Top Cannabis Stocks to Watch in June 2023: Prices and Market Insights

SNDL Inc. stands out for its value and growth potential, while GTBIF leads in overall performance within the cannabis sector.

In June 2023, top cannabis stocks such as SNDL Inc., TerrAscend Corp., and Curaleaf Holdings Inc. dominate the market with impressive revenue growth, setting benchmarks in the industry.

The cannabis sector, tracked by the ETFMG Alternative Harvest ETF (MJ), experienced a 53% decline over the past year, contrasting with a 6% increase in the Russell 1000 Index, underscoring the volatility and opportunities within this market.

Below are the leading cannabis stocks categorized by best value, fastest growth, and top performance as of June 8, 2023.

Best Value Cannabis Stocks

These stocks offer the lowest 12-month trailing price-to-sales (P/S) ratios, indicating companies in early growth stages with potential for increased profitability as they mature. The P/S ratio reflects the amount investors pay per dollar of sales generated.

Source: YCharts

• SNDL Inc.: One of Canada's largest private liquor and cannabis retailers, SNDL cultivates and processes cannabis sold under brands like Sundial, Top Leaf, Palmetto, and Grasslands. Its net revenue surged over 1,000% year-over-year in Q1 2023, fueled by acquisitions of Alcanna, Valens, and Zenabis in 2022. The company's net loss reduced by 5% compared to the previous year. On July 1, Alberto Paredero-Quiros will assume the CFO role, succeeding Jim Keough.
• Cresco Labs Inc.: Operating across 10 states, Cresco Labs grows, processes, and distributes cannabis products under brands such as Cresco, Remedi, High Supply, and Wonder Wellness Co.
• Trulieve Cannabis Corp.: A vertically integrated cannabis company with operations in multiple U.S. states, offering products through brands like Cultivar Collection, Muse, and Sweet Talk.
• Canopy Growth Corp.: A Canadian medical cannabis producer with brands including Tweed, DOJA, Deep Space, and Ace Valley.
• Curaleaf Holdings Inc.: Produces cannabis products for retail and wholesale markets, recently reporting a 14% year-over-year revenue increase in Q1 2023 despite a 48% rise in net loss due to margin pressures. Curaleaf also launched a mobile app and loyalty program boasting 1.9 million members.

Fastest-Growing Cannabis Stocks

These companies exhibit the highest year-over-year sales growth in the latest quarter, signaling strong revenue momentum. While rising sales are promising, investors should consider cost management for sustainable profitability.

Source: YCharts

• SNDL Inc.: Refer to description above.
• TerrAscend Corp.: A vertically integrated cannabis firm operating in the U.S. and Canada with brands like The Apothecarium and Ilera Healthcare. Recently sold a Mississauga facility for CA$19.7 million to reduce debt and agreed to acquire Maryland-based Peninsula Alternative Health for about $22 million.
• Curaleaf Holdings Inc.: Refer to description above.
• Verano Holdings Corp.: Multistate distributor of cannabis products under Encore, Avexia, and MUV brands.
• Green Thumb Industries Inc.: Manufactures and distributes a wide range of cannabis products and operates retail stores nationwide. Growth driven by retail expansion and legalization in new markets.

Cannabis Stocks With the Best Performance

These stocks experienced the smallest total return declines over the past 12 months, demonstrating relative resilience in a challenging market.

Source: YCharts

• Green Thumb Industries Inc.: See description above.
• Cronos Group Inc.: Canadian cannabis company with brands including Spinach and Lord Jones. Reported a 41% reduction in net loss in Q1 2023, with a 7% revenue decline offset by increased extract sales.
• Curaleaf Holdings Inc.: See description above.
• Cresco Labs Inc.: See description above.
• TerrAscend Corp.: See description above.

Key Trends Influencing Cannabis Stocks

The cannabis market has been volatile, with significant rallies and setbacks. Investors should watch these trends shaping the sector's future:

• Financing Challenges: Federal illegality in the U.S. limits banking services for cannabis firms. The SAFE Banking Act, passed in the House in 2021 but stalled in the Senate, aims to protect banks serving the industry. Future legislative developments could impact financing availability.
• Mergers & Acquisitions: M&A activity peaked at $10.3 billion in 2021 but declined to $3 billion in 2022. Increased dealmaking in 2023 may signal renewed investor confidence.
• U.S. Legalization Prospects: Multiple bills are under consideration, but bipartisan support remains elusive, creating uncertainty for market participants.

Advantages of Investing in Cannabis Stocks

Despite recent underperformance, cannabis stocks offer substantial growth opportunities. Industry forecasts project U.S. cannabis sales exceeding $33 billion in 2023 and nearly $57 billion by 2028. Globally, the market could approach $200 billion by 2028, up from $28 billion in 2021.

Note: This article is for informational purposes only and does not constitute investment advice. The author does not hold positions in the mentioned stocks as of the publication date.

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