10 Best Marijuana Penny Stocks to Buy in 2022

Do you want to grab the opportunity to buy cheap marijuana penny stocks from the best marijuana companies? The stock market had its worst start in decades in 2022, and the cannabis market has fallen even farther since June of that year. 

Through trading in marijuana penny stocks, some investors have been able to capitalize on the recent dip in market value and generate profits. Penny stocks are classes of publicly traded companies that have a share price that is less than $5. 

Active traders usually employ short-term trading methods when trading penny stocks in the cannabis industry. The following price fluctuations of the leading penny stocks provide them with opportunities to generate weekly and daily profits. 

As we approach the start of a new month, the cannabis business may be putting the finishing touches on something that might spark a revolution in the coming months.

Why is investing in marijuana stocks unique?

It is not a joke to invest in the marijuana market, even though one could remark that marijuana stocks are "dope" or that the industry is "expanding like a weed." 

There are currently 19 states that permit the use of marijuana for recreational purposes, but a much larger number permit its use for medical purposes. 

At first look, it may appear as marijuana stocks are primarily intended for use by retail firms. But if you dig a little deeper, you'll find that the industry comprises several subsectors. 

These sub sectors are where various sorts of firms, such as those specializing in distribution and consumption, biotechnology, and research, make their living.

Despite this, it is essential to remember that this is a relatively new sector, the primary component of which is still classified as a controlled substance at the federal level. 

Because of this, investing in marijuana is inherently dangerous, but this is far from the only reason you should conduct extensive research before purchasing cannabis stocks.

10 best marijuana stocks to buy in 2022

The term "cannabis industry" refers to the collection of businesses involved in the sales and distribution of marijuana in some capacity. While others are involved in the Some concentrate on cannabis research and development.

To phrase it another way, many avenues lead to financial success in this sector. Consequently, putting together a basket of relevant firms is a solid strategy to identify the cannabis stocks that are going to be the most popular.

In this part of the article, we take a more in-depth look at the top 10 marijuana stocks in 2022 currently trading on the market.

1. Innovative industrial

The first stock in the cannabis industry is a real estate investment trust (REIT) (REIT). Innovative Industrial is a corporation with headquarters in San Diego that manages cultivation facilities for medical marijuana around the United States. 

Building greenhouses and other facilities where cannabis can be cultivated and sold contribute to the development of the commercial side of the marijuana industry.

To put it more plainly, the corporation leases real estate to cannabis businesses in the United States and collects rent money in exchange. Thanks to the implementation of this business strategy, Innovative Industrial has enjoyed a great deal of success throughout the past few years. 

The value of one share of stock in this corporation has nearly multiplied by one thousand during the past five years.

2. GrowGeneration

Plants can be grown without the use of soil or organic gardening methods through the use of hydroponics. Plants are cultivated in nutrient-rich liquids. This form of farming is in exceptionally high demand in the cannabis industry in the United States.

Despite this, most of the company's revenue comes from other sectors besides the cannabis market. 

More than fifty retail locations in the United States are owned and operated by GrowGeneration, which offers a diverse selection of gardening tools and materials. The rise in the number of consumers was beneficial to the company, even if it occurred during the COVID-19 pandemic.

GrowGeneration is a retailer that offers various products, including plant food, soil for farming, lighting, and equipment for hydroponics and aquaponics. 

In addition, it has expressed interest in expanding its operations. It has formed a partnership with Horticultural Rep Group, a business specializing in distributing and marketing gardening supplies.

3. Jazz pharmaceuticals

Jazz Pharmaceuticals entered the cannabis industry in 2021 after completing the acquisition of GW Pharmaceuticals. Epidiolex, a medication manufactured by GW, is the first pharmaceutical made from cannabis to receive approval from the FDA. 

In youngsters with epilepsy, this prescription medication has proven to be more successful in the market than industry watchers anticipated.

However, Epidiolex is only one of several items this corporation stands behind. In addition, the company Jazz Pharmaceuticals manufactures a medication for patients with difficulty sleeping called Xywax. 

