The cannabis sector is one which many may have rightly described as a bubble seven or eight years ago. That’s because it was.

Valuations in this sector got to obscene levels, with plenty of top cannabis producers receiving multi-billion dollar valuations on little or no revenue. In fact, given the way accounting standards for agricultural products are set up (and cannabis falls into this category), companies were able to claim the full value of their plants before they were sold, leading to revenue growth numbers that did not move in line with earnings, which have remained negative for many players in this space.

Now, that’s not the whole story with the entire sector. Investors will find a range of high-quality cannabis stocks which are now trading at rock-bottom multiples, thanks to the sector-wide decline we all witnessed in recent years. Here are three of the best opportunities in 2026, for those looking to place long-term bets on the hopes that legalization efforts pick up in the U.S. and abroad.

Curealeaf (CURLF)

My top pick in the cannabis sector overall, Curaleaf (OTCMKTS:CURLF) is one of the largest cannabis companies in the world. Operating across the U.S. with a national footprint and scale, Curaleaf is the top multi-state operator (MSO) in the market in my view.

With an extensive European expansion platform via Curaleaf International, Curaleaf is well-positioned to take the next step as the market leader in the U.S. cannabis market, should legalization regulations take hold. The company’s higher-margin product portfolio has spurred expectations that profitability could come in short order. And with expanding gross margins and an improving EBITDA margin (even in what I’d consider a very choppy environment), I think Curaleaf’s management team has some of the best discipline in this space.

Knowing where to invest (Europe) and when to divest certain under-performing product lines is key to success in this sector. With most of the companies in this space unprofitable, and Curaleaf not being an exception to that rule, I think the company in this sector that can show consistent profitability will be the one that comes out ahead. Right now, I think Curaleaf has the best potential to do just that, and this is key to the investing thesis around this name right now.

Trulieve Cannabis (TCNNF)

Another multi-state operator I think could provide investors with excellent value over the long-term is Trulieve Cannabis (OTCMKTS:TCNNF).

This dominant Florida dispensary company has more than 200 dispensary locations in the U.S., with a highly vertically-integrated business model I think should bode well over the long-term.

Given Florida’s nature as a limited license market, Trulieve’s strong operating cash flow positions the company well to not only sustain its current operations, but grow. Revenue has begun to grow again off an already large base, but we’ve also seen gross margins and EBITDA margins expand to become some of the best in this sector.

As more of the company’s core markets move toward full adult use of marijuana, I think Trulieve is well positioned for continued upside. Those looking for a quality operator trading with a depressed multiple in a potentially high-growth sector may want to take a look at this name right now.

AdvisorShares Pure U.S. Cannabis ETF (MSOS)

For investors looking for greater diversification in the world of cannabis stocks, the AdvisorShares Pure U.S. Cannabis ETF (NYSEARCA:MSOS) is a great pick.

Trulieve and Curaleaf are among this fund’s top holdings, with a focus on multi-state operators with solid margins and the potential to grow in a legalization environment. If we do indeed see additional regulation come down the pike (with Trump already reclassifying marijuana as a less-dangerous drug), this is an ETF that really could have explosive upside this year.

Unfortunately, the reality of investing in this sector via the MSOS ETF or picking individual stocks is that there’s a highly speculative component to doing so. Investors need to have a long-term investing time horizon in looking to capitalize on what might be, rather than what is likely to happen.

That said, for investors looking to do so, I’ve always thought that buying a well-diversified basket of quality companies in a particular speculative sector is the way to go. In that regard, MSOS would probably be my preferred way to gain exposure to the cannabis trade in 2026.