Investing in CBD Stocks

Sometimes, the best time to invest in a relatively new market is after the initial euphoria has evaporated. That could very well be the case with investing in CBD, an abbreviation for a chemical found in the cannabis plant called cannabidiol. CBD stocks are shares of publicly traded companies that are involved in the processing and distribution of CBD or provide tools and services to other companies in the CBD industry.

The U.S. legalized hemp-derived CBD at the federal level with the 2018 farm bill. The mere anticipation of the passage of this legislation stoked investors' interest in the stocks of companies involved in the CBD industry.

Although federal legalization served as a key milestone, the U.S. Food and Drug Administration (FDA) chose to exclude CBD from food supplements. As a result, the CBD opportunity in the U.S. hasn't delivered on investors' lofty ambitions.

The CBD industry faces another big challenge in 2026. A continuing resolution passed by the U.S. Congress in November 2025 made significant changes to federal hemp product regulations.

Although the CBD market isn't as attractive as it once was due to the uncertainties created by these changes, investors may still want to consider four CBD stocks:

Cresco Labs (CRLBF -5.88%) is an Illinois-based cannabis operator that markets recreational and medical cannabis products in eight states. The company is more than just a cannabis producer and retailer. Cresco also markets branded cannabis products containing CBD, including its Wonder gummies. It commands the leading market share in multiple markets of $1 billion or more.

Cresco has grown significantly through the years, both organically and through acquisitions, and it consistently generates solid free cash flow. The company also stands to benefit from tax changes related to the federal rescheduling of marijuana.

Perhaps the biggest knock against Cresco is that the company can't list its shares on a major U.S. stock exchange as long as marijuana remains illegal at the federal level. However, Cresco has proven that it can still attract investors through the U.S. over-the-counter (OTC) markets.

2. Green Thumb Industries

You might be surprised to find a pharmaceutical stock listed among the top CBD stocks to consider. But Jazz Pharmaceuticals (JAZZ -1.02%) has a direct and important connection with CBD. In 2018, the company's Epidiolex became the first CBD product made from the cannabis plant to win FDA approval.

Jazz actually didn't own Epidiolex at that time. It acquired GW Pharmaceuticals, which developed the CBD drug to treat epileptic seizures, for $6.7 billion in 2021. Epidiolex is not too far from generating annual sales of $1 billion or more, as some analysts projected after it was first approved in the U.S. Sales continue to pick up, as the drug is now approved in more than 35 countries outside the U.S.

Jazz also has other growth drivers in its lineup. Sleep disorder drug Xywav is gaining momentum. The company also launched its biliary tract cancer drug Ziihera in December 2024, and its newest product, Modeyso, which is used to treat diffuse midline glioma, was granted FDA approval in August 2025.

4. Trulieve Cannabis

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Trulieve experienced a setback when Florida voters rejected a constitutional amendment in November 2024 that would have legalized recreational marijuana. The amendment required a 60% approval to pass, but it only received around 56%.

However, supporters plan to continue pushing for the legalization of recreational marijuana. Trulieve could still have a major growth opportunity in its home state in the future.