Marijuana stocks don't generate the buzz that they did a few years ago. However, the cannabis industry is still in its early growth phase. As more states and countries legalize medical and recreational marijuana, opportunities continue to expand for growers, retailers, biotech firms, and ancillary businesses. One of the biggest potential catalysts is the U.S. Drug Enforcement Administration's move to reclassify marijuana from Schedule I to Schedule III. If finalized, this could:
- Allow cannabis companies to deduct normal business expenses (ending IRS 280E burdens)
- Improve access to banking services
- Encourage broader institutional investment
Still, cannabis remains federally illegal in the U.S., and regulatory uncertainty creates real risks for investors. Before investing, it's important to understand how the industry works and how to evaluate marijuana stocks.
Five top marijuana stocks for 2026
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Green Thumb Industries (OTC:GTBIF) | $1.5 billion | 0.00% | Pharmaceuticals |
| Trulieve Cannabis (OTC:TCNNF) | $1.2 billion | 0.00% | Pharmaceuticals |
| Innovative Industrial Properties (NYSE:IIPR) | $1.4 billion | 14.90% | Industrial REITs |
| Quest Diagnostics (NYSE:DGX) | $21.0 billion | 1.70% | Healthcare Providers and Services |
| Turning Point Brands (NYSE:TPB) | $1.6 billion | 0.37% | Tobacco |
1. Green Thumb Industries
OTC: GTBIF
Key Data Points
Green Thumb (GTBIF +0.85%) ranks among the largest cannabis companies in the U.S. It operates more than 100 retail cannabis dispensaries and 20 manufacturing facilities across 14 states.
The company has been profitable on an annual basis since 2020. It continues to deliver revenue growth and maintains a strong balance sheet even with headwinds in the economy and the cannabis industry. Green Thumb should have plenty of long-term growth potential as the U.S. cannabis market expands.
For now, Green Thumb's shares can only be bought and sold on over-the-counter (OTC) markets in the U.S. However, if federal cannabis restrictions are lifted, the stock could be listed on major U.S. stock exchanges. This would almost certainly be a huge catalyst for Green Thumb.
2. Trulieve Cannabis
OTC: TCNNF
Key Data Points
Trulieve Cannabis (TCNNF -0.16%) is the largest cannabis retailer in the U.S. It operates more than 230 retail cannabis stores in nine states, with 15 processing facilities in six states. The company dominates the market in its home state of Florida. It also claims market-leading positions in Arizona and Pennsylvania.
Support for legalizing recreational marijuana failed to achieve the required 60% threshold in Florida's 2024 elections. However, with almost 56% of the state's voters favoring legalization, Trulieve could still have a significant growth opportunity if the state legalizes recreational marijuana in the future.
Like Green Thumb, Trulieve's shares can currently only be traded on OTC markets in the U.S. The stock will likely be a big winner if federal marijuana reforms allow U.S. stock exchanges to list the shares of cannabis companies that operate in the U.S.
3. Innovative Industrial Properties
NYSE: IIPR
Key Data Points
U.S. cannabis companies can't easily secure capital from banks or financial institutions since marijuana remains illegal at the federal level. Innovative Industrial Properties, or IIP (IIPR -0.65%), helps solve cash shortages for growing marijuana companies. It buys properties owned by U.S. medical cannabis operators and leases the properties back to them. The sale to IIP provides the cannabis operator with much-needed cash, and the lease agreements create a steady revenue stream for IIP.
Innovative Industrial Properties has grown significantly in recent years and now owns more than 100 properties in 19 states. The company continues to generate solid revenue and earnings, powered by its sale-leaseback business model, even as some of its tenants face financial challenges. Because IIP is organized as a real estate investment trust (REIT), it returns at least 90% of its taxable income to shareholders.
In some ways, IIP wouldn't benefit as much from federal cannabis reform as other companies. Its shares already trade on the New York Stock Exchange (NYSE). If traditional banking services were available to U.S. cannabis operators, IIP could face increased competition. However, federal reforms would likely cause the U.S. cannabis market to expand -- which should work in IIP's favor.
4. Quest Diagnostics
NYSE: DGX
Key Data Points
Quest Diagnostics (DGX +0.73%) might be a surprising pick for a list of marijuana stocks, as it's one of the world's largest providers of laboratory testing services.
How does Quest tie in with the cannabis industry? The widespread legalization of marijuana in states across the U.S. is driving increasing demand for drug testing in the workplace. Quest offers drug testing services and is certified by the U.S. Department of Health and Human Services for federally mandated drug testing of workers in some safety-sensitive fields.
Quest could be an attractive stock for more risk-averse investors looking to profit from the legalization of cannabis. The company has a long track record of success and is consistently profitable.
5. Turning Point Brands
NYSE: TPB
Key Data Points
Turning Point Brands (TPB -0.42%) is a leading supplier of smoking accessories and oral tobacco. Its products include Zig-Zag rolling papers, Clipper lighters, and Stoker's and Beechnut tobacco products.
The company has significant growth opportunities due to the legalization of cannabis in the U.S. Turning Point Brands estimates an addressable market of around $200 million in the alternative market for headshops and cannabis dispensaries.
How to buy marijuana stocks
- Open your brokerage account: Log in to your brokerage account where you handle your investments. If you don't have one yet, take a look at our favorite brokers and trading platforms to find the right one for you.
- Search for the marijuana stock: Enter the ticker into the search bar to bring up the stock's trading page.
- Decide how many shares to buy: Consider your investment goals and how much of your portfolio you want to allocate to this stock.
- Select order type: Choose between a market order to buy at the current price or a limit order to specify the maximum price you're willing to pay.
- Submit your order: Confirm the details and submit your buy order.
- Review your purchase: Check your portfolio to ensure your order was filled as expected and adjust your investment strategy accordingly.
Benefits and risks of investing in marijuana stocks
The benefits of investing in marijuana stocks include:
- Potential for near-term appreciation once rescheduling is finalized.
- Significant long-term growth potential.
- Merger and acquisition opportunities as the cannabis market consolidates.
However, there are also risks of investing in marijuana stocks, including:
- Cannabis remains illegal at the federal level in the U.S.
- Significant volatility.
- Competition from unregulated marijuana.
Should you invest in marijuana stocks?
Just because there's a trendy new sector with lots of press and potential growth doesn't mean you need to invest in it. Conservative investors who prefer lower risk are likely better off avoiding investing in marijuana stocks or choosing a marijuana ETF instead.
However, aggressive investors with high risk tolerances will probably find a lot to like about marijuana stocks. The cannabis industry is still in its early stages. The market opportunities are enormous, especially as more U.S. states legalize cannabis. Investing in these stocks is a high-risk but potentially high-reward proposition.
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FAQ
Investing in Marijuana Stocks FAQ
About the Author
Keith Speights has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Quest Diagnostics. The Motley Fool recommends Green Thumb Industries, Innovative Industrial Properties, and Turning Point Brands. The Motley Fool has a disclosure policy.
