2 Top Marijuana Stocks In The Cannabis Sector 2025

Cannabis stocks, including major players like Curaleaf, Verano, and Green Thumb, have experienced significant declines, with ETFs like AdvisorShares Pure US Cannabis ETF dropping nearly 40% in 2024 amid wholesale price pressures and regulatory hurdles; however, state-level legalization efforts in New York, California, Ohio, and Michigan, coupled with potential federal reclassification or legalization, present potential catalysts for long-term growth, making companies like Planet 13 Holdings Inc. and Green Thumb Industries Inc. attractive for investors with a long-term outlook.

Analysis

The cannabis sector, as of 2025, stands at a pivotal point following significant share price declines in 2024, notably the AdvisorShares Pure US Cannabis ETF (MSOS) which fell by nearly 40%, and substantial drops for major operators including Curaleaf, Verano, and Green Thumb Industries. This downturn, reflected in a negative sentiment of -0.6 for MSOS, is attributed to sustained pressure from low wholesale cannabis prices and ongoing regulatory uncertainties. Despite these challenges, the overall market sentiment is moderately positive (0.6) with an optimistic tone, primarily fueled by the potential for transformative catalysts such as the U.S. federal government reclassifying marijuana from Schedule I to Schedule III or enacting comprehensive federal legalization. Further bolstering this outlook is continued state-level market expansion: New York has surpassed $1 billion in annual cannabis sales, California has introduced cannabis cafes, and states like Ohio and Michigan are launching consumption lounges, all aiming to increase per-visit spending and enhance the sector's legitimacy. Against this backdrop, companies like Planet 13 Holdings Inc. (PLNH; sentiment 0.4), which recently announced its CFO's resignation effective May 31st, 2025, and Green Thumb Industries Inc. (GTBIF; sentiment 0.5), which is sponsoring a cannabis and music festival in September 2025, are highlighted as potentially attractive long-term investments. The current suppressed valuations may thus represent a strategic entry opportunity for investors anticipating these regulatory and market maturation developments.

Key Decisions for Investors

• Investors with a long-term investment horizon could view the current depressed valuations across the cannabis sector as a potential strategic entry point, contingent on positive federal regulatory shifts.
• Diligent monitoring of U.S. federal progress on cannabis reclassification or legalization is essential, as these events represent the most significant potential catalysts for a broad sector re-rating.
• It is advisable to critically assess individual company fundamentals, including management stability as seen with Planet 13 Holdings' CFO transition, and proactive market development strategies, such as Green Thumb Industries' consumer engagement initiatives, before allocating capital in this dynamic industry.