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.
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have slightly underperformed the broader market. MJ has provided a total return of 31.2% over the past 12 months, below the Russell 1000 index's total return of 34.3%. These market performance numbers and all statistics in the tables below are as of Sept. 20, 2021.
Here are the top five marijuana stocks with the best value, the fastest growth, and the most momentum:
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$8.00||CA$0.4||2.0|
|HEXO Corp. (HEXO.TO)||CA$2.41||CA$0.7||2.5|
|Cresco Labs Inc. (CL.CX)||CA$10.45||CA$2.8||2.7|
|Village Farms International Inc. (VFF.TO)||CA$10.80||CA$0.9||2.9|
|Hydrofarm Holdings Group Inc. (HYFM)||42.55||1.9||3.1|
- High Tide Inc.: High Tide is a Canada-based company engaged in the manufacture and retail of cannabis accessories. The company operates a cannabis retail chain in Canada, three accessories e-commerce platforms, and also is a global manufacturer and distributor of consumption accessories. Its brands include Canna Cabana, Meta Cannabis, NewLeaf Cannabis, Grasscity, Smoke Cartel, Daily High Club, DankStop, CBDcity, FAB CBD, Valiant Distribution, and Famous Brandz. High Tide's online platforms had nearly 100 million site visits in 2020. The company's stock also trades in the U.S. on the Nasdaq under the ticker HITI. The company announced in mid-August that it completed its acquisition of DS Distribution Inc., an online retailer operating as DankStop.com. The agreement to acquire DankStop for $3.85 million was announced on July 20, 2021.
- HEXO Corp.: HEXO is a Canada-based consumer-packaged goods cannabis company offering recreational and medical products to serve the global cannabis market. The company's recreational brands for the Canadian adult-use market include HEXO, HEXO Plus, Up, Original Stash, and Bake Sale. It serves the medical market under its HEXO medical cannabis brand. HEXO announced in late August that it has completed its acquisition of Redecan, a privately-owned cannabis producer. The agreement to purchase Redecan for CA$925 million ($723 million) was first announced in late May 2021.
- Cresco Labs Inc.: Cresco Labs is involved in growing, manufacturing, distribution, and packaging of cannabis products. The company operates in 10 states, including production facilities and dispensaries. Its brands include Cresco, Reserve, 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. The company announced in early September that it has completed its acquisition of Cultivate Licensing LLC and BL Real Estate LLC, collectively called Cultivate. The agreement to acquire the multistate cannabis operator for upfront consideration of $90 million and an earnout of up to $68 million was first announced in mid-March 2021.
- Village Farms International Inc.: Village Farms International is a Canada-based vertically integrated greenhouse produce company. In addition to growing, producing, and distributing fresh to national grocers in North America, the company also produces cannabis. The company's brands include: Village Farms, a vertically integrated greenhouse grower; Pure Sunfarms, a cannabis producer; Balanced Health Botanicals, a CBD brand with an e-commerce platform; Village Fields Hemp, a hemp grower; and VF Clean Energy, a subsidiary that converts landfill gas to clean energy. The company's stock also trades in the U.S. on the Nasdaq under the ticker VFF. Village Farms announced in mid-August the acquisition of Balanced Health Botanicals for $75 million. Balanced Health Botanicals is a privately-held company based in Colorado that owns and operates one of the largest brands in the U.S. CBD market.
- Hydrofarm Holdings Group Inc.: Hydrofarm Holdings Group is a holding company that, through its subsidiaries, makes and distributes hydroponic products to customers throughout the U.S. and Canada. The company offers hundreds of brands. It has a total of eight distribution centers, offering a product line of more than 5,000 items. Hydrofarm announced in early August that it has acquired Greenstar Plant Products Inc., a Canada-based nutrient company, for approximately $83 million. Greenstar manufactures the Grotek and Gaia Green brands and is Hydrofarm's latest acquisition of a plant nutrient manufacturer. In July, the company acquired Aurora Innovations Inc., Aurora International Inc., and Gotham Properties LLC, which are collectively called Aurora.
These are the marijuana stocks with the highest year-over-year (YOY) sales growth for the most recent quarter. Rising sales can help investors identify companies that are able to grow revenue organically or through other means, and find growing companies that have not yet reached profitability. In addition, earnings per share can be significantly influenced by accounting factors that may not reflect the overall strength of the business. However, sales growth can also be potentially misleading about the strength of a business, because growing sales on money-losing businesses can be harmful if the company has no plan to reach profitability.
|Fastest Growing Marijuana Stocks|
|Price ($)||Market Cap ($B)||Revenue Growth (%)|
|Jushi Holdings Inc. (JUSH.CX)||CA$5.10||CA$0.9||219.7|
|GrowGeneration Corp. (GRWG)||26.15||1.6||189.7|
|Ayr Wellness Inc. (AYR.A.CX)||CA$27.35||CA$1.6||185.6|
|Planet 13 Holdings Inc. (PLTH.CX)||CA$5.69||CA$1.1||170.4|
|Verano Holdings Corp. (VRNO.CX)||CA$14.77||CA$1.8||164.3|
- 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 maker of hemp-based CBD products that are physician formulated; 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. The company recently announced that it has completed its acquisition of Nature's Remedy of Massachusetts Inc. and certain of its affiliates. Jushi paid total upfront consideration of $91.2 million for the vertically-integrated, single-state cannabis operator.
