By most accounts, Canada’s experiment with legalizing cannabis has been a complete failure. Five years after the recreational drug was legalized on a national level, most cannabis producers remain deeply unprofitable, struggling to survive, seeing their share prices plunge by more than 90%. Today, most cannabis securities trade as penny stocks. The situation in the U.S. remains stuck in a political quagmire. The federal government in Washington, D.C. has refused to take any meaningful action on cannabis legalization at a national level, with lawmakers content to leave it up to the states to decide whether they want to legalize the drug. That has helped to send the entire industry in North America into a tailspin. If there’s a silver lining for investors, it’s that many cannabis stocks look woefully undervalued after enduring a steep selloff in recent years. Here are the three most undervalued cannabis stocks to buy: November 2023.

Canopy Growth (CGC)

It was at one time the largest cannabis producer in neighboring Canada and a high-flying stock. Sadly, Canopy Growth (NASDAQ:CGC) has been brought low and now trades as a penny stock. Since peaking at $50 a share in 2019, CGC stock declined 99% and currently trades for just 54 cents. The decline is the result of poor sales and a deteriorating financial position. Canopy Growth recently reported a net loss for its fiscal second quarter of CAD 148.2 million.

The latest loss was 25% greater than a year earlier and comes as Canopy Growth’s revenue in the latest quarter declined 21% year-over-year. Company executives said they continue to focus on reducing costs. In recent months, Canopy Growth obtained creditor protection for its BioSteel Sports Nutrition unit with plans to sell that business. And, the company has announced its intention to sell its previous headquarters building back to the original owner — chocolate maker Hershey (NYSE:HSY).

For investors looking for a cheap cannabis stock, Canopy Growth would be it.

Tilray Brands (TLRY)

Tilray Brands (NASDAQ:TLRY) is another once high-flying cannabis stock that looks undervalued and dirt cheap at current levels. In the last five years, Tilray’s share price has fallen 98% to also trade on the penny stock league tables. The decline comes despite Tilray being targeted by retail investors on multiple occasions and treated as a meme stock. Over the past two years, TLRY stock has been as high as $30 a share and as low as $1.50.

In terms of its business, the Canadian cannabis producer is now focused almost exclusively on the U.S. market having moved its headquarters to New York City from Toronto, and as it pushes into the American craft beer market. In August, Tilray announced that it is buying eight craft beer brands from international brewing giant Anheuser-Busch InBev (NYSE:BUD). The deal makes Tilray one of the top five craft brewers in the U.S. The company also continues to wait for cannabis legalization on a national level in the United States.

Aurora Cannabis (ACB)

Also down nearly 100% over the last five years and trading as a penny stock is Aurora Cannabis (NASDAQ:ACB). Like many cannabis producers that targeted the Canadian market when the country legalized the recreational drug on a national level, Aurora Cannabis has struggled with competition from the black market, an oversupplied industry and a lack of movement on national legalization in the U.S. — where the market is much bigger than in the Great White North.

Aurora Cannabis has also struggled with some internal scandals. This past summer, a controversy erupted when it was revealed that the company’s CEO saw his annual compensation rise 40% to $6.7 million at the same time as the company’s stock plunged over 50%. Hampered by poor sales and weak demand for its products, Aurora Cannabis continues to struggle.

Over the last three years, the company has cut more than CAD 400 million in costs and eliminated jobs. Like the other names on this list, ACB stock looks undervalued and cheap at current levels.

On the date of publication, Joel Baglole held a long position in HSY. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.