Why consider a controversial sector such as cannabis stocks? Let’s be real – you want to have an opportunity to make serious money. Now, the tried-and-true approach is to consider blue chips or other established names. Ride them up over a number of years and then call it a day. However, some folks just don’t want to spend that kind of time.

And that’s where cannabis stocks come into view. Sure, there are legitimate fundamentals to consider. For example, the broader pharmaceutical industry has been looking into alternative therapeutic solutions. Some of these solutions involve the much-maligned plant. And legislative winds in the U.S. have been steadily making progress toward the ultimate goal: full federal legalization.

We’re not quite there yet and it may be some time to get to that point. However, the anticipation of that event could drive significant growth. And that’s why these flawed, risky cannabis stocks below attract plenty of attention.

Trulieve Cannabis (TCNNF)

A vertically integrated cannabis firm, Trulieve Cannabis (OTCMKTS:TCNNF) controls the entire production chain. That means it’s involved in the cultivation, distribution and retailing of cannabis products. Primarily, the company focuses on the medicinal-use market. Also, it’s well known for its wide network of dispensaries, with a strong presence in Florida.

To be sure, analysts love TCNNF stock, rating it a unanimous strong buy. However, the company does have some financial challenges, which isn’t at all uncommon among cannabis stocks. For example, in the past four quarters, Trulieve incurred a loss per share of 65 cents. That came in much wider than the anticipated red ink of 16 cents.

Also, TCNNF stock trades at 1.82X trailing-year sales. Between the first quarter of 2023 to Q1 2024, the average sales multiple sat at 1.07X. That said, analysts believe that over the next two years, Trulieve will see growth averaging 4.7%, culminating in sales of $1.24 billion. Also, expected loss per share may drop down to 12 cents by the end of fiscal 2025.

Green Thumb Industries (GTBIF)

A multi-state operator, Green Thumb Industries (OTCMKTS:GTBIF) is another powerhouse within the realm of cannabis stocks. It’s involved in multiple tiers of the value chain, including cultivation, manufacturing and retail. The company specializes in a wide range of cannabis-based products. As well, it has expanded across several states. Brand development is one of its core attributes.

What separates Green Thumb from many other cannabis stocks is the underlying financial substance. In the past four quarters, the company posted an average earnings per share of 6 cents. That alone is notable. Further, this figure beat the collective consensus view of 5 cent, leading to an earnings surprise of 27.5%.

Compared to Trulieve Cannabis, Green Thumb commands a much higher premium; specifically, GTBIF stock trades at 2.59X trailing-year revenue. However, it’s a modest bump higher from the prior year’s average metric of 2.42X.

For fiscal 2024, analysts anticipate EPS to hit 29 cents, a lift of 93.33%. On the top line, sales may rise to $1.12 billion, implying a gain of 6.6%.

Innovative Industrial Properties (IIPR)

While not nearly as exciting as pure-play cannabis stocks, Innovative Industrial Properties (NYSE:IIPR) deserves special consideration. Structured as a real estate investment trust or REIT, Innovative isn’t directly involved in “botanical” production. Rather, it focuses on acquiring and leasing properties to state-licensed medical cannabis operators. Essentially, the enterprise helps businesses in the sector to expand and succeed.

Thanks to Innovative’s business model, it should be less risky than direct cannabis stocks. Its financials bear this out. In the past four quarters, the REIT’s average EPS landed at $1.43. This was a modest improvement over the consensus view of $1.42. Nevertheless, the takeaway is that the company has been consistently profitable.

IIPR stock trades at 11.19X trailing-year sales, which is high, there’s no question about that. However, the entity also pays a forward dividend yield of 6.23%. That needs to be taken into account.

Over the next two years, there’s a turbulent path toward top-and-bottom-line expansion. By the end of 2025, EPS could land at $5.84 on sales of $325.76 million. Last year, EPS was $5.77 on revenue of $309.51 million.

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