- GrowGeneration Corp.: GrowGeneration is a distributor of agricultural products and one of the largest hydroponics suppliers in the country. 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. It owns and operates 60 retail and distribution centers. GrowGeneration has been on an acquisition spree in 2021, its latest purchases including: Commercial Grow Supply, a California-based hydroponic superstore; and Hoagtech Hydroponics, a Washington-based hydroponic equipment and indoor gardening store. Hoagtech and Commercial Grow Supply marked GrowGeneration's 13th and 14th acquisitions since the start of the year, respectively. The financial terms of the transactions were not disclosed.
- 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, Sira Naturals, Entourage, Highly Edible, Cannapunch, and Lit Cartridges. Ayr Wellness also trades OTC in the U.S. under the ticker AYRWF. The company recently announced that it has completed its acquisition of Garden State Dispensary NJ LLC, one of 12 vertical permit holders in New Jersey, for total upfront consideration of $101 million. Any earnouts based on exceeding revenue target thresholds in 2022 will be capped at a maximum of $97 million.
- Planet 13 Holdings Inc.: Planet 13 Holdings is a vertically-integrated cannabis company engaged in the cultivation, production, and distribution of cannabis and related products. The company currently has operations in Nevada and California. The company offers vapes, edibles, pre-rolls, and concentrates. Planet 13's brands include, Planet 13 Las Vegas, Medizin, Trendi, Leaf & Vine, Purc Coffee, Planet M, Dreamland Chocolates, and HaHa gummies. Planet 13's stock also trades OTC in the U.S. under the ticker PLNHF.
- Verano Holdings Corp.: Verano Holdings is a vertically integrated, multistate cannabis operator. The company produces a wide range of medical and adult-use cannabis products, which it sells through its portfolio of brands: Verano, Avexia, Encore, and MÜV. It owns and operates 11 cultivation and manufacturing facilities and 85 retail locations in a number of states throughout the U.S. The company's stock also trades OTC in the U.S. under the ticker VRNOF. Verano announced in late July that it has agreed to acquire all of the equity interests of WSCC Inc., which does business under the name Sierra Well, for $29.0 million, subject to adjustment. Sierra Well has two major dispensaries as well as active cultivation and production capacity.
Momentum investing is a factor-based investing strategy in which you invest in a stock whose price has risen faster than the market has as a whole. Momentum investors believe that stocks that have outperformed the market will often continue to do so because the factors that caused them to outperform will not suddenly disappear. In addition, other investors, seeking to benefit from the stock's outperformance, will often purchase the stock, further bidding its price higher and pushing the stock higher still. These are the stocks that had the highest total return over the past 12 months.
|Marijuana Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Sundial Growers Inc. (SNDL)||0.68||1.4||159.3|
|Tilray Inc. (TLRY)||11.23||5.0||110.3|
|OrganiGram Holdings Inc. (OGI.TO)||CA$2.96||CA$0.9||96.0|
|Innovative Industrial Properties Inc. (IIPR)||233.76||5.6||93.2|
|Green Thumb Industries Inc. (GTII.CX)||CA$32.55||CA$7.2||74.8|
|ETFMG Alternative Harvest ETF (MJ)||N/A||N/A||31.2|
- Sundial Growers Inc.: Sundial Growers is a Canada-based diversified cannabis company engaged in the cultivation, manufacturing and processing, and retailing of various cannabis products. The company focuses on inhalables for the Canadian adult-use market. Its branded products are available in flower, vape, pre-roll, oil, concentrates, and edibles. The company's brands include Sundial, Top Leaf, Palmetto, and Grasslands. Sundial announced in July that it has completed its acquisition of Inner Spirit Holdings Ltd. The agreement was first announced in early May 2021 with a transaction value of approximately CA$131 million ($102 million).
- Tilray Inc.: Tilray is a Canada-based cannabis lifestyle and consumer-packaged goods company with global operations. The company engages in cannabis research, cultivation, and distribution. It sells various cannabis products, hemp-based foods, and alcoholic beverages. Tilray offers products under more than 20 brands in more than 20 countries in North America, Europe, Australia, and Latin America.
- OrganiGram Holdings Inc.: OrganiGram Holdings is a Canada-based producer of medical and recreational cannabis focused on producing high-quality, indoor-grown cannabis. It is the parent company of Organigram Inc., a producer of cannabis products, and The Edibles and Infusions Corp., a cannabis-infused, soft-chew and confectionary manufacturer. Its brands include The Edison Cannabis Co., Indi, Bag o' Buds, SHRED, and Trailblazer. OrganiGram's stock also trades in the U.S. on the Nasdaq under the ticker OGI. The company announced in early August the appointment of Beena Goldenberg as chief executive officer (CEO), effective Sept. 9, 2021. Goldenberg previously served as CEO of The Supreme Cannabis Co. Inc. and CEO of Hain-Celestial Canada ULC.
- 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. Innovative Industrial Properties recently announced that it acquired a property in Missouri for $1.53 million and entered into a long-term lease with a subsidiary of Calyx Peak Inc.
- Green Thumb Industries Inc.: Green Thumb Industries is a consumer-packaged cannabis products company and retailer. It manufactures and distributes a variety of branded cannabis products through its portfolio of brands, including Beboe, Dogwalkers, Dr. Solomon's, incredibles, Rythm, and the Feel Collection. The company also owns and operates retail cannabis stores called Rise. Green Thumb has 13 manufacturing facilities and scores of retail locations, with operations across 12 U.S. markets. The company's stock also trades OTC in the U.S. under the ticker GTBIF. Green Thumb announced in early September that it acquired GreenStar Herbals Inc., owner and operator of two adult-use retail locations in Massachusetts. The acquisition also includes a third retail location, which is scheduled to open in 2021. Financial terms of the transaction were not disclosed.
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