In October of 2018, Canada became the first North American country to completely legalize marijuana, opening the doors for the cannabis industry to expand into new territory, and for Canadian cannabis stocks to begin trading on the TSX.
While in the US, weed isn’t Federally legal, the majority of states allow the purchase of marijuana at licensed shops. By 2030, the North American marijuana market value is predicted to reach 42.3 Billion.
When marijuana companies first made their debut on the market exchange, they were on fire as market speculation made us have high hopes for pot stocks.
Things have since cooled down a bit, but there is definitely still room for growth. As countries across the globe continue to legalize recreational use of marijuana, demand for the sticky stuff will continue to grow. Not to mention, by supporting local growers and distributors, you are supporting the local economy. The cannabis industry has contributed $43.5 Billion to Canada’s GDP since it was legalized.
So, is it a good idea to invest in Canadian cannabis stocks? It could definitely be a good bet. In our review of the best cannabis stocks to buy in Canada, we’ll be sharing all you need to know about each company’s background, performance and what their futures might hold.
Canadian Marijuana Stocks Performance
When weed stocks first came onto the market, there was a frenzy of buying that went on from 2018 and into 2019. Folks were buying with hopes that new reforms would be soon happening in our neighbor down south that would make the demand for all cannabis related products dramatically increase.
The reality has been, due to a number of unforeseen circumstances, that the demand just hasn’t been what so many thought it would be. One of the major factors was that US-based companies were able to up the ante, increase production, and deliver domestically, negating the need for outsourced products.
That may very well change now that there is buzz going around that some stalled legislature in favor of more legalization may be coming into fruition, paving the way for Canadian companies, with the help of their US based partners, to export cannabis derivative products.
So, while performance is down now, cannabis stocks in Canada’s future looks promising.
Top 10 Canadian Cannabis Stocks
Here are our top 10 picks for the best cannabis to invest in 2024:
Lifeist_ (formerly Namaste Technologies)
The Valens Company
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1) Canopy Growth (WEED)
Canopy Growth’s stock has gone through a whirlwind of a journey since first opening on the market. In April 2019, its selling price was above $60, which is a far cry from its current selling price of just under $5. That isn’t to say all hope is lost for Canopy Growth, as it’s got a lot of grit as a company, and has survived many ups and downs since coming onto the market all the way back in 2010.
Canopy Growth has spent the last decade making important strategic business decisions with the long view in mind. Key partnerships such as the one they have with Constellation Brands, a US based Fortune 500 company, as well as a diversified product offerings, make Canopy Growth a company with a lot to offer, and a lot of potential to offer even more in the future.
In Canada alone, Canopy Growth has 14 brands under its belt, offering products ranging from flowers to infused beverages. Canopy Growth also already has an international presence, with established brands in the US and beyond.
One of its most promising products is BioSteel, which surprisingly has nothing to do with Cannabis. BioSteel is a sports drink that is quickly gaining popularity and has the potential to be one of the top sports drinks in the US.
This could very well be the best cannabis stock under $10. Given the history of the company and its future potential, buying this stock could be a good bet.
2) HEXO (HEXO)
Established in Quebec in 2013, HEXO originally catered to the medicinal cannabis market. Once weed was legalized, HEXO expanded their operations to meet the growing demand.
Hexo’s product line includes dried flowers, oils and capsules, vape products and pre-rolls.
Like Canopy Growth, HEXO saw massive growth from 2018-2019 with shares going for over $40. Since then, their stock has plummeted to less than $0.30. This could be a good opportunity to buy low because HEXO has made some major acquisitions over the last year or so, showing that they are hungry to maintain their status as one of the best adult use cannabis companies in North America.
Acquisitions have included the purchase of Redecan and 48North, two top selling, privately held Canadian cannabis companies. It also acquired Zenabis Global, which earned EU approval to supply its partners with medicinal marijuana products.
Interestingly, Tilray secured a convertible note deal with HEXO, which could further help HEXO expand operations and increase revenue.
3) AURORA CANNABIS (ACB)
Aurora Cannabis has been around since 2006, and has been able to ride out the highs and lows of the last decade and a half, remaining an investor favorite until this day.
Aurora Cannabis stock rose to more than $100 in its heyday, which is a far cry from today’s $1.53. That doesn’t mean all is lost for this Canadian Cannabis giant. It has big plans for the US market, and in 2020 it acquired Reliva, a top player in the US CBD market. In the US alone, the CBD market is worth more than 12.8 Billion, with a CAGR of 21.7% between 2022 and 2028.
