Despite the recent lackluster performance, cannabis stocks shouldn’t be overlooked. With ongoing legalization efforts in the U.S. and promising research into the plant’s health benefits, the potential for significant returns is immense.

However, not all cannabis stocks are created equal. Some companies, particularly in the edibles industry, continue to make strides and are poised for growth. As we navigate the evolving investment landscape, three cannabis stocks stand out as top picks for June 2024.

These companies benefit from the industry’s tailwinds and the easing pressure on risk assets due to falling bond prices. In this article, we will explore the potential of these promising cannabis stocks and provide insights into why they are worth considering for your portfolio.

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Investors should consider buying these shares today as the valuations of these companies are still relatively reasonable. One shouldn’t wait until they reach their full potential, as paying full price for anything is generally a poor idea.

TerrAscend (TSNDF)

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TerrAscend (OTCMKTS:TSNDF) operates in the U.S. and Canada, producing hemp wellness products and artisanal edibles. The company recently acquired Herbiculture, a medical dispensary in Maryland, which is expected to positively impact EBITDA and cash flow.

In Q2, TerrAscend reported a 12.7% year-over-year revenue growth at $72.1 million and a 50.2% gross profit margin, marking the seventh consecutive quarter of sequential growth. The company anticipates net revenue of at least $305 million and adjusted EBITDA of $58 million for 2023, reflecting 23% and 49% year-over-year growth, respectively.

TSNDF’s smaller market cap compared to other cannabis stocks on major exchanges could potentially lead to higher shareholder value if the stock price increases. With strong financial results and strategic acquisitions, TerrAscend is well-positioned for future success and has breakout potential in the cannabis market.

TSNDF is one of my favorite cannabis stocks to buy for investors who want to invest in a company with a niche focus on edibles.

Green Thumb Industries (GTBIF)

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Green Thumb Industries (OTCMKTS:GTBIF) is a vertically integrated cannabis company that manufactures, processes, and distributes various cannabis products, including concentrates, vapes, pre-rolls, edibles, and topicals. The company also operates retail locations throughout the United States. In the first three months of 2023, Green Thumb Industries experienced slight revenue growth, driven by its retail segment and adult-use legalization in additional markets.