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Weed Stocks in Canada: Top Picks for 2024

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Written by Tim-bot
Reviewed by Friedrich Odermann Fact-checked by Ed Weinberg
Updated 12/5/2023 19 min read

The cannabis industry in Canada has been a rollercoaster ride since legalization, and 2024 is shaping up to be another pivotal year. For traders and investors, navigating this sector requires a keen understanding of the market dynamics and the ability to spot opportunities amidst the volatility. This guide dives into the world of weed stocks in Canada, offering insights and analysis to help you make informed decisions.

You should read this article because it offers a comprehensive guide on navigating the volatile yet promising world of Canadian weed stocks in 2024, providing insights and analysis crucial for informed trading decisions.

I’ll answer the following questions:

  • What are weed stocks?
  • How has Canada’s legalization of marijuana impacted the stock market?
  • What are the top weed stocks in Canada to watch in 2024?
  • How does the Canadian cannabis industry’s size and potential shape investment opportunities?
  • What are the key developments in the Canadian weed stock market?
  • How do Canadian marijuana stocks compare to U.S. counterparts?
  • What are the risks and rewards of investing in weed stocks?
  • How does the future look for weed stocks in Canada?

Let’s get to the picks!

Table of Contents

What Are Weed Stocks?

Weed stocks represent companies in the burgeoning cannabis industry, encompassing everything from cultivation of the marijuana plant to the sale of hemp-based products. These stocks are part of a sector that’s rapidly evolving, influenced by changing regulations and consumer preferences.

Investing in weed stocks often means dealing with high volatility and significant market fluctuations. Traders need to understand the unique aspects of these businesses, from equity and debt structures to sales and revenue (ROE) performance.

The cannabis sector, including companies like Tweed and Green Organic, offers a diverse range of investment opportunities, from ETFs and dividend stocks to growth-oriented firms. As with any investment, it’s crucial to have a well-rounded portfolio, considering factors like diversification, market trends, and the overall economic landscape.

And don’t fall in love…

The Rise of Cannabis Stocks in Global Markets

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Cannabis stocks, often referred to as weed stocks, represent companies involved in the legal cannabis industry. This sector has seen a surge in global markets, driven by increasing legalization and acceptance of cannabis for both medical and recreational use. As a trader, it’s crucial to understand that these stocks can be highly volatile, influenced by regulatory changes, market sentiment, and company-specific news. The rise of cannabis stocks reflects a significant shift in societal attitudes and offers a unique blend of risks and opportunities for investors.

The Landscape of Marijuana Stocks in Canada

The Canadian marijuana stock landscape is a dynamic and evolving space, deeply influenced by the country’s progressive stance on cannabis legalization. Key players in this market include corporations like Aurora Cannabis (ACB) and smaller, niche firms, all operating within the broader sectors of healthcare and consumer goods. The landscape is not just confined to Canada; companies are expanding their reach to countries like Germany and Australia, navigating different regulatory environments and tapping into new markets.

Investors should focus on the diversity of these companies’ operations, from cultivation in Ontario to retail in Smiths Falls, and consider how global economic factors, such as oil and natural gas prices, might indirectly impact the sector.

It’s also insightful to explore related sectors like tobacco stocks. Canadian tobacco stocks offer a different investment profile, often characterized by more stability and long-standing market presence. These stocks can be a strategic addition to a diversified portfolio, balancing the high volatility of weed stocks. For investors looking to broaden their scope beyond cannabis, understanding the dynamics of the tobacco industry in Canada is crucial. Dive deeper into this sector with insights on the best Canadian tobacco stocks, offering a comprehensive view of potential investment opportunities.

Historical Context: Canada’s Legalization of Marijuana

Canada’s historic move to legalize marijuana in 2018 marked a turning point for the cannabis industry. This decision opened the doors for companies to operate legally, leading to the emergence of numerous cannabis stocks on the Toronto Stock Exchange (TSX) and NASDAQ. As a trader, it’s important to recognize how this legalization has shaped the market, influencing everything from company valuations to investor sentiment.

