The 5 Best Marijuana Stocks Under $10 | CoinCodex (2024)

The cannabis market has significant potential for future growth, with marijuana legalization efforts making significant strides across the globe. An important factor that has led to renewed interest in marijuana stocks and the cannabis industry in general is the recent legalization of cannabis in Germany.

When looking at the performance of cannabis stocks, it quickly becomes clear that investors were too eager to enter this potentially lucrative market, as evidenced by the massive price crashes experienced by cannabis company stocks in 2019 and 2021.

However, these crashes have potentially also created some compelling opportunities for those who want to invest in the cannabis sector. In this article, we are featuring the best marijuana stocks under $10.

The best marijuana stocks under $10 in 2024

Please keep in mind that most of the companies we’re highlighting in this article all have small market capitalizations, and are also operating in the cannabis industry, which is still in a nascent stage and facing several uncertainties.

Investing in these stocks comes with a high degree of risk – as always, make sure to carefully review your financial situation before making any investment decisions and never invest more than you are willing to lose.

Now, let’s get into our list of the best marijuana stocks under $10:

• Canopy Growth Corp
• Tilray Brands
• Aurora Cannabis
• Curaleaf
• Clever Leaves Holdings

1. Canopy Growth Corp

Canopy Growth is a Canada-based cannabis industry company that has seen an impressive surge recently. Starting in mid-March 2024, the stock displayed an impressive rally, surging from an all-time low of $2.77to a local peak of $9.55(an increase of almost 245%) in the span of two weeks.

Canopy Growth was founded in 2013. The company was originally named Tweed (which is the name of one of the company’s current brands), but was renamed to Canopy Growth Corporation in 2016 and became the first cannabis company to list on the Toronto Stock Exchange (TSX) in the same year.

The company has several brands focused on the Canadian, United States and international markets. Some examples of Canopy Growth’s brands include Doja, Deep Space, Ace Valley, Martha CBD, Spectrum Therapeutics and Storz & Bickel.

However, it’s important to keep in mind that Canopy Growth’s history on the stock market has been tumultuous, to say the least. The stock, which ascended to almost $505 in late 2018, saw a precipitous crash in 2019. After a recovery back above $400in early 2021, the stock saw another crash, which brought its price below $10.

As of April 3, 2024

2. Tilray Brands

Tilray Brands is a United States-based cannabis company that produces pharmaceuticals and consumer packaged goods (CPG). The company trades under the TLRY ticker symbol on the NASDAQ stock exchange, and has a market capitalization of $1.84 billion at the time of writing this article.

Tilray was founded in 2014 and was one of the first licensed cannabis producers in Canada. The company merged with Aphria in December of 2020, with goals of expanding its operations globally.

Through its various brands, Tilray offers a range of products including cannabis, edibles, cannabis-infused beverages, CBD oils and more. Tilray’s portfolio of cannabis brands includes Good Supply, Redecan, Broken Coast, Solei, RIFF, Canaca, Chowie Wowie, XMG, Mollo, HEXO, Original Stash, Bake Sale, The Batch

In addition to its cannabis business, Tilray also owns several craft breweries including SweetWater Brewery, Green Flash Brewing and Alpine Beer Company.

As of April 3, 2024

3. Aurora Cannabis

Aurora Cannabis is a Canadian cannabis producer that trades on the Toronto Stock Exchange under the ticker ACB. The company was founded in 2006, and received a license to produce cannabis in 2014. Aurora Cannabis was the first company to obtain such a license in the Alberta province of Canada. Today, Aurora Cannabis has locations in Canada, Europe and South America.

Aurora Cannabis offers cannabis-based products for medical and consumer use. The company’s primary focus is the Canadian market, where it operates across several brands such as San Rafael ‘71, Whistler, Greybeard Cannabis, Drift and others. The company’s international brands include Pedanios and Bidiol.

While Aurora’s recent rally provides some encouragement and the company currently finds itself in a stronger financial state, it remains a high-risk investment. Aurora Cannabis has yet to achieve profitability, and with its revenue increasing by only 5% in the latest quarter, it doesn't present a compelling growth narrative either. The stock's recent uptick may be fleeting unless the upcoming quarterly report offers a convincing optimistic perspective on how new German legislation will positively impact the business.

As of April 3, 2024

4. Curaleaf

Curaleaf is a United States-based cannabis company that is traded on the Toronto Stock Exchange after securing a listing in December of 2023. Although its public listing was fairly recent, Curaleaf’s history dates back to 2010, when it was founded as PalliaTech.

At the time of writing, Curaleaf has a market capitalization of $3.89 billion, which makes it the most valuable cannabis company in the world.

Curaleaf has a presence across 17 states in the United States, operating just under 150 dispensaries. The company produces cannabis at 21 cultivation site with a combined 1.4 million square feet of cultivation capacity.

The company has several brands specializing in various market segments. This includes Select, Grassroots Cannabis, Find, JAMS, Zero Proof, B NOBLE and Plant Precision.

As of April 3, 2024

5. Clever Leaves Holdings

Clever Leaves is a Colombia-based cannabis producer that specializes in medical cannabis and hemp extracts. Clever Leaves is listed on the NASDAQ stock exchange, where it trades under the CLVR ticker symbol.

The company manufactures EU GMP-compliant cannabinoid active pharmaceutical ingredients (API) and finished products in both flower and extract forms for a global business-to-business customer base.

Clever Leaves stock has seen a devastating crash, dropping from a peak of $538 in February of 2021 to a low of $1.88 in November of 2023. However, CLVR has been seeing a modest recovery in 2024 so far, recovering back above the $5 mark.

Investors should note that Clever Leaves has a miniscule market capitalization of just $9 million, and is certainly the most speculative and “long shot” stock highlighted in this article.

As of April 3, 2024

Alternative: Invest in marijuana stocks through an ETF

Instead of trying to pick individual marijuana stocks, an alternative way to gain exposure to the potential growth of the cannabis market is to invest in an ETF that’s designed to track a basket of marijuana stocks. This provides much better diversification than investing in a single stock or a handful of marijuana stocks.

Currently, the biggest cannabis ETF on the market is AdvisorShares Pure US Cannabis ETH (MSOS).

MSOS is an actively-managed ETF that exclusively invests in US cannabis-related companies. At the time of writing, the largest holding of this ETF is Green Thumb Industries, which accounts for 25.74% of the ETF’s portfolio. The second largest holding of the MSOS ETF is Curaleaf, with a weight of 19.31%.

However, investors should keep in mind that as an actively-managed ETF, MSOS has a fairly high expense ratio of 0.83%.

The bottom line

Marijuana stocks could potentially prove to be a good investment in the future, although it’s important to understand that the cannabis sector is still facing legal challenges (for example, cannabis is only legal in 24 out of 50 US states for recreational use), and investors have significantly overestimated the demand for cannabis products as cannabis companies started securing listings on stock exchanges.

If you would also like to explore other sectors of the stock market, make sure to take a look at our list of the best stocks to buy.