The marijuana industry consists of companies directly related to the research, development, and distribution of cannabis products, as well as companies that indirectly support these operations. Traditional stock market indices such as the Nasdaq continue to include more companies from the marijuana industry, as a growing number of regions around the world legalize marijuana. A total of 37 U.S. states now permit the use of marijuana in some form.
Nasdaq-listed marijuana companies include Tilray Brands Inc., Organigram Holdings Inc., and GrowGeneration Corp. Many of these companies managed to maintain fast revenue growth in spite of the massive disruptions caused by the COVID-19 pandemic.
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), an exchange-traded fund, have significantly underperformed the broader market. MJ has provided a total return of -65.0% over the past 12 months, well below the benchmark Russell 1000 Index’s total return of -7.6%. These performance figures and all statistics in the tables below are as of Aug. 9, 2022.
Here are the top three marijuana stocks on the Nasdaq with the best value, fastest growth, and best performance.
These are the marijuana stocks trading on the Nasdaq exchange with the lowest 12-month trailing price-to-sales (P/S) ratio. For companies in the early stages of development or industries suffering from major shocks, this can be substituted as a rough measure of a business’s value. A business with higher sales eventually could produce more profit when it achieves (or returns to) profitability. The P/S ratio shows how much you’re paying for the stock for each dollar of sales generated.
|Best Value Marijuana Stocks on the Nasdaq|
|Price ($)||Market Capitalization (Market Cap) ($B)||12-Month Trailing P/S Ratio|
|GrowGeneration Corp. (GRWG)||5.00||0.3||0.8|
|Aurora Cannabis Inc. (ACB)||1.50||0.4||1.7|
|Canopy Growth Corp. (CGC)||2.87||1.4||2.9|
- GrowGeneration Corp.: GrowGeneration operates hydroponic garden centers across North America. The company markets and distributes a variety of hydroponic gardening products, including growing media, nutrients, lighting, ventilation equipment, and more. GrowGeneration reported earnings results for Q2 2022 on Aug. 4. The company posted a net loss of $136.4 million compared with net income for the prior-year quarter. Revenue declined year-over-year (YOY). The net income results include a $127.8 million impairment expense for goodwill and other intangibles.
- Aurora Cannabis Inc.: Aurora Cannabis is a Canada-based cannabis company serving both the medical and recreational-use markets. Some of its brands include Aurora Drift, Daily Special, MedReleaf, and CanniMed.
- Canopy Growth Corp.: Canopy Growth is a Canada-based cannabis, hemp, and cannabis device company. It provides both recreational and medical cannabis products under a variety of brands. The company also sells vaporizers, beauty and wellness products, and beverages. On Aug. 2, Canopy Growth announced that Christelle Gedeon would become Canopy's new chief legal officer. Gedeon was previously chief legal officer of The Metals Company and Aphria Inc.
These are the marijuana stocks on the Nasdaq with the highest year-over-year (YOY) sales growth for the most recent quarter. Rising sales can help investors identify companies that are able to grow revenue organically or through other means, as well as find growing companies that have not yet reached profitability. In addition, earnings per share can be significantly influenced by accounting factors that may not reflect the overall strength of the business. However, sales growth can also be potentially misleading about the strength of a business, because growing sales on money-losing businesses can be harmful if the company has no plan to reach profitability.
|Fastest Growing Marijuana Stocks on the Nasdaq|
|Price ($)||Market Cap ($B)||Revenue Growth (%)|
|Organigram Holdings Inc. (OGI)||1.09||0.3||82.8|
|SNDL Inc. (SNDL)||2.69||0.6||77.9|
|Cronos Group Inc. (CRON)||3.09||1.2||47.6|
- Organigram Holdings Inc.: Organigram Holdings is a Canada-based producer of medical and recreational cannabis. Its subsidiaries include Organigram Inc., Laurentian Organic Inc., and The Edibles and Infusions Corp. Organigram reported on July 14 earnings for Q3 FY 2022, which ended May 31. Its net loss narrowed YOY as revenue climbed to record quarterly levels. The company said that revenue growth was driven by new product listings, increased retail sales momentum, and growing international shipments.
- SNDL Inc.: SNDL is a Canada-based cannabis producer. The company operates cultivation and processing facilities, retail stores, and sells alcoholic beverages. At its annual and special shareholder meeting in late July, the company officially changed its name from Sundial Growers Inc. to SNDL Inc. It also effected a share consolidation under which 10 pre-consolidation common shares were consolidated into one post-consolidation common share, effective July 25.
- Cronos Group Inc.: Cronos Group is a Canada-based cannabis company focused on advancing cannabis research, technology, and product development. Its international brand portfolio includes Spinach, Happy Dance, and PEACE+. The company reported Q2 2022 earnings on Aug. 9. Net losses narrowed YOY on solid revenue growth. Revenue more than tripled in the company's Israel business and declined YOY in the U.S.
These are the marijuana stocks that had the smallest declines in total return over the past 12 months out of the companies we looked at.
|Marijuana Stocks on the Nasdaq with the Best Performance|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Cronos Group Inc. (CRON)||3.09||1.2||-57.2|
|Organigram Holdings Inc. (OGI)||1.09||0.3||-60.2|
|SNDL Inc. (SNDL)||2.69||0.6||-67.7|
|ETFMG Alternative Harvest ETF (MJ)||N/A||N/A||-65.0|
- Cronos Group Inc.: See above for company description.
- Organigram Holdings Inc.: See above for company description.
- SNDL Inc.: See above for company description.
The comments, opinions, and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or adopt any investment strategy. Though we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.
National Conference of State Legislatures. “State Medical Cannabis Laws.”
YCharts. “Financial Data.”
GrowGeneration Corp. "GrowGeneration Reports Second Quarter 2022 Financial Results."
Canopy Growth Corp. "Canopy Growth Announces Industry Veteran Christelle Gedeon As New Chief Legal Officer."
OrganiGram Holdings Inc. "Organigram Reports Third Quarter Fiscal 2022 Results."
Cronos Group Inc. "Cronos Group Reports 2022 Second Quarter Results."
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