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 GW Pharmaceuticals PLC (GWPH). 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.
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have dramatically underperformed the broader market over the past 12 months. Marijuana stocks have a total return of -50.1% compared to the S&P 500's total return of 9.5%. These market performance numbers and the statistics in the tables below are as of July 29.
Here are the top 3 marijuana stocks with the best value, the fastest revenue 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|
|Market Cap ($M)||12-Month Trailing P/S Ratio|
|Harvest Health & Recreation Inc. (HARV.CX)||CA$1.30||CA$470.6||2.0|
|Village Farms International Inc. (VFF.TO)||CA$8.47||CA$476.4||2.3|
|TerrAscend Corp. (TER.CX)||CA$4.15||CA$305.0||3.2|
- Harvest Health & Recreation Inc.: Harvest Health & Recreation is a Canada-based cannabis company that specializes in cultivation, dispensaries, and production facilities for medicinal and recreational marijuana. On June 22, the company announced the appointment of Deborah Keeley as Chief Financial Officer, effective immediately. Keeley was previously the Vice President of Finance and Tax with Harvest Health & Recreation.
- Village Farms International Inc.: Village Farms International is a Canada-based agricultural producer. In addition to growing standard vegetables like tomatoes, bell peppers, and cucumbers, the company also produces cannabis. On July 24, the company announced that Pure Sunfarms, its majority-owned joint venture for cannabis production, had begun to ship branded cannabis products to retailers in Manitoba, Canada.
- TerrAscend Corp.: Integrated cannabis company TerrAscend is a Canadian firm focused on medical cannabis research, development, devices, and delivery systems.
Fastest Growing Marijuana Stocks
These are the marijuana stocks with the highest year-over-year (YOY) revenue growth for the most recent quarter. Rising revenue shows that a company’s business is growing. This is often used to measure growth of young companies that have not yet reached profitability.
|Fastest Growing Marijuana Stocks|
|Price ($)||Market Cap ($M)||Revenue Growth (%)|
|4Front Ventures Corp. (FFNT.CX)||CA$0.71||CA$359.5||348.9|
|Green Thumb Industries Inc. (GTII.CX)||CA$17.70||CA$3,677||270.9|
|Cresco Labs Inc. (CL.CX)||CA$7.48||CA$1,508||218.1|
- 4Front Ventures Corp.: 4Front Ventures owns and operates a group of cannabis cultivation and production facilities. The company also packages, distributes, and retails cannabis products.
- Green Thumb Industries Inc.: Green Thumb Industries operates as a pharmaceutical company that manufactures and distributes medical marijuana and cannabis products. Green Thumb is continuing to expand rapidly in spite of the COVID-19 pandemic. On June 26, the company announced the opening of its 48th retail location in the U.S.
- Cresco Labs Inc.: Cresco Labs is a consumer-packaged cannabis products company involved in growing, manufacturing, and distribution. On July 1, the company announced it was expanding its real estate partnership with Innovative Industrial Properties, Inc. (IIPR) on several fronts.
Marijuana Stocks with the Most Momentum
These are the marijuana stocks that had the highest total return over the last 12 months.
|Marijuana Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Trulieve Cannabis Corp. (TRUL.CX)||CA$22.00||CA$2.4||60.0|
|Amyris Inc. (AMRS)||4.44||0.9||57.5|
|Sprott Inc. (SII.TO)||CA$54.59||CA$1.4||47.4|
|ETFMG Alternative Harvest ETF (MJ)||N/A||N/A||-50.1|
- Trulieve Cannabis Corp.: Trulieve Cannabis is a holding company that, through its subsidiaries, engages in the cultivation, possession, sale, and distribution of medical cannabis. On July 23, Trulieve announced the opening of its 55th U.S. retail location in Tarpon Springs, Florida.
- Amyris Inc.: Amyris is an industrial biotechnology company that produces high performance products for the health and wellness, clean beauty, and flavor and fragrance markets. The company utilizes cannabis in some of its products.
- Sprott Inc.: Sprott is a Canadian investment management services company. Sprott Capital Partners, the company's wealth management division, includes product offerings in the cannabis sector.
YCharts. "Financial Data," Accessed July 29, 2020.
Harvest Health & Recreation, Inc. "Harvest Announces the Appointment of Deborah Keeley as Chief Financial Officer." Accessed July 29, 2020.
Village Farms International, Inc. "Village Farms International's Cannabis Joint Venture Pure Sunfarms Begins Shipping Branded Products to Manitoba." Accessed July 29, 2020.
Green Thumb Industries, Inc. "Green Thumb Industries to Open Essence South Durango, Its Fifth Cannabis Store in Las Vegas Area and 48th in the Nation, on June 27." Accessed July 29, 2020.
Cresco Labs, Inc. "Cresco Labs Closes Sale-and-Leaseback for Massachusetts Facility and Expands Real Estate Partnership with Innovative Industrial Properties." Accessed July 29, 2020.
Trulieve Cannabis Corp. "Trulieve Opens 55th US Location, Celebrates Four Years of Industry-Leading Innovation." Accessed July 29, 2020.
Sprott, Inc. "Sprott Private Wealth," Accessed July 29, 2020.