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 remained strong despite the economic disruption caused by the pandemic.
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have outperformed the broader market. MJ has provided a total return of 61.8% over the past 12 months, above the Russell 1000 index's total return of 43.5%. These market performance numbers and all statistics in the tables below are as of June 25, 2021.
Here are the top 5 marijuana stocks with the best value, the fastest growth, and the most momentum.
On March 31, 2021, New York passed a law legalizing recreational cannabis, expanding medical use, and decriminalizing possession of small amounts of marijuana, among other measures. Not all of these provisions will go into effect immediately and there is no timeline yet on when all these measures will be fully implemented.
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|
|High Tide Inc. ( HITI.V)||CA$10.30||CA$0.5||2.2|
|Acreage Holdings Inc. ( ACRG.A.U.CX)||3.84||0.4||3.1|
|Village Farms International Inc. ( VFF.TO)||CA$13.28||CA$1.1||3.5|
|Cresco Labs Inc. ( CL.CX)||CA$13.88||CA$3.4||3.9|
|Hydrofarm Holdings Group Inc. ( HYFM)||56.96||2.3||4.4|
- High Tide Inc.: High Tide is a Canada-based cannabis retailer. The company operates a cannabis retail chain, global manufacturing and distribution of smoking accessories, and an accessories e-commerce platform. Its brands include Canna Cabana, KushBar, NewLeaf, META Cannabis, Grasscity, and Smoke Cartel. On June 26, the company announced it would acquire U.S.-based online marijuana accessories retailer Daily High Club. The cash-and-stock transaction is valued at $10 million. The acquisition is expected to boost High Tide's U.S. e-commerce presence. It trades in the U.S. under the ticker HITI.
- Acreage Holdings Inc.: Acreage Holdings owns a portfolio of cannabis brands. Through its subsidiaries, the company engages in the cultivation, processing, manufacturing, and dispensing of cannabis and related products. Acreage has a footprint in 13 U.S. states, including 30 operational dispensaries and 18 cultivation and processing licenses. It trades in the U.S. under the ticker ACRHF.
- Village Farms International Inc.: Village Farms International is a Canada-based agricultural producer. In addition to growing vegetables like tomatoes, bell peppers, and cucumbers, the company also produces cannabis. The company distributes fresh produce from over nine million square feet of Controlled Environment Agriculture (CEA) greenhouses in Canada and the U.S., as well as from partner greenhouses in Canada and Mexico. It trades in the U.S. under the ticker VFF.
- Cresco Labs Inc.: Cresco Labs is a consumer-packaged cannabis products company involved in growing, manufacturing, and distribution. The company operates in ten states, owns production facilities and dispensaries, and holds 44 retail licenses. Its brands include Cresco, Reserve, Remedi, High Supply, and Wonder Wellness Co. It trades in the U.S. under the ticker CRLBF. On June 9, Cresco Labs announced the portfolio expansion of its Good News brand. Cresco is launching its Counting Sheep, Day Off, and Pride products in edible and vape forms in California, Illinois, and Michigan.
- Hydrofarm Holdings Group Inc.: Hydrofarm Holdings Group is a holding company. Through subsidiaries, it makes and distributes hydroponic products to customers throughout the U.S. and in Canada. The company has 6 distribution locations in the U.S., offering a product line of over 5,000 items. Hydrofarm announced on June 17 that it had agreed to acquire Aurora, which includes Aurora Innovations, Inc., Aurora International, Inc, and Gotham Properties LLC. Aurora is a maker and supplier of organic hydroponic products and will augment Hydrofarm's hydroponics products offerings. The transaction is valued at $161 million and is expected to close in July.
These are the top marijuana stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.
Only one of the companies listed below reported positive EPS growth in the most recent quarter.
|Fastest Growing Marijuana Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)||Revenue Growth (%)|
|Innovative Industrial Properties Inc. ( IIPR)||195.24||4.7||45.8||103.0|
|Jushi Holdings Inc. ( JUSH.CX)||CA$6.99||CA$1.2||N/A (see company description)||355.4|
|High Tide Inc. ( HITI.V)||CA$10.30||CA$0.5||N/A (see company description)||179.4|
|GrowGeneration Corp. ( GRWG)||43.41||2.6||N/A (see company description)||172.9|
|Cresco Labs Inc. ( CL.CX)||CA$13.88||CA$3.4||N/A (see company description)||153.6|
- Innovative Industrial Properties Inc.: Innovative Industrial Properties acquires, develops, builds, and manages industrial facilities used by companies in the medical cannabis industry. The company is structured as a real estate investment trust (REIT) which must distribute at least 90% of its taxable income to stockholders through dividends. On June 15 the company announced a Q2 2021 dividend of $1.40 per share of common stock, an increase of approximately 6% over its Q1 2021 dividend. The company also announced a dividend on its preferred shares as well. Both dividends are payable on July 15 to shareholders as of June 30, 2021.
