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 economic disruption spurred by the pandemic.
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have dramatically outperformed the broader market. MJ has provided a total return of 85.2% over the past 12 months, well above the iShares Russell 1000 ETF's (IWB) total return of 51.5%.1 These market performance numbers and all statistics in the tables below are as of April 28, 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 not yet a timeline by which all these measures will be fully implemented.2
Value investing is a factor-based investing strategy in which you pick stocks that you believe are trading for less than what they are intrinsically worth, usually by measuring the ratio of the stock's price to one or more fundamental business metrics. A widely accepted value metric is the price-to-earnings ratio (P/E Ratio). Value investors believe that if a business is cheap compared to its intrinsic value, in this case as measured by its P/E ratio, the stock price may rise faster than others as the price comes back in line with the worth of the company. These are the marijuana stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio.
| Best Value Marijuana Stocks |
| | Price ($) | Market Cap ($B) | 12-Month Trailing P/E Ratio |
| High Tide Inc. ( HITI.V) | CA$0.65 | CA$0.4 | 2.1 |
| Village Farms International Inc. ( VFF.TO) | CA$14.00 | CA$1.1 | 3.7 |
| Acreage Holdings Inc. ( ACRG.A.U.CX) | 5.19 | 0.5 | 4.5 |
| Aurora Cannabis Inc. ( ACB.TO) | CA$10.62 | CA$2.1 | 4.7 |
| Charlotte's Web Holdings Inc. ( CWEB.TO) | CA$4.79 | CA$0.7 | 4.7 |
Source: YCharts
- 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.3 Its brands include Canna Cabana, Kush Bar, New Leaf, META Cannabis, Grasscity, and Smoke Cartel.4 High Tide announced at the end of March financial results for Q1 of its 2021 fiscal year (FY), the three-month period ending Jan. 31, 2021. Its net loss expanded to CA$16.8 million ($13.7 million) from CA$3.9 million ($3.2 million) in the year-ago quarter. Revenue rose 179.4%. Earnings were hurt by a non-cash accounting charge involving the revaluation of derivative liability of CA$10.5 million ($8.5 million).56
- 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.7 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.8
- 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.9 Acreage has a footprint in 13 U.S. states, including 29 operational dispensaries and 18 cultivation and processing licenses.10
- Aurora Cannabis Inc.: Aurora Cannabis is a Canada-based integrated cannabis company engaged in the cultivation, production, and distribution of medicinal and recreational cannabis and related products. The company operates in 25 countries. Its medical brands include, CanniMed, MedReleaf, Aurora, and WMMC. Aurora's recreational brands include, San Rafael, Daily Special, Aurora drift, Whistler Cannabis, AltaVie, and Woodstock.11
- Charlotte's Web Holdings Inc.: Charlotte's Web is the leading vertically integrated producer and distributor of hemp-based cannabidiol (CBD) wellness products by market share.12 The company grows its own proprietary non-GMO hemp genetics on family farms that are made into health and wellness products. Its products include oils, capsules, gummies, topicals, isolates, and various pet products.13
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.
None of the companies listed below reported positive EPS growth in the most recent quarter. They were thus solely ranked by revenue growth.
| Fastest Growing Marijuana Stocks |
| | Price ($) | Market Cap ($B) | EPS Growth (%) | Revenue Growth (%) |
| Jushi Holdings Inc. ( JUSH.CX) | CA$8.56 | CA$1.0 | N/A | 600.0 |
| 4Front Ventures Corp. ( FFNT.CX) | CA$1.61 | CA$0.9 | N/A | 361.0 |
| Cresco Labs Inc. ( CL.CX) | CA$15.20 | CA$3.4 | N/A | 307.4 |
| High Tide Inc. (HITI.V) | CA$0.65 | CA$0.4 | N/A | 179.4 |
| TerrAscend Corp. ( TER.CX) | CA$13.00 | CA$2.3 | N/A | 152.4 |
Source: YCharts
- 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.14 Jushi recently announced it had reached an agreement to buy OhiGrow LLC, a licensed cultivator in Ohio, for $5.0 million in cash. The acquisition includes an approximately 10,000 square foot facility and 1.35 acres of land. The deal is expected to close in the third quarter of 2021.15
- 4Front Ventures Corp.: 4Front Ventures owns and operates cannabis cultivation and production facilities. It cultivates marijuana, produces cannabis flower, edibles, and oil-based products, and distributes its products via medical dispensaries or adult-use stores. It owns and operates production and retail facilities across five U.S. states.16 Its businesses include: BrightLeaf Development, which oversees cultivation, production, and manufacturing; Mission Dispensaries, a network of branded medical dispensaries and adult-use stores; and Pure Ratios, a maker of therapeutic cannabis products.17
- 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.18 Its brands include Cresco, Reserve, Remedi, High Supply, and Wonder Wellness Co.19 Cresco Labs recently completed its acquisition of Bluma Wellness Inc., a vertically integrated operator in Florida.20 The deal was valued at $213 million when it was announced in January.21
- High Tide Inc.: 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.22 TerrAscend recently reached an agreement to acquire GuadCo LLC and KCR Holdings LLC for about $70 million. The deal includes three retail dispensaries in Pennsylvania.23
Momentum investing is a factor-based investing strategy in which you invest in a stock whose price has risen faster than the market as a whole. Momentum investors believe that stocks which have outperformed the market will often continue to do so, because the factors that caused them to outperform will not suddenly disappear. In addition, other investors, seeking to benefit from the stock's outperformance, will often purchase the stock, further bidding its price higher and pushing the stock higher still. These are the stocks that had the highest total return over the last 12 months.
| Marijuana Stocks with the Most Momentum |
| | Price ($) | Market Cap ($B) | 12-Month Trailing Total Return (%) |
| GrowGeneration Corp. ( GRWG) | 45.05 | 2.6 | 885.8 |
| Jushi Holdings Inc. (JUSH.CX) | CA$8.56 | CA$1.0 | 498.6 |
| Ayr Wellness Inc. ( AYR.A.CX) | CA$36.21 | CA$1.4 | 399.4 |
| Planet 13 Holdings Inc. ( PLTH.CX) | CA$8.55 | CA$1.0 | 377.7 |
| 4Front Ventures Corp. (FFNT.CX) | CA$1.61 | CA$0.9 | 353.5 |
| iShares Russell 1000 ETF (IWB) | N/A | N/A | 51.5 |
| ETFMG Alternative Harvest ETF (MJ) | N/A | N/A | 85.2 |
Source: YCharts
- 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 53 retail and distribution centers.24 GrowGeneration announced in late March the appointment of Jeffrey Lasher to as chief financial officer (CFO). Lasher replaces Monty Lamirato, who has retired.25
- Jushi Holdings Inc.: See above for company description.
- Ayr Wellness Inc.: Ayr is a vertically integrated multi-state cannabis operator.26 It engages in the cultivation, manufacturing, and distribution of cannabis products, including flower, oil, vaporizers, and edibles. Its portfolio of brands includes, Jimmy's Choice, Entourage, Highly Edible, Wicked Sour, and Nordic Goddess.27 In late March, Ayr Wellness announced the completion of two acquisitions: Ohio Medical Solutions Inc., an Ohio processor, for $1.15 million; and management company of Parma Wellness Center LLC for $17 million.2829
- 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.30 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.31
- 4Front Ventures Corp.: See above for company description.
The comments, opinions and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described on our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.
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