be prepared for the next time opportunity knocks. 

Check out my watchlist, then come up with your own!

Marijuana Stock to Watch #1: Tilray Inc. (NASDAQ: TLRY)

Tilray is the first cannabis stock to trade on a major U.S. stock exchange. In December 2020 it merged with Canadian producer Aphria. That made Tilray the largest cannabis company in the world.

Tilray was a sector leader during the 2021 run. Even though it hasn’t made the same kind of moves in 2022, demand seems to be building.

Look at its late-March volume. It approached 100 million shares traded five days in a row … On March 25 it traded almost 300 million shares!

The heavy volume coincided with a run of more than 60%.

It’s since given back most of its gains. But you shouldn’t worry about that. All that matters for smart traders is its volatility.

Look at how many spikes are in this chart. Next time the sector heats up, Tilray will be ready to run.

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Marijuana Stock to Watch #2: Canopy Growth Corp. (NASDAQ: CGC)

The weed sector comes and goes. It’s never been the strongest batch of runners, but we have to respect CGC’s price action. The stock already spiked 231% between March and April.

This price action isn’t random.

There’s been a lot of talk about marijuana legalization recently. Both in the U.S. and worldwide:

• POTUS Biden and VPOTUS Harris both recently expressed an interest in reforming the U.S. approach toward marijuana.
• Germany decriminalized marijuana.

But CGC is also running thanks to a catalyst that was announced on March 14.

• There was news of a potential acquisition. The vote deadline for the acquisition was April 10. On April 15 we learned of a successful shareholder vote to endorse the acquisition.

I snagged a profit on March 22 thanks to the potential acquisition news. The price started running before we even learned of a successful vote.

Take a look at my trade notes below, with a starting stake of $21,420:

And now that the acquisition is successful, there’s a chance the price pushes even higher.

Below, a multi-month chart of the run shows support at $6. Every candle represents one trading day:

This stock is in play as long as it stays above $6!

Marijuana Stock to Watch #3: Curaleaf Holdings Inc. (OTCQX: CURLF)

Curaleaf is now the world’s largest cannabis company by revenue and market cap. Through its acquisitions, it’s also become the largest cannabis company in the U.S. and Europe.

The fact that it doesn’t trade on a major exchange hurts its overall volume. The OTC markets are the Wild West of trading, even if this company is legit. Many traders avoid OTC stocks. Robinhood and Webull traders can’t trade them.

If the U.S. federally legalizes cannabis, this won’t matter. American cannabis companies like Curaleaf have the most to gain.

Marijuana Stocks to Watch #4: Jazz Pharmaceuticals PLC (NASDAQ: JAZZ)

Irish biopharma firm Jazz acquired GW Pharmaceuticals in 2021. Overnight, the company became a leader in the cannabis pharma space.

GW Pharmaceuticals is known for making the first FDA-approved, cannabis-based drug Epidiolex. It’s used to treat two rare diseases in children, so it isn’t a huge money-maker. But that could be a sign of things to come.

Jazz has another CBD-based drug in the development pipeline. This is geared toward children with autism, potentially a much larger market.

Marijuana Stocks to Watch #5: Sundial Growers Inc. (NASDAQ: SNDL)

You might remember Sundial from the Reddit frenzy of 2021 … This Canadian marijuana producer averaged around a BILLION shares traded for nearly a month!

It spiked into the $3s back then. Most of the rest of the time, it hovers under $1.

This isn’t a bad thing for a former runner like Sundial. Since it’s on the Nasdaq, penny stock-hungry Robinhood users can trade it. As a true penny stock, it’s right in their sweet spot.

Marijuana Stock to Watch #6: GrowGeneration Corp (NASDAQ: GRWG)

Not all marijuana stocks have to actually produce marijuana. GrowGeneration is a support industry. It’s the largest American chain of specialty hydroponic and organic garden centers.

Legalization won’t bring major changes to this company. This could make it well positioned for the next big news.

Marijuana Stock to Watch #7: Fiore Cannabis Ltd. (OTCQX: FIORF)

This Canadian producer has been in a death spiral since I last featured it on a penny stock watchlist.

Fiore recently entered the U.S. market through an acquisition. It also shook up its board of directors.

I don’t believe in any penny stock news, but I’m watching this stock for a dead cat bounce.

Marijuana Stock to Watch #8: Altria Group (NYSE: MO)

Altria is one of the largest tobacco companies on the planet. In 2018, it acquired 45% of Canadian cannabis company Cronos Group Inc. (NASDAQ: CRON) for $1.8 billion.

That stake has cost the company. But cannabis expansion still makes sense for Altria’s game plan.

Altria has warrants to buy a controlling stake in Cronos — for a nearly 350% markup from where it now stands. No one knows if this will happen.

What we do know is that the company is trending up, unlike other stocks on this watchlist.

Marijuana Stock to Watch #9: Cronos Group Inc. (NASDAQ: CRON)

Here’s the other piece of the Altria acquisition puzzle.

As a business, Cronos has been disappointing.

But watch this stock if Altria makes its move.

Marijuana Stocks to Watch #10: HEXO Corp. (NASDAQ: HEXO)

HEXO has cratered since the last time it made one of my marijuana stock watchlists…

It’s still one of the leading cannabis producers in Canada. And its deal with Tilray to buy $193 million of its debt could be a lifeline.

This comes on the heels of March news of a strategic partnership with Tilray.

Tilray’s involvement hasn’t moved the stock much … But I wouldn’t be surprised if there’s more news to come.

