TPB, ACB and JAZZ: Three Pot Stocks Flowering With Potential Upside

TipRanks

Sat, Mar 22, 2025, 1:09 PM 6 min read

After bursting onto the scene several years ago with considerable fanfare, much of the hype about cannabis stocks has quietly died down, and share prices have largely followed suit. Here, we’ll examine three profitable and cheap cannabis-related stocks that offer investors long-term value and potential upside: Turning Point Brands (TPB), Aurora Cannabis (ACB), and Jazz Pharmaceuticals (JAZZ).

• Easily identify stocks' risks and opportunities.

• Discover stocks' market position with detailed competitor analyses.

Having been illegal for decades, cannabis is seeing the light of day following spates of deregulation across the U.S., Canada, Australia, and Europe over the past decade. Cannabis stocks, otherwise known as pot stocks, have understandably emerged to mop up the huge pent-up demand for cannabis products. Whether it be medicinal, industrial, or recreational, the cannabis market is now a commercial entity being monetized across the U.S. and Canada.

In the U.S., after an initial sentiment boost following legalization, the cannabis market has cooled. The AdvisorShares Pure US Cannabis ETF (MJUS), which tracks U.S. cannabis stocks, traded at over $50 a share in early 2021 but now trades for just $2.68. Tilray Brands (TLRY), one of the earliest and most hyped pure-play publicly traded cannabis companies, traded for over $145 a share in late 2018 but today is priced at less than a dollar. It’s hard to understate how poorly many of these pure-play cannabis stocks have performed.

While it has been a difficult space to invest in, the industry still harbors potential — recreational marijuana is now legal in 24 U.S. states (plus Washington D.C.), while medical marijuana is legal in 39 (that said, it’s important to note that it is still classified as a Schedule 1 Drug by the Federal Government). Grand View Research predicts the global legal cannabis market will grow to $102 billion by 2030, suitable for an impressive 25.5% CAGR.

For investors still interested in the industry and gaining exposure to the space, the good news is that the sector has matured, and there are plenty of innovative ways to invest in it rather than speculating on questionable stocks with little earnings.    

Turning Point Brands (TPB) is an interesting way to enter the cannabis space. While it is not a pure-play cannabis company, it sells Zig-Zag rolling papers and is part of the industry. It is also included in New Cannabis Ventures’ Global Cannabis Stock Index.