The Justice Department announced on April 23 that FDA‑approved marijuana products and state‑legal cannabis would move from Schedule 1 to Schedule 3, a shift that has sent marijuana stocks surging.
Best-performing marijuana stocks
According to NerdWallet’s Global Cannabis Stock Index (source: Finviz, data as of September 1 2026), the top‑performing stocks over the past year are:
Jazz Pharmaceuticals (JAZZ) – up 97.43%
Cronos Group (CRON) – up 29.42%
Innovative Industrial Properties (IIPR) – up 0.15%
Why marijuana stocks are unique and risky
The cannabis industry remains illegal under federal law, creating distinct risks for investors:
Relatively new industry – many firms are penny‑stock sized, volatile, and lack extensive research.
Speculative nature – investors should only allocate money they can afford to lose.
Potential scams – the SEC has warned about fraud, unlicensed sellers and market manipulation in cannabis stocks.
Foreign exposure – many U.S.-listed cannabis companies are Canadian, bringing limited financial transparency and no U.S. legal recourse.
Banking restrictions – federal prohibition deters banks, limiting access to traditional financing and advisory services.
How to choose marijuana stocks
Investors should evaluate:
Market cap: Companies with market caps above $10 billion are large‑cap; $2‑10 billion mid‑cap; below $2 billion small‑cap. Most cannabis stocks fall into small‑ or micro‑cap territory.
Exchange listing: Stocks on NYSE or NASDAQ provide greater transparency; over‑the‑counter (OTC) listings carry higher risk due to limited disclosure.
Analyst coverage: Reputable research firms such as Morningstar currently cover Aurora Cannabis, Canopy Growth, Cronos, Curaleaf, Green Thumb Industries and Tilray. Relying on established analysts reduces hype‑driven noise.
Pure‑play vs. indirect exposure: Pure‑play firms operate solely in cannabis, while indirect players like ScottsMiracle‑Gro or AbbVie combine cannabis with broader businesses, potentially offering more stability.
Do pot stocks deserve a spot in your portfolio?
Cannabis stocks are highly speculative and should not dominate a portfolio. A common guideline is to limit individual stock exposure to no more than 10% and to prioritize diversified index funds.
Diversification, a long‑term horizon of at least five years, and thorough research are essential before committing capital.
Become a marijuana stock investor
Opening a brokerage account takes roughly 15 minutes; most cannabis stocks are available through platforms that list penny‑stock brokers, as highlighted by NerdWallet.
Choose a broker offering low commissions, a broad investment menu, educational resources and responsive support.
After funding the account, conduct research on the company’s business model, growth prospects, and price drivers, then place the order using the ticker symbol.
Neither the author nor editor held positions in the aforementioned investments at the time of publication.
