What cannabis stocks would you buy?

Screening Filters

1. Theme: The Cannabis Industry

   • Purpose: Restrict results to companies directly involved in the cannabis sector.
   • Rationale: Your query is specifically about “cannabis stocks,” so thematically tagging for The Cannabis Industry ensures we’re not pulling in unrelated companies (e.g., pharma, consumer staples, or agri-business that don’t have a meaningful cannabis exposure). This is the core filter that aligns the universe of stocks with your sector of interest.

2. Market Capitalization ≥ $200,000,000

   • Purpose: Focus on larger, more established cannabis companies rather than micro-cap or very early‑stage firms.
   • Rationale: Cannabis as a sector has many tiny, highly speculative companies with extreme volatility and higher risk of dilution or failure. A minimum market cap of $200M:
     • Tilts the list toward companies with more operating history, capital access, and institutional interest.
     • Reduces exposure to “penny-stock style” names that can be easily manipulated.
   • This makes the output more suitable for “stocks to consider buying” rather than purely speculative bets.

3. Share Price ≥ $1

   • Purpose: Exclude very low‑priced and sub‑dollar “penny stocks.”
   • Rationale: Stocks under $1 are often:
     • At risk of delisting on major exchanges.
     • Subject to reverse splits and more promotional activity.
   • Filtering for price ≥ $1 keeps the list to securities that generally trade on higher‑quality venues and are more appropriate for most investors seeking buy candidates rather than lottery tickets.

4. Monthly Average Dollar Volume ≥ $300,000

   • Purpose: Ensure sufficient liquidity so you can realistically enter and exit positions.
   • Rationale: Dollar volume (price × volume) is a key indicator of how easy it is to trade a stock:
     • A $300k/month minimum removes extremely illiquid names where a single moderate order can move the price.
     • This is important for “recommendable” stocks, because illiquidity increases trading costs, slippage, and execution risk.
   • Compared with your prior screen ($200k), this slightly tighter liquidity filter further improves tradability, which is especially relevant in a niche sector like cannabis.

5. Quarterly Revenue YoY Growth ≥ 0.01% (i.e., positive growth)

   • Purpose: Focus on cannabis companies that are at least growing revenue year‑over‑year, not shrinking.
   • Rationale: When asking what to buy, growth is a key quality dimension:
     • This filter excludes companies with declining sales, which can signal competitive weakness, regulatory/market setbacks, or poor execution.
     • Even a low threshold (>0) ensures we only keep firms that are at least moving in the right direction on top line, which is particularly important in an emerging, still‑scaling industry like cannabis.

Why These Results Match Your Question

• Your core requirement—cannabis exposure—is handled directly by the industry theme filter, so every result is a cannabis stock.
• The market cap, price, and liquidity filters collectively steer the list toward more investable, tradable names, closer to what an analyst might reasonably consider for a “buy” list (as opposed to ultra‑speculative microcaps).
• The positive revenue growth filter adds a basic quality screen, aligning with the idea of recommending stocks with at least some fundamental momentum rather than those with deteriorating business performance.

Taken together, these filters generate a focused list of cannabis stocks that are: (1) actually in the cannabis industry, (2) reasonably established in size, (3) sufficiently liquid to trade, and (4) showing at least some revenue growth—attributes that make them more suitable candidates for further buy‑side analysis.