See the Stocks I’m Watching

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Also, check out these blog posts:

• Top Penny Stocks List Weekly Update
• Top Biotech Penny Stocks to Watch

An Overview of the Marijuana Industry

You want to know more? I’ll give you a start.

Just remember, your education should never end! It’s especially important for a tricky business like the marijuana industry…

It’s no longer just sold by some guy who hangs out behind gas stations. According to BofA Securities, U.S. sales hit $25 billion in 2021.

That takes all kinds of consumers. Let’s talk about them.

Marijuana Can Be Recreational or Medical

18 states and the District of Columbia have legalized recreational marijuana.

38 states and DC allow some form of medical marijuana.

11 other states allow non-hemp CBD strains to be consumed.

The 3 Broad Categories of the Marijuana Industry

When cannabis becomes legal, the assembly line gets established.

Cannabis businesses can concentrate on growing, extraction, and selling. Big cannabis producers like Tilray and Canopy often take care of the first two steps…

Then they sell their products to major dispensary chains like MedMen Enterprises Inc. (OTCQX: MMNFF).

Attention to Geography

The fact that marijuana isn’t legal everywhere complicates the business. A dispensary like MedMen can’t simply expand where it wants.

Dispensary licenses are very hard to get in some states. Some states don’t even have a framework for legal sales yet.

At this point, production is a far more scalable business.

How to Pick the Best Marijuana Stocks

Trick question! I wouldn’t trust many of these stocks overnight.

The marijuana industry is plagued by rampant speculation. If you want to know what that does to a stock, check out the five-year view on one of the charts above.

I wouldn’t invest in any of these stocks. Instead, I watch the market, react to what’s happening, and have a plan to exit with small gains or a smaller loss.

Choose a Company with a Proven Track Record

Study a stock’s chart before you trade it. Stock pumps tend to sink right after they spike.

Over-the-Counter Stocks Come with a Greater Risk

I like trading OTC stocks. But you have to know that 99% of them are outright scams. Make a plan. Get in and out quickly.

Can You Afford the Risk of Marijuana Stocks?

Never trade more than you can afford to lose.

Study the Market of Marijuana Stocks

Studying is where any good trade comes from. That’s why I focus on former runners…

They’re on everyone else’s minds, too.

See the Stocks I’m Watching

I don’t want you to trade the stocks I’m watching…

Heck, I may not even trade most of these stocks. 

I just want to be prepared … And the biggest part of being prepared is having multiple watchlists.

SUBSCRIBE to my no-cost weekly stock watchlist here. It’s got the stocks and sectors I’m watching week to week. 

Want to see the stocks I’m watching every day? Join Profit.ly and you’ll get my list of stocks to watch every morning. 

Conclusion: Should You Trade Marijuana Stocks?

When it comes to trading, volatility is your friend. Marijuana stocks have plenty of volatility and hype right now… which means a ton of opportunities. 

But these opportunities come with risks if you aren’t prepared.

If you want to make the most of these opportunities, invest in your education account first.

That’s why I created my Trading Challenge. I want anyone who’s dedicated to take advantage of what I’ve learned — both good and bad.

Too many new traders get starry-eyed when they hear what trading can bring. My mission in life is to make sure that you don’t get taken in by these get-rich-quick stories.

Trade marijuana stocks if you’re prepared, and if you see a setup you like…

If you’re just waiting for them to go back to their 2018 levels, I’d suggest you study more first.

What do you think about these marijuana stocks to watch? Are any of these tickers on your watchlist? Let me know in the comments!

Frequently Asked Questions About Marijuana Stocks

Marijuana stocks are plagued by misconceptions. Let me knock a few out of your head.

What Are the Top Companies in the Cannabis Industry?

In the rapidly expanding cannabis industry, key players such as Green Thumb Industries, Tilray Brands, and Aurora Cannabis are noteworthy. These companies are benefiting significantly from the ongoing legalization efforts and the burgeoning demand for both medical and recreational cannabis products.

How Does Legalization Impact Cannabis Company Stocks?

The legalization of cannabis, both for medical and recreational use, has been a major catalyst for the cannabis sector. Companies like Trulieve Cannabis and Innovative Industrial Properties have seen growth in revenue and stock price as legal markets expand and new opportunities for market entry and development arise.

What Financial Metrics Should Investors in Cannabis Stocks Consider?

When investing in cannabis stocks, key financial metrics to consider include cash flow, funds from operations, and the expense ratio. These indicators help assess the financial health of companies like Aurora Cannabis and provide insights into their operational efficiency and profitability potential.

What Growth Prospects Exist for New Cannabis Markets?

As cannabis legalization progresses, companies positioned in the cannabis realm, such as Flora Growth and Verano Holdings, are poised to capitalize on significant market opportunities. These firms focus on expanding their cultivation sites and distribution networks to support sustained sales growth and market penetration.

How Do Cannabis Companies Manage Regulatory Challenges?

Cannabis companies navigate various regulatory challenges, including the criticism of marijuana restrictions and the ongoing reevaluation of federal marijuana laws. Firms like Green Thumb Industries and Aurora Cannabis Inc. must also manage the risks associated with the federal classification of cannabis, which impacts banking and financial services availability.

What Are the Risks and Rewards for Cannabis Investors?

Investors in the cannabis market face a unique risk profile, including political risk and the potential for abuse and psychological dependence associated with cannabis products. However, the rewards can be substantial due to the high growth potential and expanding legalization of cannabis, which opens up new retail locations and consumer bases.