Other important acquisitions Aurora Cannabis has made include Thrive Cannabis, Graybeard and Being Cannabis.
The company has 4 medicinal product brands under its belt, and 6 consumer brands, offering a wide range of products to consumers. Its diversification and strategic moves could be setting Aurora Cannabis up for strong revenue reports in the coming years.
4) Tilray (TLRY)
Founded in 2014, Tilray became one of Canada’s first licensed producers in the country, and later became the first company to be granted trial approval for medicinal cannabis products. Tilray was also at the forefront of exporting medicinal marijuana products to the US, as it was the first company to earn approval, as well as one of the first to earn worldwide export approval for medical use products.
So, it is clear that Tilray is doing something right, which has earned it a good spot in the area of government regulations. This is always a positive when looking for a good long term investment opportunity.
As with its local compatriots, strategic acquisitions and partnerships have played an important part over the last two years. In 2020, Tilray acquired US based SweetWater Brewing, in order to prepare to enter the cannabis infused beverage segment in a big way once weed is (hopefully) legalized down there.
In 2021, Tilray and Aphria made big waves with news of their merger. With their combined revenue, they are now the largest Canadian cannabis company.
Another one of Tilray’s strengths is its global partnerships, with which Tilray is cooperating in the areas of research, production and distribution. Long term, this could definitely pay off as more countries move to allow the medicinal and recreational use of weed and cannabis related products.
5) Village Farms (VFF)
Village Farms is another one of Canada’s best cannabis stocks under $10. It’s also a company with big potential due to its diverse range of products.
Village Farms was founded in 1989 and began as an agricultural company focused on produce, and that remains part of their business today. They produce greenhouse grown tomatoes, peppers and cucumbers and distribute them all across North America.
In 2014, Village Farms acquired Maxim Power and established their energy arm, creating clean energy from methane gas they collect from the Vancouver landfill. Hopefully this successful model can be replicated across Canada and beyond. If you are also interested in that, read our best renewable energy stocks article.
Seeing the opportunity to put their extensive growing knowledge to use in a new market, they started a new venture; Village Farms Hemp. This move has made them a major player in the hemp derived CBD product market.
Another offering under the Village Farms umbrella is its adult cannabis line, Pure Sunfarms. In 2020, Village Farms acquired Pure Sunfarms under which it sells flowers, vapes, pre-rolls, edibles and more. This turned out to be a prudent business move, as in 2021, the company posted a 200% increase in sales from the first to second quarters.
This visionary company has a lot to offer in terms of diversification and just might be an excellent addition to your portfolio.
6) Organigram (OGI)
Organigram was established in 2013 and offers both medicinal and adult recreational cannabis products. It has 7 brands in its portfolio and it looks as if they won’t be stopping there.
In 2020, Organigram became the supplier to Canndoc, one of Israel’s largest medical cannabis producers. This partnership looks to bring fruitful results, as Canndoc also distributes its products to the EU.
In 2021, BAT, a British American tobacco company, made a strategic investment in Organigram, with the aim to help the company expand operations as well as make its foray into the UK’s vape market.
While sales were down at the beginning of 2021, they have rebounded due in part to Organigram expanding its product offerings. Sales have grown 90% year over year, and the company grossed 55.2 million at the end of the third quarter.
If Organigram can maintain this pace as well as find ways to cut costs, it could give the company, and its stock price, a much needed boost.
7) Lifeist_ (NXTTF)
Lifeist_, which evolved from its former name Namaste Technologies in 2021, aims to establish itself as a leading global wellness brand. Within its portfolio, Lifeist_ has an e-commerce site CannMart, offering multiple adult use cannabis brands.
It also has a UK e-commerce site selling vape, dab, rollers and more, delivered straight to their customer’s doors. Similarly, they’ve got another e-commerce site in Aus selling similar products. These are huge markets and it’s definitely a big plus for Lifeist_.
However, as many cannabis companies have learned, the margin on consumer cannabis products just doesn’t cut it. In its bid to diversify into new territory, Lifeist_ launched Mikra, a company dedicated to developing cellular therapeutics for the fast growing nutraceutical market.
Mikra has developed CELLF, a nutraceutical supplement that the company claims can increase our healthspans on a cellular level. Before launching this year, CELLF had a waitlist of over 40,000 subscribers.