Impact of Legalizing on the Canadian Stock Market

The legalization of marijuana in Canada had a profound impact on the stock market. Initially, there was a surge in cannabis stocks, driven by high investor expectations and speculation. However, the reality of regulatory challenges, oversupply issues, and profitability concerns led to volatility and corrections in the market. Understanding these dynamics is key to navigating the cannabis sector, as it requires a balance between recognizing potential and acknowledging the inherent risks.

Top Weed Stocks in Canada to Watch in 2024

My top Canadian weed stocks to watch are:

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

Sign up for my NO-COST weekly watchlist to get my latest picks!

SNDL Inc. (NASDAQ: SNDL)

My first Canadian weed stock pick is SNDL Inc. (NASDAQ: SNDL).

If you want a perfect example of a Tim Sykes supernova, look at the SNDL spike in 2021.

It’s how I profited $5,250 from one trade (starting stake was $102,750).

There was a spike, a consolidation, and then an even bigger spike that pushed through the highs.

I included a video below of a more recent supernova for comparison …

All told, SNDL ran over 740% that year.

Since then, the chart’s been decently active and has managed a spike here and there. But something big is coming …

The Canadian company is attempting expansion into the U.S.

The news was announced on April 30, and around that time the price spiked over 50%.

Nothing’s set in stone yet, which means we’re still awaiting formal notice of the company’s expansion. And given the recent volatility, I think a press release like that could wake up this former supernova.

Cronos Group Inc. (NASDAQ: CRON)

My second Canadian weed stock pick is Cronos Group Inc. (NASDAQ: CRON).

Altria Group (NYSE: MO) is one of the largest tobacco companies on the planet. In 2018, it acquired 45% of CRON for $1.8 billion.

That stake has cost the company. But cannabis expansion still makes sense for Altria’s game plan.

Altria has since explored selling CRON. No one knows if this will happen.

As a business, Cronos has been disappointing.

But there’s no other stock on this list with the kind of backing behind it that Altria represents

Tilray Inc. (NASDAQ: TLRY)

My third Canadian weed stock pick is Tilray Inc. (NASDAQ: TLRY).

Tilray was the first cannabis stock to trade on a major U.S. stock exchange. In December 2020 it merged with Canadian producer Aphria. That made Tilray the largest cannabis company in the world.

Tilray was a sector leader during the 2021 run. Even though it hasn’t made the same kind of moves since, it’s still among the first to run.

Just take a look at summer 2023. On its multi-week run, this stock doubled in value.

It’s since given back most of its gains. But you shouldn’t worry about that. All that matters for smart traders is its volatility.

Look at how many spikes are in this chart. Next time the sector heats up, Tilray will be ready to run.

Canopy Growth Corp. (NASDAQ: CGC)

My fourth Canadian weed stock pick is Canopy Growth Corp. (NASDAQ: CGC).

Canopy is another sector leader. Before its stock fell in 2019, it was the largest cannabis stock by market cap in the world.

While its chart is a bit more dead that Tilray’s, it’s still a heavyweight in the sector.

The nearly 300 million shares this stock can occasionally trade means Canopy will likely run in sympathy on a big sector catalyst.

To pot stock traders, it isn’t about the underlying fundamentals. It’s about the runs a stock has made in the past.

Traders remember stocks that have made or lost them money. That’s why an underperforming stock like CGC still attracts 50 times the volume of the next stock on this list.

With increased volume comes increased volatility. And that volatility can make for some great trades.

OrganiGram Holdings Inc (NASDAQ: OGI)

My fifth Canadian Canadian weed stock pick is OrganiGram Holdings Inc (NASDAQ: OGI).

In November 2023, OGI caught traders’ attention with a substantial investment from British American Tobacco, signaling potential growth and development in strategic areas. The stock’s volatility on this news makes it a candidate for watchlists, as the market reacts to the evolving partnership and its implications for market performance.

Understanding the Cannabis Industry in Canada

Understanding the Canadian cannabis industry requires a deep dive into the complexities of this unique market. It’s a sector that extends beyond just the sale of marijuana products, encompassing areas like personal finance, corporate finance, and even the broader economy.

The industry faces its own set of challenges and opportunities, from navigating stringent regulations and taxes to capitalizing on the growing acceptance of cannabis. Companies within this space must manage their finances effectively, balancing budgets and spending to ensure profitability and sustainability.