This business also has a robust platform in the field of cancer, which is yet another opportunity for the corporation to generate revenue.

4. Canopy growth 

Canopy Growth is a cannabis firm that operates out of Canada, where the company's headquarters are located. It is in the business of producing medical marijuana products. 

Thus, it was the first business in New York State to receive a hemp license; the company distinguishes itself from the competition. It is making preparations to launch operations in the United States.

Canopy Growth first started trading on the NYSE in the year 2018. On the other hand, Canopy Growth has not reported a profit since the year 2018. In contrast, the value of Canopy Growth's shares increased by more than 500 percent in 2018, when the cannabis market exploded.

5. Constellation brands 

Constellation Brands is best known for its production of beer. Nevertheless, the company has just entered the cannabis industry through its stake in Canopy Growth. In 2020, Constellation Brands' ownership of Canopy Growth increased to approximately 36 percent. 

This arrangement is expected to generate significant revenue for Constellation Brands between 2017 and 2020.

However, the corporation has been experiencing investment issues ever since 2021. However, the consumer staples business area of Constellation Brands continues to bring in a growing amount of revenue.

6. Hawthorne gardening 

One of the leading producers of hydroponic gardening products for the cannabis market is Hawthorne Gardening, a branch of Scott Miracle. 

Hawthorne Gardening was founded in 1998. Additionally, it has constructed a research and development center that is 5,000 square feet in size to investigate how the company's products influence the expansion of cannabis plants.

However, it is essential to keep in mind that the company generates more than half of its overall income from sales of lawn and garden items. In the same way that it benefited GrowGeneration, the COVID-19 pandemic was also advantageous for Scotts Miracle. 

Its share price reached an all-time high of $254 in April 2021, setting a new monthly record. The price of this stock, however, has dropped significantly since then.

A dividend yield is something that you can get from Scotts Miracle, which is a large-cap stock. The company's running yield was 2.3 percent when this was written.

7. PerkinElmer

Laboratory testing tools are the specialty of the company PerkinElmer, which manufactures such products. It focuses on diagnosis and discovery, on the one hand, and analytical research, on the other. 

In 2019, this company, with headquarters in Massachusetts, announced that it had begun supplying testing equipment for cannabis laboratories. 

This organization ensures that cannabis products are of high quality by analyzing the number of active ingredients they contain.

The worldwide cannabis market will be anticipated to expand by more than 13 percent annually by 2026. However, the expansion of PerkinElmer is not attributable to the company's involvement in the cannabis market.

8. Cronos group

Cronos, a Canadian firm, is one of the most popular stocks trading for less than $5 a share. Cronos manufactures a wide variety of cannabis and CBD products for sale to adults. 

The corporation has operations in a variety of countries and regions all over the world. It includes the United States and Australia. The tobacco conglomerate Altria invested $2.4 billion in the company in 2019, piqued investors' interest in the stock.

This allowed Altria to purchase the controlling position in Cronos and a stake equal to 45 percent of the firm. 

Even with this investment, Cronos has had a difficult couple of years because the cost of labor and supplies has been increasing. The figures for the fourth fiscal quarter of 2021 showed that net sales increased by more than fifty percent.

9. Aurora cannabis

Aurora Cannabis is a global company that cultivates cannabis and distributes goods derived from the plant. This Canadian corporation also has a significant presence in the markets of the United States of America, Italy, Australia, and Germany, amongst many other nations. 

However, like most other cannabis-focused equities, Aurora Cannabis has struggled mightily on the market for the past few years.

The value of Aurora Cannabis shares has decreased by over 90 percent over the previous five years. Even though the company's stock has not performed very well since 2020, this does not imply that the company's underlying business has not seen any growth. 

The corporation reported in its results report for the first quarter of 2022 that there was a ten percent increase in net sales.

10. Tilray

Tilray is a corporation with operations based in Canada that is engaged in the cultivation, processing, and retail sale of goods derived from medical marijuana. Tilray is unique because of its long and exciting history. 

