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 investing in equipment to speed up revenue growth, which remains strong despite the pandemic-spurred economic downturn.

On November 3, 2020, voters in New Jersey, Arizona, and Montana approved ballot measures to legalize recreational marijuana, and Mississippi has voted to legalize medical marijuana use. South Dakota approved ballot measures to approve both.

Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have dramatically underperformed the broader market. MJ has provided a total return of -17.4% over the past 12 months, well below the Russell 1000's total return of 19.0%, as of November 23, 2020. All statistics in the tables below are as of November 24.

Here are the top 3 marijuana stocks with the best value, the fastest growth, and the 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 ($) Market Cap ($M) 12-Month Trailing P/S Ratio
Organigram Holdings Inc. (OGI.TO) CA$1.44 CA$334.2 2.9
Harvest Health & Recreation Inc. (HARV.CX) CA$2.28 CA$836.7 3.1
Amyris Inc. (AMRS) 2.42 578.9 3.2

Source: YCharts

  • Organigram Holdings Inc.: Organigram Holdings is a Canada-based holding company. Through its subsidiary, the company is a licensed producer of medical marijuana. On November 17, Organigram announced the release of RE:MIX dissolvable cannabis powder through its Edison brand. The product allows users to customize virtually any beverage into a cannabis-infused drink almost immediately. The company said it sees the Canadian recreational cannabis beverage market as a major growth opportunity.
  • Harvest Health & Recreation Inc.: Harvest Health & Recreation is a Canada-based cannabis company that specializes in cultivation, dispensaries, and production facilities for medicinal and recreational marijuana. For Q3, Harvest reported an 85.5% year-over-year (YOY) increase in total revenue, helping to sharply narrow its net loss during the quarter to $2.1 million from a net loss of $39.1 million in the same quarter a year earlier. During the quarter, the company opened new dispensary locations in Arizona and Pennsylvania.
  • Amyris Inc.: Amyris is a producer and distributor of chemical products, including flavors and fragrances, pharmaceuticals, cosmetics, and similar chemical offerings. The company serves customers around the world.

Fastest Growing Marijuana Stocks

These are the marijuana stocks with the highest 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 ($) Market Cap ($M) Revenue Growth (%)
Jushi Holdings Inc. (JUSH.CX) CA$4.33 CA$467.6 6,730
Cresco Labs Inc. (CL.CX) CA$11.78 CA$2,559 326.9
4Front Ventures Corp. (FFNT.CX) CA$0.94 CA$476.0 204.5

Source: YCharts

  • Jushi Holdings Inc.: Jushi Holdings is a Canada-based holding company focused on building a portfolio of branded-cannabis and hemp-based assets engaged in retail, distribution, cultivation, and processing operations. On November 24, the company reported a net loss of $30 million as total revenue rose 67% in Q3 2020. During the quarter, Jushi continued its rapid expansion by: completing its equity acquisition of a Pennsylvania grower-processor permit holder, opening its 10th BEYOND/HELLO retail location, and announcing plans to nearly double the square footage of its Pennsylvania grower-processor facility in Scranton to more than 160,000 square feet.
  • Cresco Labs Inc.: Cresco Labs is a Canada-based consumer-packaged cannabis products company involved in growing, manufacturing, and distribution.
  • 4Front Ventures Corp.: 4Front Ventures owns and operates cannabis cultivation and production facilities. The company also processes, packages, distributes, and sells cannabis to customers throughout the U.S. On November 24, the company announced that it expects its new 185,000 square foot production facility in Commerce, California to be completed by April 2021, with the first products available for retail in California later in Q2 2021. The company said the California cannabis market is valued at $3 billion.

Marijuana Stocks with the Most Momentum

These are the marijuana stocks that had the highest total return over the last 12 months.

Marijuana Stocks with the Most Momentum

 

Price ($) Market Cap ($M) 12-Month Trailing Total Return (%)
GrowGeneration Corp. (GRWG) 31.50 1,543 640.7
TerrAscend Corp. (TER.CX) CA$9.80 CA$727.9 180.0
Planet 13 Holdings Inc. (PLTH) CA$5.13 CA$608.3 123.0
Russell 1000 N/A N/A 19.0
ETFMG Alternative Harvest ETF (MJ) N/A N/A -17.4

Source: YCharts

  • GrowGeneration Corp.: GrowGeneration is a distributor of agricultural products. The company operates retail hydroponic and organic specialty gardening retail outlets. It offers plant nutrition, farming soils, crops, advanced lighting technology, hydroponic and aquaponic equipment, and more. On November 17, GrowGeneration completed its acquisition of The GrowBiz, the nation's third-largest chain of hydroponic garden centers. With this acquisition, GrowGeneration operates 36 garden centers in total. Terms of the acquisition were not disclosed in the press release.
  • TerrAscend Corp.: TerrAscend is a Canada-based integrated cannabis company. The company provides medical cannabis for patients with chronic pain and other illnesses. TerrAscend also is involved in drug research and development as well as delivery systems. On November 24, the company announced that it had received a permit from the New Jersey Department of Health to dispense medical cannabis from its first dispensary in New Jersey, which is set to open on November 30.
  • Planet 13 Holdings Inc.: Planet 13 is a Canada-based holding company that, through its subsidiaries, develops cannabis-based products. The company's products include cannabis, cannabis extracts, infused products, vapes, edibles, and more.