April 2025 Watchlist: Top U.S. Cannabis Stocks Under $5
Investing in marijuana penny stocks continues gaining traction among retail traders and long-term investors. Typically trading under $5, these stocks offer exposure to the fast-growing cannabis market with relatively low capital. The U.S. cannabis industry is expanding rapidly. In 2024, total cannabis sales surpassed $33 billion. By 2027, the market is expected to grow to over $50 billion. This growth is driven by increased state legalization, wider product acceptance, and shifting consumer trends. Recently, there has been movement at the federal level regarding cannabis reclassification. These changes may ease tax burdens and create more financial flexibility for companies. As a result, investor sentiment is improving. This makes penny stocks in the sector especially attractive for short-term trading and long-term growth.
Trading Top Marijuana Penny Stock Volatility
Still, marijuana penny stocks come with notable risks. These companies often face high volatility and liquidity issues. For that reason, traders must use proper technical analysis. Chart patterns, volume indicators, and trendlines can help identify solid entry and exit points. Moreover, risk management is critical when dealing with lower-priced equities. Investors should always use stop-loss orders to limit downside. Diversifying across multiple names can also help manage risk. In addition, staying updated on cannabis legislation is essential. Any policy shifts can strongly impact stock momentum. While the upside may be significant, success depends on a disciplined approach. Combining intelligent technical setups with careful planning offers the best path forward. As always, investing only what you can afford to lose is important.
The U.S. cannabis market remains one of the most closely watched industries among growth investors. With expanding legalization, penny stocks in this sector continue to gain attention. While risk remains high, the potential for long-term gains is equally significant. Among these companies, Curaleaf Holdings Inc. (CURLF), TerrAscend Corp. (TSNDF), and Cresco Labs Inc. (CRLBF) stand out. Each business has a broad footprint, solid infrastructure, and improving financials. These cannabis players also present strong technical setups in early 2025. As such, they are worthy of a closer look this March.
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Top 3 U.S. Marijuana Penny Stocks to Watch in April 2025
- Curaleaf Holdings Inc. (OTC: CURLF)
- TerrAscend Corp. (OTC: TSNDF)
- Cresco Labs Inc. (OTC: CRLBF)
Curaleaf Holdings Inc. (CURLF)
Curaleaf Holdings is one of the largest cannabis companies in the United States. The company has a strong multistate presence. It operates in 19 states and serves a wide range of both medical and recreational customers. Curaleaf has developed a broad portfolio of cannabis products, including flower, vapes, and edibles. The company has built an impressive retail footprint with 151 dispensaries nationwide. Florida is its strongest market, with 66 locations spread across the state. This presence makes it a dominant player in the Southeast region. Moreover, Curaleaf’s ability to scale operations gives it an edge over smaller competitors. The company continues to pursue growth through both organic expansion and acquisitions. As it expands, its customer base grows steadily. With federal legalization still in discussion, Curaleaf remains positioned to benefit from future reform. This March, its brand strength and store count make it a key watchlist name.
Latest Financials
Curaleaf’s latest financial report reflects modest growth. In the fourth quarter of 2024, the company posted $331 million in revenue. This was a small increase compared to the previous quarter. Curaleaf achieved a gross margin of 48% and adjusted EBITDA of $76 million. This figure represented 23% of total revenue, showing solid profitability. For the full year, Curaleaf generated $1.34 billion in revenue. Its international revenue also climbed, rising 73% year-over-year to $105 million. The company reported $163 million in operating cash flow and $70 million in free cash flow. However, Curaleaf did post a net loss of $216 million. This was mainly due to restructuring costs and non-cash expenses. Despite this, cash flow remained positive, which signals operational strength. Overall, Curaleaf’s numbers show a stable foundation with room to improve. Investors should watch for margin expansion and efficiency gains in 2025.
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TerrAscend Corp. (TSNDF)
TerrAscend Corp. is a U.S.-focused cannabis operator with a vertically integrated model. The company is active in several key markets, including Pennsylvania, New Jersey, and Maryland. It also operates in California and Michigan. TerrAscend sells both medical and adult-use cannabis across these regions. It owns a variety of retail stores and has wholesale distribution networks. As of early 2025, TerrAscend operates 37 dispensaries in the United States. New Jersey remains its strongest market, especially following adult-use legalization in 2022. The company has leveraged its early entry into these states to grow quickly. TerrAscend also owns the “The Apothecarium” brand, which is popular among cannabis consumers. Its focus on quality and premium branding helps it stand out in crowded markets. The company continues to expand its presence and strengthen its retail network. For investors seeking exposure to a smaller U.S. operator, TerrAscend is one to monitor this month.
Latest Financials
Financially, TerrAscend has made notable progress. In its most recent quarterly results, the company posted revenue of $89 million. This marked a solid 28% increase compared to the prior year. Adjusted gross profit was $41 million, with an adjusted gross margin of 46%. The company also delivered $15 million in adjusted EBITDA, reflecting improving operating efficiency. TerrAscend reported positive operating cash flow for the third consecutive quarter. This is a major milestone for a cannabis penny stock. Additionally, the company reduced its debt burden by refinancing key liabilities. Net losses have narrowed over the past year, showing better cost control. Although profitability remains a work in progress, financial stability has improved. Management expects continued margin growth through increased vertical integration. TerrAscend is also working to optimize its supply chain to cut expenses further. These trends suggest the company is moving in the right direction financially.
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Cresco Labs Inc. (CRLBF)
Cresco Labs Inc. is a multistate cannabis operator that focuses on branded product distribution. The company owns and operates Sunnyside® dispensaries. It has built a strong retail and wholesale model in the U.S. Cresco is active in several large cannabis markets, including Illinois, Pennsylvania, Ohio, and New York. As of early 2025, the company operates 29 dispensaries under the Sunnyside brand. Its large-scale cultivation and processing facilities support Cresco’s retail locations. The company is especially strong in the Midwest and Northeast. Illinois remains a core market, where Cresco is a top-three seller. Beyond retail, Cresco’s house brands are sold in over 1,000 dispensaries nationwide. This wide distribution network gives Cresco a unique advantage. The company is focused on building national brands while increasing its own retail footprint. With new state markets opening, Cresco is well-positioned to grow in 2025 and beyond.
Latest Financials
Cresco Labs reported a full-year 2024 revenue of $724 million. The company maintained a 52% gross margin, showing strong product pricing and operational discipline. Gross profit reached $364 million, up year-over-year. Cresco also posted adjusted EBITDA of $200 million, a 15% increase from the prior year. This translated into an adjusted EBITDA margin of 28%, which ranks high among peers. Operating cash flow hit $132 million, representing a 126% year-over-year gain. These improvements highlight the company’s focus on efficiency and cash management. However, Cresco still recorded a net loss of $60 million. The loss included one-time tax-related charges and non-cash impairments. Excluding these, underlying performance has improved steadily. Management expects more profitability in 2025 through cost savings and expanded vertical sales. As Cresco optimizes its operations, investors should pay attention to upcoming earnings reports. The stock could benefit from both stronger margins and broader national legalization trends.
These U.S. Marijuana Penny Stocks Could Heat Up in April
These three marijuana penny stocks offer unique growth stories in the U.S. cannabis sector. Curaleaf brings scale, TerrAscend offers agility, and Cresco provides brand strength. Each faces industry headwinds but shows potential for recovery and expansion. With proper risk management, these stocks could offer long-term value for watchful investors in March 2025.
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