For investors, understanding the nuances of this industry, from the impact of a recession to shifts in energy prices, is crucial for making informed decisions.

Size and Potential of Canada’s Cannabis Industry

Canada’s cannabis industry is not just about growing and selling marijuana; it’s a complex sector encompassing production, distribution, and retail. The industry has experienced significant growth, with projections suggesting continued expansion. As a trader, it’s essential to look beyond the surface and understand the factors driving this growth, such as consumer demand, product innovation, and international market opportunities.

The Largest Cannabis Retailers in Canada

The Canadian cannabis market is home to some of the largest retailers in the industry. Companies like Canopy Growth Corp and Aurora Cannabis have established themselves as major players, with extensive distribution networks and a wide range of products. These retailers play a crucial role in shaping the market dynamics, and their performance can significantly impact the overall sector.

Key Developments in the Canadian Weed Stock Market

The Canadian weed stock market has seen several key developments that have shaped its current state. These include strategic mergers, acquisitions, and significant business agreements, reshaping the competitive landscape. Regulatory changes continue to play a pivotal role, affecting everything from product rights to taxation, with direct implications for company valuations and investor sentiment.

Keeping abreast of these developments is essential for investors, as they can significantly impact stock prices and market dynamics. Additionally, understanding the broader economic context, from shifts in the finance sector to global economic trends, is vital for a comprehensive analysis of this market.

Canadian oil stocks are a vital component of the national economy and can impact broader market trends, including those affecting cannabis stocks. For traders who aim to have a well-rounded understanding of the Canadian market, keeping an eye on the oil sector is essential. Gain insights into this critical industry and its top players by exploring the top oil stocks in Canada, a guide to understanding another influential market segment.

Mergers, Acquisitions, and Notable Business Moves

The Canadian cannabis market has seen a flurry of mergers and acquisitions, as companies strive to consolidate their positions and expand their reach. These business moves can have a significant impact on stock prices and market dynamics. As a trader, staying informed about these developments is crucial for identifying potential trading opportunities and understanding the strategic direction of the industry.

Regulatory Changes and Their Impact

Regulatory changes are a critical factor in the cannabis industry. Changes in laws and policies can open up new markets or impose restrictions, directly affecting companies’ operations and profitability. Keeping a close eye on regulatory developments is essential for traders, as these changes can create volatility and opportunities in the market.

Comparing Canadian Marijuana Stocks

Comparing Canadian marijuana stocks to their global counterparts involves examining a range of factors, from market capitalization and sales volume to the regulatory environment and product offerings. Canadian firms, operating in a more mature legal market, often have a different risk profile compared to those in regions where regulations are still evolving. Investors should consider aspects like equity, debt, and dividend policies when comparing these stocks.

Additionally, understanding the broader context in which these companies operate – from the overall health of the economy to trends in related sectors like energy and natural resources – is crucial. This comparison requires not just a focus on the cannabis sector but a holistic view of the market and its myriad influences.

How Canadian Weed Stocks Compare to U.S. Counterparts

When comparing Canadian weed stocks to their U.S. counterparts, several differences become apparent. The legal landscape in Canada offers a more stable environment for cannabis companies, whereas the U.S. market is fragmented due to varying state laws. This difference impacts everything from market access to investment opportunities. Canadian companies also tend to have a broader international presence, giving them a diversified revenue stream.

Risks and Rewards of Investing in Weed Stocks

Investing in weed stocks comes with its own set of risks and rewards. The volatility of the market can lead to significant gains, but also substantial losses. Factors like regulatory changes, market saturation, and company-specific issues can all impact stock performance. As a trader, it’s important to conduct thorough research, understand the risks, and have a clear strategy when investing in this sector.

Diversification is key for investors. Renewable energy stocks in Canada represent a growing sector with potential for long-term growth, driven by global shifts towards sustainable energy solutions. These stocks can offer a balance to the high-risk nature of cannabis investments, providing stability and tapping into a different aspect of the Canadian economy. For a more diversified investment approach, explore the best renewable energy stocks in Canada, highlighting top picks in this promising sector.

