The marijuana industry is made up of companies that either support or are engaged in the research, development, distribution, and sale of medical and recreational marijuana. Cannabis has begun to gain wider acceptance and has been legalized in a growing number of nations, states, and other jurisdictions for recreational, medicinal, and other uses. Some of the biggest companies in the marijuana industry include Canopy Growth Corp. (CGC), Cronos Group Inc. (CRON), and Tilray Inc. (TLRY). Many big marijuana companies have continued to post sizable net losses as they focus on investments needed to speed up revenue growth. 37 U.S. states now permit the use of marijuana in some form.
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have vastly underperformed the broader market. MJ has provided a total return of -63.7% over the past 12 months, well below the Russell 1000 Index's total return of -7.1%. These market performance numbers and all statistics in the tables below are as of Aug. 8, 2022.
Here are the top five marijuana stocks with the best value, the fastest growth, and the best performance.
These are the marijuana stocks 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 could eventually 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|
|Price ($)||Market Cap ($B)||12-Month Trailing P/S Ratio|
|Ayr Wellness Inc. (AYR.A.CX)||CA$6.36||CA$0.4||0.8|
|GrowGeneration Corp. (GRWG)||5.50||0.3||0.9|
|Cresco Labs Inc. (CL.CX)||CA$4.52||CA$1.3||1.2|
|Jushi Holdings Inc. (JUSH.CX)||CA$2.63||CA$0.5||1.8|
|Aurora Cannabis Inc. (ACB)||1.65||0.5||1.9|
- Ayr Wellness Inc.: Ayr Wellness is a cannabis company involved in the cultivation, manufacturing, and dispensing of cannabis and cannabis-derived products. The company's product portfolio includes flowers, tinctures, edibles, and vape products under brands including Kynd, Origyn, Stix Preroll, Levia, and Road Tripper. Ayr Wellness also trades OTC in the U.S. under the ticker AYRWF. In late July, Ayr announced the opening of dispensaries in Pennsylvania and Florida. The company now has nine medical dispensaries in Pennsylvania and 49 dispensaries in Florida.
- 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. It operates over 60 retail and distribution centers nationwide. GrowGeneration reported on Aug. 4 earnings results for Q2 2022. It posted a net loss of $136.4 million compared with net income for the prior-year quarter. Revenue fell year-over-year (YOY). The net income results include a $127.8 million impairment expense for goodwill and other intangibles.
- Cresco Labs Inc.: Cresco Labs is a consumer-packaged cannabis products company involved in growing, manufacturing, and distribution. The company operates in 10 states, including more than 70 total production facilities and dispensaries. Its brands include Cresco, Remedi, High Supply, Wonder Wellness Co., Mindy's, Good News, Sunnyside, and FloraCal Farms. Cresco Labs' stock also trades OTC in the U.S. under the ticker CRLBF. On July 15, Cresco reported that Columbia Care Inc., a cultivator and maker of cannabis products, had obtained the final order from the Supreme Court of British Columbia approving its business combination with Cresco Labs. Per the agreement, Cresco will acquire all outstanding shares of Columbia Care. The combination is expected to close in Q4 2022. Terms of the deal were not disclosed,.
- Jushi Holdings Inc.: Jushi Holdings is a holding company focused on branded cannabis and hemp-based assets. The company is engaged in retail, distribution, cultivation, and processing operations. Its brands include: The Bank, focused on plant genetics and cultivation; The Lab, specializing in vape products and concentrates; Nira+, a producer of medicinal THC products; Sèche, which offers various branded ground and flower cannabis products; and Tasteology, a provider of THC-infused products. Jushi also trades OTC in the U.S. under the ticker JUSHF. On Aug. 8, Jushi announced it had reached a confidential settlement agreement with Curaleaf Holdings Inc. and Edward Kremer, former chief financial officer (CFO) of Jushi. The agreement resolves Jushi's claim against Kremer for breach of employment agreement and against Curaleaf for tortious interference. As part of the agreement, Kremer received a limited waiver of his non-compete deal to enable him to accept employment at Curaleaf.
