The marijuana industry includes companies directly related to the research, development, and distribution of cannabis products, as well as companies which indirectly support these operations. As a growing number of U.S. states and countries around the world have legalized marijuana in one or more forms, traditional stock market indices like the Nasdaq have begun to include more companies from the marijuana industry. Now, companies like Arena Pharmaceuticals, Inc. (ARNA) and OrganiGram Holdings, Inc. (OGI) are being traded on U.S. exchanges rather than through the over-the-counter market. Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have significantly underperformed the S&P 500 over the past 12 months. MJ registered a negative total return of 56.5%, while the S&P 500 posted a positive return of 15.2%. All figures are as of February 26, 2020.

Below, we'll examine the top three Nasdaq-listed stocks in the marijuana industry for best value, fastest earnings growth, and most momentum.

Best Value Marijuana Stocks

These are the marijuana stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For young companies that have not reached profitability, this can provide an idea of how much business you’re getting for each dollar invested.

Best Value Marijuana Stocks
  Price ($) Market Cap ($B) 12-Month Trailing P/S Ratio
Amyris Inc. (AMRS) 3.18 0.5 2.2
Tilray Inc. (TLRY) 16.57 1.7 11.7
GW Pharmaceuticals PLC (GWPH) 117.05 3.6 17.8

Source: YCharts

  • Amyris Inc.: Amyris produces a variety of chemical products for use in cosmetics, pharmaceuticals, and as flavors and fragrances. Last quarter, Amyris announced that it had delivered shipment of its first fermentation-derived cannabinoid to partner company LAVVAN, an important milestone in the company's work in the marijuana space.
  • Tilray Inc.: Based in British Columbia, Canada, Tilray is a pharmaceutical company which develops a range of cannabis-based medicines, drugs, and oils for worldwide distribution. Early in 2020, Tilray announced two major changes in its executive leadership, appointing former Revlon executive Jon Levin as Chief Operating Officer and former Molson Coors executive Michael Kruteck as Chief Financial Officer.
  • GW Pharmaceuticals PLC: GW Pharmaceuticals is biopharmaceutical company based in the U.K. This company researches and develops cannabis-based medical treatments for cancer pain, Multiple Sclerosis, and neuropathic pain.

Fastest Growing Marijuana Stocks

These are the Nasdaq-listed marijuana stocks with the highest year-over-year (YOY) sales growth for the most recent quarter. Rising sales show that a company’s business is growing. This is often used to measure growth of young companies that have not yet reached profitability.

Fastest Growing Marijuana Stocks
  Price ($) Market Cap ($B) Revenue Growth (%)
GW Pharmaceuticals PLC (GWPH) 117.05 3.6 2,550.0
Tilray Inc. (TLRY) 16.57 1.7 408.6
Cronos Group Inc. (CRON) 6.03 2.1 234.3

Source: YCharts

  • GW Pharmaceuticals PLC: See company description above.
  • Tilray Inc.: See company description above.
  • Cronos Group Inc.: Cronos Group is a Canadian cannabis company which produces and distributes medical marijuana products and cannabis oil. The company recently announced a delay in the release of its Q4 and full-year earnings release.

These are the marijuana stocks on the Nasdaq that declined the least in their sector over the last 12 months amid the industry's steep overall decline.

Marijuana Stocks with the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Cara Therapeutics Inc. (CARA) 15.99 0.7 -6.7
GW Pharmaceuticals PLC (GWPH) 117.05 3.6 -22.4
Amyris Inc. (AMRS) 3.18 0.5 -35.1
S&P 500 (SPY) -- -- 15.2
ETFMG Alternative Harvest ETF (MJ) -- -- -56.5

Source: YCharts

  • Cara Therapeutics Inc.: Cara Therapeutics is a clinical-stage biotechnology company focused on developing and commercializing new chemical entities for the indications of pain and pruritus (itching), among other conditions. In December, the company revealed positive topline data from a phase 2 trial of its Oral KORSUVA drug treatment for pruritus in patients with chronic kidney disease.
  • GW Pharmaceuticals PLC: See company description above.
  • Amyris Inc.: See company description above.