The federal government changed how it treats marijuana for the first time in over 50 years. In April, the Justice Department moved FDA-approved and state-licensed medical marijuana from Schedule I to Schedule III, and an expedited hearing on broader rescheduling begins June 29. The best cannabis stocks right now are the profitable multi-state operators and supporting businesses that gain the most from this shift: Curaleaf, Trulieve, Green Thumb Industries, Innovative Industrial Properties, Scotts Miracle-Gro, Cronos Group, and Tilray Brands. We screened the sector for companies with real revenue, a path to profit, and direct exposure to the rule change.
How We Picked These Stocks
Dozens of companies call themselves cannabis plays. Most are tiny, unprofitable, and trade for pennies. We filtered for businesses with more than $250 million in market value, meaningful revenue, and a clear way to benefit from reclassification.
We also favored companies that already turn a profit or hold enough cash to survive a long wait for federal change. The result is seven names that span the whole sector: large operators that grow and sell the product, the landlord that owns their buildings, and a supplier that sells them equipment.
A note on where these trade. The largest US operators are listed on over-the-counter markets, not the New York Stock Exchange or Nasdaq, because marijuana remains federally restricted. Each ticker and its exchange is listed below and confirmed with live data.
The List
Curaleaf Holdings (OTC:CURLF)
Curaleaf is the largest cannabis operator in the United States by retail footprint, with dispensaries across more than a dozen states and a growing business in Europe. Its scale gives it buying power and brand reach that smaller operators cannot match.
Why it made the list: Size matters in a business where margins are thin and rules differ by state. Curaleaf sells more product across more markets than any other US operator, and its European arm gives it a second engine that is not tied to American law.
The bull case: If broader rescheduling clears the June hearing, the company's normal tax bill falls sharply, and profit could follow revenue for the first time. International growth adds an option that most rivals lack.
The risk: Curaleaf has carried losses and debt while building scale, and a stall in federal reform would keep the pressure on.
Key number: Operations in more than a dozen US states plus several European countries.
Trulieve Cannabis (OTC:TCNNF)
Trulieve built its business around medical marijuana, with a dominant position in Florida and roughly 169 stores in that single state. That medical focus makes it the most direct winner from the April rule change.
Why it made the list: The Schedule III order covers state-licensed medical marijuana, which is exactly what Trulieve sells. The company already reported about $1.2 billion in 2025 revenue and record adjusted earnings, a measure of operating profit before interest, taxes, and one-time costs.
The bull case: Removing the federal tax penalty on medical sales would drop a large share of that revenue straight to the bottom line. A 2026 push to expand Florida access could lift demand further.
The risk: Heavy reliance on one state means a bad ballot result or a price war in Florida would hit hard.
Key number: About 169 retail locations in Florida, a medical-only market.
Green Thumb Industries (OTC:GTBIF)
Green Thumb is the rare cannabis operator that earns a profit under the current punishing tax rules. It runs the RISE dispensary chain and a portfolio of consumer brands sold in stores across the country.
Why it made the list: Green Thumb posted positive net income even while the 280E tax rule treated it harshly. In 2025 it reported about $1.2 billion in revenue and earnings per share of $0.48, up 60% from the prior year. A company that makes money now should make far more if the tax burden lifts.
The bull case: Disciplined spending and real profits make it the operator most likely to attract larger investors once federal rules ease.
The risk: The stock already reflects its quality, so it trades at a higher multiple than struggling rivals and has less room for a surprise.
Key number: Earnings per share of $0.48 in 2025, up 60% year over year.
Innovative Industrial Properties (NYSE:IIPR)
Innovative Industrial Properties does not grow or sell cannabis. It owns the buildings. The company is a real estate investment trust, or REIT, a structure that buys properties and passes most of its rental income to shareholders as dividends. It buys greenhouses and processing sites from licensed operators, then leases them back on long contracts.
Why it made the list: This is the lowest-risk way to own the theme. IIPR trades on the New York Stock Exchange, pays a large dividend funded by rent, and collects that rent whether or not its tenants strike it rich. For income investors, see our guide to the best dividend stocks for how it compares.
The bull case: Reclassification would strengthen its tenants' finances, lowering the risk of missed rent and supporting the dividend.
The risk: A few large tenants drive most of the rent, so one operator's failure would sting.
Key number: A double-digit dividend yield funded by long-term lease payments.
Scotts Miracle-Gro (NYSE:SMG)
Scotts Miracle-Gro is best known for lawn and garden products, but its Hawthorne division sells lighting, nutrients, and hydroponic systems to cannabis growers. It is the classic supplier play: it profits when growers expand, without touching the plant itself.
Why it made the list: Scotts is a profitable, dividend-paying company on a major exchange, founded in 1868. Its Hawthorne arm gives investors cannabis exposure with the safety net of a large consumer business and a household brand portfolio that includes Miracle-Gro and Ortho.
The bull case: Broader legalization would spur new grow operations, and Scotts supplies the gear they need. The core garden business funds the dividend in the meantime.
