Cannabis stocks have been creating quite a buzz on the stock market. Ever since the substance was legalised as a medicinal product, many cannabis-based companies have emerged. Moreover, with the sector expected to reach $95 billion in 2026, I believe it is an excellent opportunity for investors like me to jump on the bandwagon right now.

I have previously discussed the investment worthiness of the cannabis stock, Kanabo. However, I’ve spotted another two, which I think are a great buy today for my portfolio.

The largest hydroponics supplier 

GrowGeneration (NASDAQ:GRWG) is the largest hydroponics supplier in the United States, with a network of 58 stores in twelve states. Founded in 2014, the company has been on a growing streak since the demand for cannabis-based products spiked. As a result, its revenues have more than doubled in the last three years.

GrowGeneration is taking advantage of the recently accelerated push towards e-commerce solutions. Online sales last year came in at $10.6m. Today they are 120% higher as the firm continues to improve its online shopping experience for users.

This rapid growth has raised management’s expectations regarding revenue. And now, the company expects the gross income to reach $475m by the end of its 2021 fiscal year. Moreover, as part of its expansion-based growth strategy, the hydroponics supplier has added 14 new locations to its portfolio, further increasing its market presence.

Today, this cannabis stock is trading at $27.60 per share. But that comes after some substantial decline throughout 2021. And yet, despite this, the prices to earnings ratio still sits around 90. Needless to say, that’s quite a lofty valuation. With such high expectations from investors, the slightest sign of trouble could trigger some significant volatility. However, personally, I think the risk is worth the potential reward. Therefore I’m still tempted to buy this cannabis stock for my portfolio.

A leading global cannabis stock 

Cronos Group (NASDAQ:CRON) is an innovative global cannabinoid company focused on cannabis research, technology and product development. And just like GrowGeneration, the firm has achieved some commendable growth, with revenues more than doubling in the last three years.

The Cronos group plans to develop a diversified global sales and distribution network by establishing an efficient global supply chain. To achieve this, the company recently announced a strategic investment in PharmaCann – an expert in growing, processing, and dispensing cannabis products. Through the broad geographic footprint of PharmaCann, in the US, which includes six production facilities and 24 dispensaries, the cannabinoid company plans to extend its distribution channel.

As promising as this sounds, the firm also has a lofty valuation to maintain. So far this year, the stock price has reached a high of $15.83 and a low of $4.92. This level of volatility adds considerable risk to an investment in this business. But once again, given the growth potential, this risk may be worth it, in my mind.

Final words on cannabis stock investments

The cannabis sector is still relatively young. And as an investor, I like to get into big opportunities as early as possible to reap the biggest rewards. The industry has a lot of hurdles to overcome, especially on the regulatory front. And this may impede the overall growth rate.

But in my opinion, these two cannabis stocks look like they can overcome these challenges. And while they are a bit expensive today, they could yield some pretty significant returns over the long term.