While it’s too early to know what impact this will have on Lifeist_’s revenue and overall business performance, with its product and geographic diversification, as well as rock bottom price of under $1, it could be worth having a few of their stocks in your portfolio.
8) InterCure (INCR.U)
InterCure is not a Canadian based company, but it is traded on the Toronto Stock Exchange. It is a good choice if you are looking to invest in a new geographic location.
InterCure is based in Israel, which is one of the world’s leading markets when it comes to medicinal cannabis. InterCure’s subsidiary is Canndoc, which is one of Israel’s largest cannabis producers, and one that holds the lucrative title of being Good Manufacturing Practices certified.
Medical cannabis is known for having high profit margin, and the fact that InterCure only focuses on medicinal use cannabis production and distribution is good news for shareholders. Other good news is that they hit record revenue of $37 million in the second quarter of 2022.
This may be why the stock hasn’t seen as much volatility as other pot stocks. With a high of just over $8 in 2021, it has experienced a decline since, but nothing like some of the other stocks we’ve seen, making it one of the safest investments on this list.
9) The Valens Company (VLNS)
The Valens Company has established itself in the industry as an R&D expert and white label partner, making it unique compared to some of the other companies we have included in our list of some of the biggest weed stocks in Canada.
For their B2B business, they work with other companies to develop, process and manufacture a wide range of oil products. They have taken the extra step to become Health Canada licensed, so their clients can trust they will deliver top products.
In their Center of Excellence in Plant-Based Science, Valens has a research and testing facility in B.C., offering clients third party testing required by Canadian health and safety regulations.
To capitalize on the US CBD market, Valense acquired Green Roads, which is a well established cannabis company with distribution and sales channels in the US and 11 other countries worldwide.
Valens has shown considerable dedication when it comes to establishing deep roots that will support it for years to come.
10) Terrascend Corp. (TER)
TerrAscend has a great foothold on the North American cannabis market, having operations in 5 US states as well as licensed production in Canada.
TerrAscend’s award winning dispensaries and industry leading cultivation practices have gained the company recognition as a premium brand for both medicinal and personal use. Its 10 brands offer flower, edible, vape and oil products.
Recently, TerrAscend acquired three retail outlets in the US, which are valued at $70 million, making their total number of retail outlets a whopping 27. This is a very smart move for the business, as in the state of Pennsylvania alone, medical marijuana sales could reach upwards of $900 in this year alone.
If the Federal ban is lifted, this would mean a potential of millions more, and TerrAscend will be poised to reap the benefits.
Canadian Marijuana ETFs
Considering some key points, such as market volatility and saturation, it is a bit risky to try and choose one or two weed company stocks in Canada. Each company has its own USP, but we don’t really know which one will be the goose that lays the golden egg.
This is a great reason to consider going with a Canadian Cannabis ETF, which means you will own slices of many of Canada’s best marijuana stocks.
Here are the top 5 weed stock ETFs in Canada:
- Horizons Marijuana Life Sciences ETF (HMMJ)
- Horizons US Marijuana (HMUS)
- BetaPro Marijuana Companies 2x Daily Bull ETF (HMJU)
- Marijuana Opportunities (MJJ)
- Horizons Medical Marijuana Life Sciences (HMMJ)
You can also see how these compare to the best ETFs in Canada or our most recommended Canadian all-in-one ETFs. These Marijuana ETFs obviously perform much worse, but can still be a decent way to diversify a portfolio.
Final Words on Canadian Cannabis Stocks
No doubt about it, Canadian pot stock prices are nearly at an all-time low. If you have a higher risk tolerance, it might be the perfect time to buy. Much depends on whether or not the US will lift the Federal ban, and how accepting other countries decide to be when it comes to the use of cannabis.
The good news is that there are a number of Canadian marijuana stocks that are doing pretty innovative and exciting things, whether it’s branching out into the sports drink segment, or finding ways to create clean energy. These have a lot of potential to grow in unexpected ways that can pay off in the long run.
All cards on the table, I don’t own any shares from this Best Canadian weed stocks in Canada list. I’m more partial to mature companies that have more secure profit margins.
Check out our post on the Best Canadian Dividend Stocks for more info. If you want to check out other industries and how they compare to Canadian cannabis stocks, you might like our take on the Best Energy Stocks in Canada and also the Best Canadian Healthcare Stocks.
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