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Cannabis sales are expected to reach $35 billion in 2022, a 22% increase from 2021 sales ($29 billion). By 2026, cannabis sales are expected to reach $61 billion. Beyond the U.S., Canadian and international retail markets are growing fast, too.
Despite the fast growth of the global cannabis industry, cannabis stocks performed miserably in 2021, and shares of major players in the U.S. and Canada dropped significantly. However, investors should not lose complete hope in marijuana stocks.
Marijuana penny stocks offer investors low-cost opportunities to dabble in cannabis industry stocks. While penny stocks are high-risk investments, gambling on the right marijuana stocks can yield big gains in the long run.
Here are the best marijuana penny stocks 2022 to consider.
What Are Marijuana Penny Stocks?
Marijuana penny stocks are cannabis companies with stock prices under $5 a share. Some penny stocks trade on large exchanges such as the New York Stock Exchange (NYSE) or Nasdaq, but many penny stocks trade via over-the-counter (OTC) transactions.
While marijuana penny stocks may seem like a bargain compared to other cannabis stocks, penny stocks are highly volatile, are less established than larger companies, and are at a higher risk for fraud. Fractional share trading or high-quality companies with low share prices may be a better investment than marijuana penny stocks.
If you want to diversify your portfolio and take a gamble with penny stocks, follow best trading practices to protect your portfolio.
Interested in taking a risk with cheap pot stocks? Here are the top marijuana penny stocks 2022.
Top Marijuana Penny Stocks 2022
1. Jushi Holdings (JUSHF)
Jushi Holdings is one of the most exciting vertically integrated multi-state operators in the country. In December 2021, the company opened its 28th nationwide location and 18th dispensary in Pennsylvania, a major market for Jushi.
After dropping 54% from its record closing high, Jushi is set to come back with a vengeance. Jushi has been focused on limited-license markets, staking its claim before others do and has even made acquisitions in large markets like California. Jushi’s future looks promising.
2. OrganiGram Holdings
OrganiGram Holdings is a Canadian cannabis producer that is experiencing its highest quarterly growth. On top of rising revenue, OrganiGram has experienced improved gross margins, lower operating losses, and an increasing market share.
A major investment from British American Tobacco in 2021 increased OrganiGram’s liquidity position, allowing them to better scale their operations. In December 2021, the company acquired Laurentian Organic from Quebec, a high-end producer of cannabis and hashish products. Consider this cannabis stock if you’re looking for a budget buy with potential.
3. Sundial Growers (SNDL)
2021’s hottest cannabis meme stock was on a roll, but can it continue its growth in the long run? Sundial Growers’s business model is based on its cannabis and investment operations. Sundial Growers is a pharmaceutical company that makes a wide range of cannabis strains.
Learn how to cash in on the Green Rush!
In terms of the potential of its investments, its acquisition of Alcanna, a liquor and cannabis retailer might increase its retail presence in Canada, thereby increasing profits and its share price to avoid becoming delisted from the Nasdaq Exchange.
4. Columbia Care (CCHWF)
Columbia Care is a cannabis producer, manufacturer, and retailer in medical and recreational markets in 18 U.S. states and Europe. In 2022, the company expanded its large retail presence, including adding five shops in West Virginia and licenses in New York.
Columbia Care’s stunning revenue performance and increase in operating earnings during the 3rd quarter of 2021 could signal great things for the company. Its focus on limited-license markets and innovative retail practices could make it a force to be reckoned with.
5. Planet 13 Holdings (PLNHF)
Unlike multi-state operators, Planet 13 only has two active dispensaries. Their Las Vegas and Orange County SuperStores boast tens of thousand square feet featuring interactive displays, tons of product, and knowledgeable budtenders. Visiting the shops is an unforgettable experience.
On top of its huge menu selection, Planet 13 is focused on bringing cutting-edge technology and personalization to its retail locations. Its Las Vegas store features self-pay kiosks and has personal budtenders for every customer. They have also released proprietary vape products to increase its revenue and brand reputation.
6. High Tide (HITI)
Canadian cannabis retailer High Tide has a presence in the U.S. and Europe. Its acquisitions of grasscity.com, smokecartel.com, and CBDcity.com effectively increase its digital presence in addition to its 111 shops in Ontario, Manitoba, Alberta, and Saskatchewan.
In 2021, High Tide acquired a significant majority of NuLeaf Naturals in Colorado and its 11 brands. High Tide has its sights set on cannabis legalization in the U.S., which would allow it to increase its presence in the biggest market in the world.
7. Marimed Inc. (MRMD)
Marimed is one of the most underrated MSOs in the country and one of the cheapest buys, too. Marimed brands are sold across six U.S. markets and Puerto Rico. From November 2020 to February 2021, the company grew its stock price by 550%.
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Marimed’s 3rd quarter 2021 earnings of $33.2 million were a 147% increase year over year. Compared to other MSOs, its valuation is very cheap despite reporting solid revenue and cash flow and little long-term debt.
How to Invest in Cannabis Stocks
Investing in marijuana stocks isn’t for everyone, especially if you don’t like market volatility. However, placing the right bet on the most promising cannabis companies can yield big rewards. How do you know where to invest? Due diligence is critical before investing in the cannabis industry.
Check out our guide on How to Invest in Marijuana Stocks.
Interested in learning more about pot stocks and the industry in general? Enroll in CTU’s online Master of Marijuana training to become an expert in any major segment of the industry, including law, medicine, extraction, cooking, and business. Enroll in higher cannabis learning today!