It is not only the largest marijuana company in Europe but also the largest exporter of medicinal cannabis goods. This distinction gives it a double crown.

Additionally, Tilray is the first company based in a country other than the United States to ship CBD goods to China. To put it another way, Tilray has a significant presence in various countries.

It holds licenses allowing it to cultivate, sell, transport, and send cannabis into and out of over twenty nations. Additionally, a significant amount of capital has been invested by the corporation into studies of the medical applications of cannabis.

What are the benefits of investing in marijuana stocks?

A few significant benefits of investing in marijuana stocks are:

1. Highest potential return 

Penny stocks come with an extremely high potential for financial gain. Even a little increase in the price of a stock can result in enormous returns for an investor because a large number of shares can be purchased with minimal money. 

On the other hand, this situation is a double-edged sword, which means that even a slight decline in the stock price might cost you a significant amount of money.

2. Easy access with few requirements

Investors can purchase penny stocks even if they only have a limited quantity of capital to put toward their investments because of the low prices of these companies. Because it is simple to get started, investing in penny stocks is something you might want to consider doing.

3. Potential to invest in the best firm early

You have the opportunity to invest early on in a firm that has the potential to become a market leader, even though penny stocks are more accessible to trade than other types of equities. Although locating businesses with such potential is challenging, it is not impossible to do so.

How can you invest in marijuana penny stocks online?

To purchase marijuana penny stocks, you must open an account with a brokerage. You are lucky because several excellent brokerages put their focus on penny stocks. This is terrific news for you.

Even if you already have an account with a brokerage, it's smart to open a second one with a broker who specializes in trading penny stocks so that you may take advantage of the opportunities this market segment presents. 

A general broker does not compare to these brokers regarding their access to the market, the fees they charge, or the research tools at their disposal.

When choosing a brokerage, the kind of investments it may assist you in earning should be your top priority regarding what to search for. 

Even though trading on OTC markets is dangerous, you should make an effort to find a brokerage that will also allow you access to such marketplaces. Even though you can purchase marijuana penny stocks on the NYSE and NASDAQ, it is still in your best interest to have as many options available to you as possible.

You should also pay attention to research and trade execution tools because they are both highly crucial. Because of how quickly penny stocks move, you need to be quick to respond. 

Research tools are essential because they help you deal with the most significant challenge of trading penny stocks: it is difficult to forecast what will happen.

If you can conduct adequate research on OTC penny stocks, you can make a lot of money because investing in them might involve high risk. Nevertheless, we strongly urge you to use caution. 

When trading OTC penny stocks, it is essential to do a lot of research and to always set profit goals.

It is simple to buy stocks after you have prepared yourself by opening an account with a brokerage, depositing money into that account, and researching the stock market. You only need to proceed in the manner outlined on a specific platform.

What is the future of cannabis stocks?

If the US legalized marijuana in the long run, American cannabis companies could then list on a stock exchange like the NASDAQ or NYSE. It could make it more likely that American institutions will invest in them.

These institutional investments would bring much-needed money into the cannabis market and make it seem more legitimate.

In Canada, there could be a chance to get more coverage from medical benefit plans. Businesses could make money if they took advantage of employers paying for cannabis products for their workers. 

Investing charts always look at the past, but as investors, we have to think about the future, and it can be hard to predict precisely how laws will change. So, the best way to take advantage of future changes in the cannabis industry is to stay focused on what companies are doing now.

Bottom line

When it comes to trading, volatility is a factor that you should welcome. The stock market for marijuana is currently experiencing a lot of buzz and volatility, indicating many opportunities.

But if you aren't prepared, taking these chances can jeopardize your safety. If you genuinely want to make the most of these opportunities, you should prioritize funding your college savings account.

Penny stocks in the marijuana market will play a very significant role in the direction that the cannabis sector goes in the future. 

There are a lot of dangers involved, but if you do your homework and devote the necessary amount of time to the endeavor, these stocks can be an essential component of your overall investment strategy.