Investment Guide to CBD Stocks: Opportunities in the Post-Euphoria Era

Cannabidiol (CBD), a compound derived from industrial hemp, does not produce psychoactive effects but is believed to offer multiple potential therapeutic benefits. The U.S. federal legalization of hemp-derived CBD under the 2018 Farm Bill initially ignited investor enthusiasm. However, the U.S. Food and Drug Administration (FDA) prohibition on incorporating CBD into dietary supplements significantly dampened market sentiment.

As with all emerging industries, the cooling of initial euphoria in the CBD market may present an optimal entry point for long-term investors to select and hold stocks. Should the FDA revise its policies in the future, the CBD market could experience substantial expansion.

In recent years, the global CBD market has demonstrated remarkable growth with promising prospects. The market size reached approximately $6.05 billion in 2024 and is projected to expand to $24.82 billion by 2033, reflecting a compound annual growth rate (CAGR) of 16.98%. North America, particularly the U.S., remains the largest CBD market globally, while European markets (e.g., the UK, Germany, Netherlands) are also flourishing. The Asian market, by contrast, is still in its early stages.

Below are four CBD stocks worth watching in the U.S. market (data as of September 1, 2025):

Company Name (Ticker)	Market Cap	Dividend Yield	Industry
Cresco Labs (OTC: CRLBF)	$536 million	0.00%	Pharmaceuticals
Green Thumb Industries (OTC: GTBIF)	$2 billion	0.00%	Pharmaceuticals
Jazz Pharmaceuticals (NASDAQ: JAZZ)	$8 billion	0.00%	Pharmaceuticals
Trulieve Cannabis (OTC: TCNNF)	$2 billion	0.00%	Pharmaceuticals

CBD Stock Analysis

1. Cresco Labs
   Headquartered in Illinois, Cresco Labs markets recreational and medical cannabis products across eight states. Beyond cultivation and retail, the company offers branded CBD products, such as Wonder gummies, and holds leading market shares in multiple markets exceeding $1 billion. Through organic growth and acquisitions, it consistently generates robust free cash flow and stands to benefit from potential federal tax reforms related to marijuana rescheduling. Due to federal restrictions, its shares are currently traded only on the U.S. over-the-counter (OTC) market.
2. Green Thumb Industries
   Also based in Illinois, Green Thumb operates retail stores in 14 states, including California and New York. Its Rise dispensaries feature multiple brands, including the CBD-focused Rhythm product line. The company is profitable and generates positive cash flow, with continued growth in adult-use cannabis markets such as New York and Ohio. Additionally, the recreational cannabis market in Minnesota is set to launch in the second half of 2025.
3. Jazz Pharmaceuticals
   Jazz Pharmaceuticals’ connection to CBD stems from Epidiolex, the first FDA-approved cannabis-derived CBD drug (for epilepsy treatment) in 2018. The company acquired GW Pharmaceuticals, the developer of Epidiolex, for $6.7 billion in 2021. Epidiolex is nearing $1 billion in annual sales and has been approved in over 35 countries. Other growth drivers include the sleep disorder drug Xywav, the biliary tract cancer drug Ziihera (launched in December 2024), and Modeyso, a new treatment for diffuse midline glioma approved by the FDA in August 2025.
4. Trulieve Cannabis
   This Florida-based company operates retail dispensaries in nine states and cultivation/processing facilities in seven states. It dominates Florida’s medical cannabis market, with approximately 70% of its retail locations in the state, and holds leading positions in Arizona and Pennsylvania. While most revenue comes from cannabis sales, Trulieve also markets CBD products, such as tinctures. A November 2024 Florida constitutional amendment to legalize recreational marijuana failed to meet the 60% threshold (receiving 56% support), but advocates continue to push for legislation, preserving potential for future growth in its home state.

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