The marijuana industry has endured a period of quiet. The fervor surrounding cannabis stocks has dissipated, leading many investors to shift their focus elsewhere. However, despite this lull, there are compelling opportunities within the cannabis sector that shouldn’t be overlooked.

Now is the opportune moment, I believe, to start establishing positions in select high-quality cannabis stocks as we await the inevitable catalyst of federal legalization in the U.S., which is poised to reignite their growth. While numerous companies in this space grapple with financial challenges, a handful have either achieved or are on the brink of profitability even amid the current regulatory constraints. Here are three such cannabis stocks merit attention at this juncture.

High Tide (HITI)

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For several months now, High Tide (NASDAQ:HITI) has been on my radar as a top cannabis-focused investment. While near-term market fluctuations could persist, I believe the bearish sentiment has hit its low, and High Tide is poised for a turnaround, nearing profitability.

High Tide has maintained exceptional performance in the Canadian cannabis market. Even in the absence of full recreational legalization in the U.S., the company continues to thrive in the northern market.

According to Wall Street analysts, High Tide is projected to achieve profitability by fiscal 2025, with robust earnings growth anticipated in the ensuing years. The consensus estimate for earnings per share suggests a surge from 9 cents in 2025 to 64 cents in 2030. This implies a forward price-earnings ratio of merely 3-times based on the 2030 earnings for a company that is attaining double-digit growth. Even if High Tide merely achieves half of those profit projections, its shares could easily double. Moreover, federal legalization is likely to occur before 2030, presenting an additional catalyst for multiple expansion.

Besides its imminent profitability, High Tide’s revenue growth remains robust. Revenue is anticipated to more than double from 2024 to 2028. Yet, the shares trade at a mere 0.37-times the 2024 sales estimates, making them remarkably inexpensive relative to the company’s growth prospects. It’s clear that this stock possesses all the elements necessary for a remarkable turnaround rally in the forthcoming years.

Green Thumb Industries (GTBIF)

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Unlike numerous cannabis enterprises that are grappling with financial losses, Green Thumb Industries (OTCMKTS:GTBIF) consistently delivers profits. While the company may lack the flashy growth of unprofitable cannabis stocks, its more moderate expansion positions it for robust growth when market conditions improve.

Forecasts indicate that Green Thumb’s earnings per share could surge nearly 15 times over the next nine years. Concurrently, sales are projected to escalate from about $1 billion currently to $3.4 billion by 2030. This steady growth trajectory is far more sustainable than the hype-driven cannabis companies. With U.S. legalization, Green Thumb can pivot from its focus on medicinal cannabis to the more lucrative recreational segment. Its established footprint in the U.S. gives the company a substantial edge.

For investors seeking exposure to the cannabis market without assuming excessive risk, Green Thumb Industries appears to check all the right boxes. The company generates cash flow, not losses, a rare trait in the cannabis sector.

Innovative Industrial Properties (IIPR) – A Solid Bet within a Shaky Sector

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Innovative Industrial Properties (NYSE:IIPR) is an intriguing play in the cannabis industry. After the initial euphoria surrounding cannabis faded, the stock dropped more than 70% from its peak. Nevertheless, rumors of this real estate investment trust’s (REIT) downfall are greatly overstated.

Despite the challenges in the sector, IIPR continues to collect over 97% of rents owed every quarter. Struggling cannabis firms certainly don’t want to risk losing access to their cultivation facilities. Thus, the company’s business model remains resilient. Moreover, with real estate exceeding expectations lately, IIPR stands poised for its own rally.

Trading at a mere 12-times funds from operations (FFO) with an almost 8% dividend yield, IIPR offers value, income, and exposure to the cannabis sector in a single, stable package. As unfounded fears impacting property owners and cannabis stocks dissipate, this unique REIT has the potential to deliver remarkable returns.

On the date of publication, Omor Ibne Ehsan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.