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 stocks. CBD is short for cannabidiol, which is a chemical found in the cannabis plant. CBD doesn't produce a high but has been found to have therapeutic benefits.
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 market could expand if the FDA reverses its stance. In the meantime, here are four CBD stocks to consider.
| Name and ticker | Market cap | Dividend yield | Industry |
|---|---|---|---|
| Cresco Labs (OTC:CRLBF) | $471 million | 0.00% | Pharmaceuticals |
| Green Thumb Industries (OTC:GTBIF) | $2 billion | 0.00% | Pharmaceuticals |
| Jazz Pharmaceuticals Plc (NASDAQ:JAZZ) | $8 billion | 0.00% | Pharmaceuticals |
| Trulieve Cannabis (OTC:TCNNF) | $2 billion | 0.00% | Pharmaceuticals |
Cresco Labs
Cresco Labs
Cresco Labs 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.
Green Thumb
Green Thumb Industries
Like Cresco Labs, Green Thumb Industries is a U.S. cannabis operator based in Illinois. The company has retail stores in 14 states, including California, Florida, Ohio, Pennsylvania, and New York. Green Thumb markets multiple brands in its Rise dispensaries, and its Rythm brand features a lineup of products containing CBD.
The company is profitable and generates positive cash flow. It continues to grow, especially in the adult-use cannabis markets in New York and Ohio. More growth could be on the way, too. Green Thumb has operations in Minnesota, where a new recreational cannabis market is set to launch in the second half of 2025.
Jazz Pharmaceuticals
Jazz Pharmaceuticals
You might be surprised to find a pharmaceutical stock listed among the top CBD stocks to consider. But Jazz Pharmaceuticals 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.
Trulieve Cannabis
Trulieve Cannabis
Trulieve Cannabis is a Florida-based cannabis operator. It has retail dispensaries in nine states and cultivation and processing facilities in seven states. The company is especially dominant in its home state's medical cannabis market. Roughly 70% of Trulieve's retail locations are in Florida. Trulieve also has leading market positions in Arizona and Pennsylvania.
Like Cresco Labs and Green Thumb Industries, Trulieve generates most of its revenue from cannabis sales. However, it also markets CBD products, including tinctures.
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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.
FAQ
Frequently asked questions about investing in CBD stocks
Who is the largest CBD company?
The largest company with a CBD product based on market cap is Jazz Pharmaceuticals (NASDAQ:JAZZ).
Is CBD a good business to invest in?
The CBD industry could be a good investment choice if the FDA changes its policies to allow CBD in food supplements. For now, though, the industry's growth prospects could be somewhat limited.
What state buys the most CBD?
California is the biggest CBD market in the U.S.