- Jushi Holdings Inc.: Jushi Holdings is a holding company focused on building a portfolio of 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 maker of hemp-based CBD products that are physician formulated; Nira+, a producer of medicinal THC products; Seche, which offers various branded ground and flower cannabis products; and Tasteology, a provider of THC-infused products. Jushi also trades in the U.S. under the ticker JUSHF. In June, chairman, CEO, and founder Jim Cacioppo said he anticipates significant expansion in the next year, including opening 5 new stores in Pennsylvania by the end of 2021 and dramatically expanding its growing and processing operations in Virginia. Jushi does not have an EPS growth listing above because it had negative EPS for the quarter.
- High Tide Inc.: See above for company description. High Tide does not have an EPS growth listing above because it had negative EPS for the quarter.
- GrowGeneration Corp.: GrowGeneration is a distributor of agricultural products. The company operates retail hydroponic and organic specialty gardening retail outlets. It offers thousands of products, including plant nutrition, farming soils, advanced lighting technology, and hydroponic and aquaponic equipment. As one of the largest hydroponics suppliers in the country it owns and operates 55 retail and distribution centers. GrowGeneration launched an e-commerce platform in June. The platform gives consumers the option to buy their product online and then pick it up in store at select locations. GrowGeneration does not have an EPS growth listing above because it went from negative to positive EPS, making a growth calculation impossible.
- Cresco Labs Inc.: See above for company description. Cresco does not have an EPS growth listing above because it had negative EPS for the quarter.
Momentum investing is a factor-based investing strategy in which you invest in a stock whose price has risen faster than the market as a whole. Momentum investors believe that stocks which have outperformed the market will often continue to do so, because the factors that caused them to outperform will not suddenly disappear. In addition, other investors, seeking to benefit from the stock's outperformance, will often purchase the stock, further bidding its price higher and pushing the stock higher still. These are the stocks that had the highest total return over the last 12 months.
|Marijuana Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|GrowGeneration Corp. ( GRWG)||43.41||2.6||514.9|
|TerrAscend Corp. ( TER.CX)||CA$12.87||CA$2.3||343.8|
|Tilray Inc. ( TLRY)||18.20||4.8||330.3|
|Jushi Holdings Inc. ( JUSH.CX)||CA$6.99||CA$1.2||288.3|
|Planet 13 Holdings Inc. ( PLTH.CX)||CA$8.52||CA$1.0||278.7|
|ETFMG Alternative Harvest ETF ( MJ)||N/A||N/A||61.8|
- GrowGeneration Corp.: See above for company description.
- TerrAscend Corp.: TerrAscend is a Canada-based integrated cannabis company offering a range of products, brands, and services for the global medical- and adult-use cannabis markets. Its portfolio of businesses include: The Apothecarium, a cannabis dispensary; Arise Bioscience Inc., a manufacturer and distributor of hemp-derived products; Ilera Healthcare, a medical marijuana cultivator, processor, and dispenser; Valhalla Confections, a manufacturer of cannabis-infused edibles; and more. It also trades in the U.S. under the ticker TRSSF.
- Tilray Inc.: Tilray is a Canada-based pharmaceutical company which develops cannabis-based medicines, drugs, drops, and related products. Tilray provides more than 20 brands in over 20 countries in North America, Europe, and Latin America. On May 3, Tilray announced the closing of the previously announced merger with Aphria Inc., creating the new Tilray company. The company also announced on June 9 the launch of Symbios, a new medical cannabis brand, which offers a broad selection of products to medical patients at a lower price point. These include flower, oils, and pre-rolls.
- Jushi Holdings Inc.: See above for company description.
- Planet 13 Holdings Inc.: Planet 13 Holdings is a vertically-integrated cannabis company, engaging in the cultivation, processing, and distribution of cannabis and related products. The company holds six licenses in the Nevada market and operates a major cannabis store just steps from the Las Vegas Strip. The store offers vapes, edibles, pre-rolls, and concentrates. Planet 13's brands include Planet 13 Las Vegas, Medizin, Trendi, Dreamland Chocolates, and HaHa Gummies. It also trades in the U.S. under the ticker PLNHF. The company's latest superstore, located in Orange County, California, will have its grand opening on July 1, 2021.
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