For long-term investors, growth stocks are a superior option in a volatile market. Long-term investors can afford to be far less concerned with short-term fluctuations in stock prices. Growth stocks generally take time to show their full potential, so they tend to be good options for patient investors with a high appetite for risk.

If you are a long-term investor looking for fresh options in this volatile bear market, I have three stocks in mind. Regardless of how their stocks perform at the moment, biopharma company AbbVie (ABBV 1.77%) and cannabis companies Green Thumb Industries (GTBIF -3.86%) and Tilray Brands (TLRY -5.29%) appear to be in prime position for investing.

Let's take a closer look at why these three stocks are absolute buys this month.

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Image source: Getty Images.

1. AbbVie has a strong portfolio of quality drugs

Investors became wary of AbbVie stock after the company's star pharmaceutical, Humira, lost patent exclusivity in the U.S. at the start of 2023. The medication is used to treat adults with moderate to severe rheumatoid arthritis. In 2022, it generated $21 billion in sales, accounting for 36% of the company's total revenue.

A smart company understands that it cannot rely on a single drug for success, and AbbVie offers an array of other successful drugs. Its other promising products are Skyrizi (used to treat moderate to severe plaque psoriasis in adults) and Rinvoq (used to treat moderate to severely active rheumatoid arthritis in adults). Management is confident that these two will eventually outperform Humira. Together, both brought in $7.6 billion in sales for 2022.

In addition, the company is investing heavily in research and development (R&D), which totaled $6.5 billion (12% of revenue) in 2022.

AbbVie is a growth stock, but it is also an income stock. It has the designation as a Dividend King for raising dividends for 51 years in a row (it was spun off from Abbott Laboratories in 2013, and assumed Abbott's multi-decade track record of dividend growth). Its consistency in dividend payments also makes it a reliable passive income stock.

Since the 2013 spinoff, AbbVie has increased its dividends by more than 250%. It is a good long-term investment due to its strong portfolio of effective pharmaceuticals and consistent dividend payments.

2. Green Thumb Industries is preparing to be a top cannabis contender in the U.S.

If federal cannabis legalization does not progress, investors may be tempted to exit the cannabis industry entirely. However, legalization is not required for cannabis companies to become profitable in the long run. Yes, federal legalization will help these companies deal with a few issues, but even the state markets they currently operate in should suffice to keep them profitable.

Multistate operator (MSO) Green Thumb Industries has proven this. Green Thumb's revenue quadrupled from $216 million in 2019 to $1 billion in 2022.

Note that this exceptional growth is solely from a limited legal market. Its aggressive expansion from 39 stores in eight states in 2019 to 77 stores in 15 states now has contributed to this performance. 

While many marijuana businesses struggle with profitability, Green Thumb is one of the few that is consistently profitable. It has reported positive GAAP net income for nine consecutive quarters. In the most recent fourth quarter, the company also reported an adjusted net income of $12 million. Revenue increased 6% year on year to $259 million.

According to industry experts, cannabis could be fully legalized in Pennsylvania, Florida, Maryland, Ohio, and Minnesota this year. In each of these states, Green Thumb operates a significant number of stores under the Rise brand, providing the company with additional opportunities. These are also limited-license markets, with only a few cannabis businesses receiving licenses. Green Thumb can use this strategy to build a loyal customer base.

3. Tilray Brands could take advantage of its global exposure

Tilray's peers in the Canadian marijuana industry have struggled to achieve positive EBITDA in past years. Meanwhile, Tilray reported its 15th consecutive quarter of positive adjusted EBITDA in its recent quarter, which came in at $11.7 million.

Tilray's mega-merger with peer Aphria in 2021 has benefited the company. Tilray also had $25.4 million in free cash flow at the end of the quarter, which should help fund future growth strategies. It also maintains a strong balance sheet, with $433.5 million in cash and marketable securities at the end of the quarter. With its partners SweetWater Brewing, Breckenridge Distillery, and Manitoba Harvest, the company is well-positioned to expand in the U.S. market (if and when federal legalization occurs).

However, the U.S. market appears to be a long shot at this point. Furthermore, once legalized, the market would be more favorable to domestic players. Tilray has more leeway in capitalizing on its presence in Canada and Europe.

Risky but worthwhile investments!

Because of Aphria, Tilray already has a strong presence in the European market. The European cannabis market is expected to grow at a compound annual rate of 61% to $14 billion by 2028.

If Green Thumb so desires, it has the potential to expand beyond the United States. It is in good financial shape to do so, with $178 million in cash at the end of the year. And the global cannabis market is rapidly expanding, with an estimated value of $84 billion by 2027. However, not every cannabis company will be successful. Only stable and profitable businesses will be able to benefit from this burgeoning market.

In the meantime, AbbVie is vulnerable to the ups and downs of the healthcare industry. However, the healthcare industry is defensive, which means that people will continue to fall ill regardless of the state of the economy. As a result, the demand for healthcare products will always be there.

All three are high-growth but risky investments, making them appropriate for investors with a higher risk tolerance. A small investment in these alongside a diversified portfolio of stable stocks would be a wise move for long-term stability.