Key Takeaways

The Canadian weed stock market offers unique opportunities for traders and investors. Understanding the industry’s landscape, keeping abreast of regulatory changes, and carefully analyzing individual companies are key to navigating this volatile sector. Remember, investing in cannabis stocks requires a balance of caution and strategic thinking. Stay informed, stay disciplined, and always be prepared to adapt to the ever-changing market conditions.

Trading isn’t rocket science. It’s a skill you build and work on like any other. Trading has changed my life, and I think this way of life should be open to more people…

I’ve built my Trading Challenge to pass on the things I had to learn for myself. It’s the kind of community that I wish I had when I was starting out.

We don’t accept everyone. If you’re up for the challenge — I want to hear from you.

Apply to the Trading Challenge here.

Trading is a battlefield. The more knowledge you have, the better prepared you’ll be.

What Canadian weed stocks are on your watchlist? Let me know in the comments — I love hearing from my readers!

Frequently Asked Questions

How Do Canadian Weed Stocks Compare Internationally?

Canadian weed stocks are often seen as pioneers in the global cannabis market, thanks to Canada’s early legalization of marijuana. This has given Canadian companies a head start in terms of experience, production capacity, and international partnerships. However, as other countries begin to liberalize their cannabis laws, Canadian companies face increasing competition. Understanding these international dynamics is crucial for traders looking to invest in the global cannabis market.

What are the Risks Associated with Investing in Weed Stocks?

Investing in weed stocks carries several risks, including market volatility, regulatory changes, and company-specific challenges. The cannabis industry is still in its early stages, and many companies are yet to prove their long-term profitability. Additionally, shifts in consumer preferences and potential oversupply issues can impact stock prices. Traders need to be aware of these risks and approach cannabis investments with a well-thought-out strategy.

How Does the Future Look for Weed Stocks in Canada?

The future of weed stocks in Canada looks promising but uncertain. The industry is expected to continue growing, driven by product innovation, international expansion, and increasing acceptance of cannabis. However, the market is also likely to face challenges such as regulatory hurdles and competition. For traders, this means there will be opportunities, but also the need for careful analysis and strategic decision-making.

What Information Should You Look for in Weed Stocks Articles?

When researching the best weed stocks in Canada, look for articles with detailed information, including data and expert opinions. These articles should display levels of stock performance, reasons behind market action, and offer an opportunity analysis. Ratings and reviews from credible sources can also provide valuable insights.

How Important are Expert Reviews and Ratings for Weed Stocks?

Expert reviews and ratings are crucial in evaluating weed stocks. They offer an informed opinion, usually based on a thorough analysis of data and market trends. Look for content that includes metrics and reasons experts give for their ratings, as this can guide your investment choices.

What Role Do Banks Play in Weed Stock Investments?

Banks can influence weed stock investments by their level of involvement or support in the cannabis industry. Investors should understand the purposes and stance of banks regarding weed stocks, as this may impact the stability and growth potential of these investments.

Can Crude Oil and Gold Trends Affect Weed Stocks in Canada?

While crude oil and gold are different asset classes, their market trends can sometimes indirectly affect weed stocks. Investors should consider these trends as part of a broader market analysis, understanding how shifts in these commodities might impact investor sentiment towards weed stocks.

How Do Currency Converters and Metrics Aid in Weed Stock Analysis?

A currency converter can be essential for international investors looking at Canadian weed stocks, helping them understand investments in their currency. Metrics, on the other hand, provide quantifiable data, such as market cap in millions, crucial for assessing the size and growth potential of a company.

Why Is it Essential to Have a Variety of Information Sources for Weed Stocks?

Diversifying information sources, such as articles, data, expert opinions, and quotes, is essential for a well-rounded understanding of weed stocks. Each source offers a different perspective, contributing to a more comprehensive view of the market and better-informed investment decisions.

How Do Outside Factors Influence Weed Stocks?

The amount of funds invested in weed stocks and the legislation in various states significantly shape the investment advice available. An investment menu that includes weed stocks often reflects the legal status of cannabis in different states, impacting the risk and potential return. Expert advice typically considers these factors, guiding investors on allocating the right amount of their funds to these stocks based on current market conditions and state regulations.


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Author card Timothy Sykes picture

Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (205) 851-0506 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”