Americans bought billions worth of cannabis in 2021 and legal pot sales could reach $30 billion in 2022. The Canadian cannabis retail market is expanding too. Yet cannabis stocks took a massive beating, and some popular names lost more than 80% of their value last year.
Absent federal legalization, U.S. pot operators continue to report strong sales growth year-over-year. However, their valuations took a nosedive as investor optimism about federal legalization waned off during the year. It’s expected that cannabis reform in America could significantly improve the operators’ business environment, boost their earnings margins and improve cash flows.
Therefore, I’ve screened for cannabis companies with stock prices below $5 a share, and a minimum market capitalization of $200 million to somehow dampen illiquidity risks on the smallest issues. Both U.S. pot stocks and Canadian cannabis names are represented, irrespective of their primary listing.
Here’s my list of the best marijuana penny stocks to buy…
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