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), Aurora Cannabis Inc. (ACB), 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.
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have dramatically underperformed the broader market, providing investors with a total return of -47.2% compared to the S&P 500’s total return of 23.9% over the past 12 months. These market performance numbers and the statistics in the tables below are as of August 26.
Here are the top 3 marijuana stocks with the best value, the fastest sales 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.
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 now produces cannabis. Village Farms International reported a 15.1% increase in produce sales for Q2 2020, which ended June 30, 2020. However, the company also posted a net loss of $119,000, a significant deterioration from net income of $3.7 million in the year-ago quarter.
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. The company announced in late June the appointment of Deborah Keeley to the role of Chief Financial Officer (CFO), effective immediately. Keeley replaced Leo Jaschke, who resigned from his post.
Aphria Inc.: Aphria is a Canada-based company engaged in the production and sale of medical and recreational cannabis. The company announced earlier this month that it had entered into a Strategic Supply Agreement with Canndoc Ltd., a subsidiary of InterCure Ltd., a leading Israel-based medical cannabis producer. Aphria will supply Canndoc with dried bulk flower over a two-year period under the terms of the contract.
Fastest Growing Marijuana Stocks
These are the marijuana stocks with the highest year over year (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.
Neptune Wellness Solutions Inc.: Neptune Wellness Solutionsis a Canada-based integrated health and wellness company. The company is focused on building a portfolio of natural, plant-based consumer products, including cannabis and hemp. Neptune reported revenue growth of 389.9% for Q1 of its 2021 fiscal year (FY), which ended June 30, 2020. The company announced in mid-June the launch of Neptune Halo, an electronic pulse oximeter device that detects oxygen saturation levels in the body and could be used as an important tool in the battle against COVID-19.
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.
Cresco Labs Inc.: Cresco Labs is a consumer-packaged cannabis products company involved in growing, manufacturing, and distribution. The company announced in late June the appointment of Dennis Olis as CFO. He will replace Ken Amann, who will be retiring at the end of the year.
Marijuana Stocks with the Most Momentum
These are the marijuana stocks that had the highest total return over the last 12 months.
Trulieve Cannabis Corp.: Trulieve Cannabis is a Canada-based holding company that, through its subsidiaries, engages in the cultivation, possession, sale, and distribution of medical cannabis.
Planet 13 Holdings Inc.: Planet 13 is a holding company that, through its subsidiaries, develops cannabis-based products. The company’s products include cannabis, cannabis extracts, infused products, vapes, edibles, and more.
Green Thumb Industries Inc.: Green Thumb Industries operates as a pharmaceutical company that manufactures and distributes medical marijuana and cannabis products.