The risk: Hawthorne sales have swung hard with the cannabis cycle, and a slow recovery would weigh on growth.
Key number: A consumer business founded in 1868 backing the cannabis supply arm.
Cronos Group (NASDAQ:CRON)
Cronos Group is a Canadian producer with one feature that sets it apart in a cash-strapped industry: a large pile of cash on its balance sheet and very little debt. That gives it staying power most rivals lack.
Why it made the list: Cannabis is a waiting game, and Cronos can afford to wait. Its strong balance sheet lets it fund growth, weather slow markets, and pursue deals without raising money on bad terms.
The bull case: When demand turns, a debt-free company with cash can buy assets cheaply and expand while others retrench.
The risk: Revenue is modest, and the company has yet to prove it can turn its cash into steady profit.
Key number: A net cash position with minimal debt.
Tilray Brands (NASDAQ:TLRY)
Tilray is one of the most widely traded cannabis names, and it has spread beyond the plant into craft beer and beverages. That diversification cushions it when cannabis sales are weak.
Why it made the list: Tilray offers liquid, exchange-listed access to the theme plus a real beverage business that generates revenue today. It is positioned to move quickly if US rules open up.
The bull case: A diversified base and a recognized brand give Tilray more ways to win than a pure grower has. US reform would be a clear catalyst.
The risk: The stock has fallen sharply from past highs, and heavy share issuance has diluted existing owners.
Key number: A business spanning cannabis, craft beer, and beverages.
Cannabis Stocks at a Glance
The State of the Cannabis Market
After years of false starts, the rules are finally moving. The April reclassification of medical marijuana to Schedule III matters because of a tax rule known as 280E. That rule blocks businesses selling federally restricted drugs from deducting normal costs like rent, payroll, and marketing.
The effect has been brutal. Cannabis companies often pay tax on gross profit rather than actual profit, leaving even strong operators with little to show. Schedule III status lifts that penalty for the products it covers, which is why medical-focused operators jumped on the news.
The catch is that the change is narrow. Recreational marijuana, the larger market, stays in Schedule I for now. The June 29 hearing will decide whether reclassification expands to cover the whole industry. That single decision is the swing factor for the entire sector, and it explains why these stocks trade more on Washington headlines than on earnings.
For investors, cannabis is still a speculative corner of the market, closer in risk to the names in our best growth stocks guide than to a blue chip. The medical angle also ties the group to broader healthcare trends, since reclassification opens the door to more research. The opportunity is real, but so is the chance that reform stalls again.
What to Watch
- The June 29 hearing: The DEA proceeding on broader rescheduling runs through mid-July and could extend Schedule III treatment to the full industry.
- State ballot measures: Expansion votes in large markets like Florida would lift demand for the operators that dominate those states.
- Banking reform: Any movement on letting banks serve cannabis companies would cut costs and improve access to capital across the sector.
Bottom Line
Cannabis stocks are a bet on federal reform, and that bet looks better than it has in years after the April rule change. The safest ways to play it are the supplier and the landlord, Scotts Miracle-Gro and Innovative Industrial Properties, which earn money regardless of the headlines. The bigger upside, and the bigger risk, sits with the operators that would see profits jump if 280E disappears for good. Size your position accordingly.
Frequently Asked Questions
What are the best cannabis stocks to buy right now?
The strongest cannabis stocks right now are the profitable multi-state operators and supporting businesses positioned for federal reform: Curaleaf, Trulieve, and Green Thumb Industries among the operators, Innovative Industrial Properties as a cannabis REIT, Scotts Miracle-Gro as a supplier, and Cronos Group and Tilray Brands among diversified producers.
How does Schedule III rescheduling affect cannabis stocks?
Schedule III status removes the 280E tax rule for the products it covers. That rule forced cannabis companies to pay federal tax on gross profit without deducting normal expenses, crushing their margins. Lifting it for state-licensed medical marijuana lets covered operators keep far more of their revenue, which is why medical-focused names like Trulieve react most to the news.
Why do most US cannabis stocks trade over the counter?
Because marijuana remains federally restricted, the major US exchanges have not listed plant-touching operators like Green Thumb or Curaleaf. These companies trade on over-the-counter markets instead. Exchange-listed options such as Innovative Industrial Properties, Scotts Miracle-Gro, and Tilray let investors gain exposure through the New York Stock Exchange or Nasdaq.
Are cannabis stocks a good investment for retirement accounts?
Cannabis stocks are speculative and tied closely to uncertain federal policy, so they carry more risk than most retirement holdings. Investors who want exposure often favor lower-risk options like the cannabis REIT Innovative Industrial Properties, which pays a dividend, or a diversified supplier like Scotts Miracle-Gro, rather than the volatile pure-play operators.
What is the difference between medical and recreational cannabis rescheduling?
The April 2026 order moved only FDA-approved and state-licensed medical marijuana to Schedule III. Recreational marijuana, which is the larger market, remains in Schedule I. The DEA hearing beginning June 29 will consider whether to extend reclassification to the entire industry, which would be a far larger catalyst for the sector.