- Aurora Cannabis Inc.: Aurora Cannabis is a Canada-based company specializing in production, distribution, and sales of medical cannabis products. Its brands include Aurora, Aurora Drift, Daily Special, MedReleaf, Whistler, and more. The company's growth strategy targets medical cannabis markets across the globe as well as the U.S. hemp-derived CBD market and the Canadian recreational market.
These are the marijuana stocks 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 and find growing companies that have not yet reached profitability. In addition, accounting factors that may not reflect the overall strength of the business can significantly influence earnings per share. However, sales growth can also be potentially misleading about the strength of a business because growing sales for money-losing businesses can be harmful if the companies have no plan to reach profitability.
|Fastest-Growing Marijuana Stocks|
|Price ($)||Market Cap ($B)||Revenue Growth (%)|
|Cronos Group Inc. (CRON)||3.58||1.3||98.5|
|Ayr Wellness Inc. (AYR.A.CX)||CA$6.36||CA$0.4||90.6|
|OrganiGram Holdings Inc. (OGI)||1.19||0.4||82.8|
|SNDL Inc. (SNDL)||2.81||0.7||77.9|
|Verano Holdings Corp. (VRNO.CX)||CA$7.00||CA$2.1||67.4|
- 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+.
- Ayr Wellness Inc.: See above for company description.
- 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., and its brands include Edison Cannabis Co., SHRED, and monjour, among others. On July 14, Organigram reported earnings for Q3 FY 2022 ended May 31. Its net loss narrowed YOY as revenue surged to record quarterly levels. The company attributed revenue growth to 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. Its cannabis brands include Sundial, Top Leaf, Palmetto, and Grasslands. 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.
- Verano Holdings Corp.: Verano Holdings is a vertically integrated, multi-state cannabis operator. The company produces a wide range of medical and adult-use cannabis products. It owns and operates 13 cultivation and manufacturing facilities and owns over 100 dispensaries in a number of states throughout the U.S. The company's stock also trades OTC in the U.S. under the ticker VRNOF. On Aug. 5, the company announced the opening of its 54th dispensary location in Florida.
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 With the Best Performance|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|4Front Ventures Corp. (FFNT.CX)||CA$0.71||CA$0.4||-50.0|
|Cronos Group Inc. (CRON)||3.58||1.3||-51.0|
|OrganiGram Holdings Inc. (OGI)||1.19||0.4||-55.8|
|Innovative Industrial Properties Inc. (IIPR)||93.65||2.6||-57.5|
|Jushi Holdings Inc. (JUSH.CX)||CA$2.63||CA$0.5||-59.6|
|ETFMG Alternative Harvest ETF (MJ)||N/A||N/A||-63.7|
- 4Front Ventures Corp.: 4Front Ventures is a cannabis operator and retailer operating across multiple states. It owns, operates, or manages cultivation and manufacturing properties in five states and employs over 600. Its stores attracted more than one million unique customers in 2021. 4Front also trades OTC under the symbol FFNTF.
- Cronos Group Inc.: See above for company description.
- OrganiGram Holdings Inc.: See above for company description.
- Innovative Industrial Properties Inc.: Innovative Industrial Properties is a real estate investment trust (REIT) that engages in the acquisition, disposition, development, and management of industrial facilities leased to tenants in the regulated medical cannabis industry. The company's portfolio consists of specialized industrial and greenhouse buildings leased to state-licensed, medical-use cannabis cultivators across the U.S. It reported Q2 2022 earnings results on Aug. 3. Net income climbed by 37.1% YOY while total revenues grew by 44.3%. The acquisition and leasing of new properties and additional improvement allowances both contributed to growth During the quarter, IIP established new tenant relationships with a variety of cannabis companies including Maryland Cultivation and Processing LLC, Texas Original Holdings LLC, and TILT Holdings Inc.
- Jushi Holdings 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 to 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.
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