Best Cannabis Stocks of 2026

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The Best Cannabis Stocks of 2026

Methodology

There aren’t dozens of publicly traded companies that are directly exposed to the legal marijuana biz, so the universe of potential investments isn’t particularly large. While the companies are all small, we have used a $300 million market cap floor for this list. Several of the stocks are listed on either Canadian or U.S. markets. Here are some of the factors we considered when selecting the best cannabis stocks:

Daily trading volume of at least 500,000 shares. Some marijuana stocks on this list trade on the Pink Sheets as over-the-counter (OTC) shares, rather than on a major exchange like the Nasdaq. But all of them trade at strong volume to ensure investors can get a fair price in a liquid market.

Market value of $300 million or greater. Equally important is that the companies are not tiny fly-by-night operations but actual going concerns with significant market values. Each one on this list is valued at $300 million or greater.

Positive earnings-per-share (EPS) growth. For our analysis, we looked at stocks that had delivered positive EPS growth over the past five years, which is an indicator of strong financial and profitability performance. We also screened for stocks that had positive projected EPS growth for 2026.

Cannabis companies represent high-risk growth stocks. Most do not make a profit, and hence we have limited our search to companies that have recently shown growth.

To learn more about our rating and review methodology and editorial process, check out our guide on how Forbes Advisor rates investing products.

Please note that the stocks above were selected by an experienced financial analyst, but they may not be right for your portfolio. Before you decide to purchase any of these stocks, do plenty of research to ensure they are aligned with your financial goals and risk tolerance.

Best Performing Cannabis Stocks This Year

Listed below are the top-performing cannabis stocks based on year-to-date returns. These stocks are traded on the Canadian or U.S. market and are included as holdings in popular cannabis fund AdvisorShares Pure US Cannabis ETF (MSOS).

Risks of Buying Cannabis Stocks

Owning cannabis stocks is associated with some unusual risks that investors need to understand clearly. These include legal and political risks, as well as other unconventional financial constraints. Here are the risks of buying cannabis stocks:

• Legal risks. Possession and sale of marijuana is against federal law in the U.S. At the state level, however, most states now permit medical marijuana, and roughly half allow recreational use. Only a small number of states maintain near-total prohibition.
• Financial constraints. Given federal prohibition, there are severe restrictions on banks that deal with cannabis-related businesses. This makes it difficult for some U.S. marijuana businesses to access key financial services.
• Supply and demand risks. Given the factors above, plus its status as a rapidly growing industry, cannabis is prone to irregularities in supply and demand. Canadian growers initially undertook major expansion initiatives to increase production capacity to meet recreational marijuana demand, then curtailed production because supply rapidly outstripped demand, causing prices to fall and corporate revenue to suffer.
• Profitability risks. Most of the cannabis companies listed above have not achieved profitability and carry large debt burdens, meaning they could face the prospect of running out of cash. Growth stocks of this sort often raise capital by issuing new shares, which dilutes the value of the existing shares.
• OTC risks. Many cannabis stocks trade in over-the-counter markets, which means they are not required to file regular financial statements or maintain minimum levels of market capitalization. The financials of OTC stocks can be opaque, and they may have low liquidity, making them difficult to trade.

The State of the U.S. Cannabis Market

Despite operating in a rapidly expanding legal market, U.S. cannabis companies are not listed on major U.S. exchanges because marijuana remains federally illegal. Instead, leading operators such as Curaleaf, Green Thumb Industries and Trulieve trade on the Canadian Securities Exchange and over-the-counter (OTC) markets in the U.S.

Price compression played a major role in the sector’s decline. Following a “Covid-19 era” demand surge, wholesale cannabis prices fell across mature markets like California and Colorado as new cultivation capacity came online. But pricing has remained stronger in limited-license states such as Florida, Pennsylvania, New Jersey and Maryland. While state legalization has continued, with nearly half of U.S. states (24 plus the District of Columbia) now permitting recreational cannabis, federal reform has lagged. The Marijuana Opportunity Reinvestment and Expungement (MORE) Act, which proposed removing cannabis from the Controlled Substances Act, has repeatedly stalled in Congress.

More recently, investor focus has shifted toward two developments: The SAFE (or SAFER) Banking Act, which would allow cannabis companies access to traditional banking services, and the federal government’s proposal to reschedule cannabis from Schedule I to Schedule III. Rescheduling would allow companies to deduct normal business expenses under IRS tax rules, potentially transforming industry profitability. Bipartisan support exists for the legislation, but it still awaits a floor vote and passage.

In contrast, Canada, which legalized recreational cannabis nationwide in 2018, has struggled with oversupply, price compression and weak margins among large, licensed producers. As a result, many analysts now view the U.S. market, rather than Canada, as the primary long-term opportunity for cannabis investors.