Top Cannabis Stocks for 2024
Top Cannabis Stocks for 2024
The government is reconsidering how it classifies cannabis on the Drug Enforcement Agency’s schedule. The move could remove barriers that have throttled capital flows in the industry.
- Top three cannabis stocks for 2024: TLRY, IIPR, ABBV.
- An impending DEA scheduling decision may spark a pot stock rally.
- We dive into several tops plays for cannabis stocks, including direct and indirect plays.
Cannabis stocks didn’t offer investors too much in 2023 but prices stabilized from the year before when pot stocks collapsed on valuation concerns.
Valuations have now returned to earth, and the U.S. government is reconsidering how it classifies cannabis on the Drug Enforcement Agency’s schedule. The move could remove legal barriers and ease regulatory measures that have throttled capital flows in the industry. Will 2024 be the year that cannabis stocks return some green to investors, and what stocks are likely to perform well? We’ll analyze three pot stocks that have some potential this year.
1.Tilray
A well-known name among cannabis investors, Tilray (TLRY) made some exciting moves in 2023 striking a deal with Anheuser-Busch InBev (BUD) to acquire several beer brands, including Shock Top and Breckenridge Brewery brands. This opens the door to potentially making cannabis-infused alcohol products. For now, however, the company should benefit from revenue streams from those beer sales.
According to estimates from Bloomberg, Tilray’s revenue from its beverage alcohol segment is expected to grow by 92% to $182.5 million in 2024. That is about triple the 28.17% growth rate analysts expect its cannabis segment to achieve. But cannabis sales will still command the largest chunk of its revenue at an expected $282.5 million in 2024. So far, its beer brand acquisitions look smart.
2.Innovative Industrial Properties
Innovative Industrial Properties (IIPR) doesn’t sell cannabis, but it does own, lease and manage properties in the cannabis industry. Like a lot of cannabis stocks, IIPR didn’t perform well last year, but it has come off its recent lows. In December, the stock rose 23.46%, its best monthly performance since 2020.
A DEA rescheduling would benefit the company’s portfolio of real estate holdings in the cannabis sector. Bloomberg estimates put year-over-year revenue growth at 11.29% for 2023 to $307.57 million. Most of that is through rental income. The stock, unlike most cannabis stocks, also pays a dividend, with a hefty 7.65% current yield. This is an interesting stock to put in your portfolio to play the cannabis sector without having direct exposure to cannabis operations.
3.AbbVie
AbbVie (ABBV) is another indirect play on the cannabis sector. This one was recently in my best dividend stocks for 2024 article due to its impressive fundamentals and inspiring drug pipeline. While ABBV doesn’t have a cannabis product in its current pipeline, the company does hold dozens of patents.
A DEA rescheduling could inspire the company to open research into using those patents. ABBV has experience with using a synthetic form of tetrahydrocannabinol (THC) with one of its previous drugs, Marinol. That said, AbbVie might spark some interest in investors who are looking at playing the pharmaceutical side of the cannabis sector.
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater
For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.
Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2024 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.