SPECIAL REPORT The Top 7 Stocks for 2024

3 Oversold Marijuana Stocks to Buy Now

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  • The marijuana stocks below have great upside and trade below their fair values.
  • Canopy Growth Corporation (CGC): CGC has been working to improve margins and reduce cash burn.
  • Innovative Industrial Properties (IIPR): IIPR pays juicy annual dividends and lowered its risk profile last quarter.
  • Organigram Holdings (OGI): OGI is a major player in Canada and announced an institutional investment last week.
oversold marijuana stocks - 3 Oversold Marijuana Stocks to Buy Now

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Despite some market pessimism surrounding next year and the often prophesied recession, there are still oversold marijuana stocks to buy that offer great value. The companies on this list benefit from the emerging health benefits of these plants and the continued liberalization of what were once illicit drugs in the U.S.

I foresee a rise in these oversold marijuana stocks due to industry tailwinds and falling bond prices, which will ease some pressure on risk assets in the marijuana industry.

Here are three of the best oversold marijuana stocks to consider adding to your portfolio in November.

Canopy Growth (WEED)

The More CGC Stock Flounders, the Less Constellation Can Handle It
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Despite a consensus rating of sell, Canopy Growth’s (NASDAQ:CGC) consensus price target suggests a significant upside over of 100%.

There are good reasons to consider CGC stock. The company is on an upward trajectory, with improved margins and reduced cash burn. Company management is confident they will achieve positive adjusted EBITDA by fiscal year 2024’s end. The confidence comes alongside a strategy that has strengthened the balance sheet.

It’s also moving towards an asset-light model to relieve some pressure from its capital expenditures and buy itself additional runway to scale production. Thus, given its consensus share price upside and improving fundamentals, it’s one of those oversold marijuana stocks to buy.

Innovative Industrial Properties (IIPR)

A close-up shot of a marijuana growhouse. cannabis trends
Source: Shutterstock

Innovative Industrial Properties (NYSE:IIPR) has a hold consensus rating with a sizable upside in its price target. It’s unique as it’s structured as a REIT with a focus on properties leased to regulated cannabis companies.​

As a REIT, IIPR stock has shown some promising developments. Specifically, to demonstrate robust financial health with a 10% year-over-year revenue increase, solid net income growth and substantial adjusted funds from operations. Its risk profile is also attractive, with a low debt-to-asset ratio. And no significant debt maturities until 2026.

Strong dividend payers like IIPR, which has an annual dividend yield of over 9%, will be strong beneficiaries amid falling bond rates. I expect that will begin to happen sometime in the middle of next year as investors turn to these stocks with a hunger for yield.

Organigram Holdings (OGI)

Closeup of mobile phone screen with logo lettering of cannabinoid company Organigram (OGI)
Source: Ralf Liebhold / Shutterstock.com

Organigram Holdings (TSE:OGI) engages in the production and sale of cannabis in Canada and is considered a strong player in the industry.

The bull case for OGI stock is a strong one. First, the company has shown remarkable growth, capturing the #2 market share in Canada’s cannabis sector. It achieved this feat mainly due to its successful pre-roll and gummies businesses. 

Shares recently got a boost due to great news for OGI stock. Last week the company announced it with raise 124.6 million Canadian dollars through a private placement of shares to British American Tobacco (LON:BATS). This caused OGI to jump approximately 33% in pre-market trading.

This investment allows BAT to appoint up to 30% of Organigram’s board members. And it will be used to fund Organigram’s expansion and general corporate activities. With a major investment by BATS behind it and strong market growth, OGI stock has superb future prospects.

On the date of publication, Matthew Farley did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Matthew started writing coverage of the financial markets during the crypto boom of 2017 and was also a team member of several fintech startups. He then started writing about Australian and U.S. equities for various publications. His work has appeared in MarketBeat, FXStreet, Cryptoslate, Seeking Alpha, and the New Scientist magazine, among others.


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