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 pandemic-spurred economic downturn.
On November 3, 2020, voters in New Jersey, Arizona, and Montana approved ballot measures to legalize recreational marijuana, and Mississippi has voted to legalize medical marijuana use. South Dakota approved ballot measures to approve both.
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have dramatically underperformed the broader market. MJ has provided a total return of -6.9% over the past 12 months, well below the Russell 1000’s total return of 19.7%, as of December 21, 2020. All statistics in the tables below are as of December 22.
Here are the top 3 marijuana stocks with the best value, the fastest 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|
|Price ($)||Market Cap ($M)||12-Month Trailing P/S Ratio|
|Harvest Health & Recreation Inc. (HARV.CX)||CA$2.54||CA$933.5||3.1|
|Village Farms International Inc. (VFF.TO)||CA$12.55||CA$829.1||3.4|
|OrganiGram Holdings Inc. (OGI.TO)||CA$1.71||CA$396.9||3.5|
- Harvest Health & Recreation Inc.: Harvest Health & Recreation is a Canada-based cannabis company that specializes in cultivation, dispensaries, and production facilities for medicinal and recreational marijuana. The company announced in early December the retirement of Chief Operating Officer (COO) Ronald Goodson, effective December 31, 2020. The company has no plans to fill his position and his responsibilities will be carried out by other members of the senior leadership team.
- Village Farms International Inc.: Village Farms International is a Canada-based agricultural producer. In addition to growing standard vegetables like tomatoes, bell peppers, and cucumbers, the company now also produces cannabis. The company announced in early November that it had acquired the remaining 41.3% of Pure Sunfarms Corp. from Emerald Health Therapeutics Inc. Village Farms International now owns 100% of the cannabis producer’s common shares.
- OrganiGram Holdings Inc.: OrganiGram Holdings is a Canada-based licensed medical marijuana producer. Through its subsidiaries, the company offers dried cannabis and cannabis oil.
Fastest Growing Marijuana Stocks
These are the marijuana stocks with the highest year-over-year (YOY) sales growth for the most recent quarter. Rising sales show that a company’s business is growing. This is often used to measure growth of young companies that have not yet reached profitability.
|Fastest Growing Marijuana Stocks|
|Price ($)||Market Cap ($B)||Revenue Growth (%)|
|Jushi Holdings Inc. (JUSH.CX)||CA$6.16||CA$0.7||600.0|
|Cresco Labs Inc. (CL.CX)||CA$12.65||CA$2.7||326.9|
|Curaleaf Holdings Inc. (CURA.CX)||CA$15.80||CA$10.5||197.5|
- Jushi Holdings Inc.: Jushi Holdings is a holding company focused on building a portfolio of branded cannabis and hemp-based assets engaged in retail, distribution, cultivation, and processing operations. The company announced in early December that it had completed the acquisition of the remaining 21% of the issued and outstanding equity of Dalitso LLC. Jushi Holdings now owns 100% of the Virginia-based pharmaceutical processor permit holder.
- Cresco Labs Inc.: Cresco Labs is a consumer-packaged cannabis products company involved in growing, manufacturing, and distribution.
- Curaleaf Holdings Inc.: Curaleaf Holdings is a Canada-based holding company that, through its subsidiaries, engages in the production and distribution of cannabis products. The company announced in mid-November the appointment of President Joseph Bayern to the role of chief executive officer (CEO), effective January 1, 2021. Joseph Lusardi, the current CEO, will remain on the company’s board of directors after January 1.
Marijuana Stocks with the Most Momentum
These are the marijuana stocks that had the highest total return over the last 12 months.
|Marijuana Stocks with the Most Momentum|
|Price ($)||Market Cap ($M)||12-Month Trailing Total Return (%)|
|GrowGeneration Corp. (GRWG)||40.67||2,226||854.7|
|TerrAscend Corp. (TER.CX)||CA$12.51||CA$929.2||392.5|
|Jushi Holdings Inc. (JUSH.CX)||CA$6.16||CA$690.2||238.5|
|ETFMG Alternative Harvest ETF (MJ)||N/A||N/A||-6.9|
- GrowGeneration Corp.: GrowGeneration is a distributor of agricultural products. The company operates retail hydroponic and organic specialty gardening retail outlets. It offers plant nutrition, farming soils, crops, advanced lighting technology, hydroponic and aquaponic equipment, and more. GrowGeneration announced in mid-December the acquisition of Grassroots Hydroponics, a three-store chain of hydroponic garden centers based in Southern California. The financial terms of the transaction were not disclosed. The deal marks the company’s second California-based acquisition within a one-month period, after acquiring The GrowBiz in mid-November. It also marks GrowGeneration’s seventh acquisition since the start of the year.
- TerrAscend Corp.: TerrAscend is a Canada-based integrated cannabis company focused on medical cannabis research, development, devices, and delivery systems. The company announced in late November that it had received a permit from the New Jersey Department of Health to dispense medical cannabis from its first dispensary in New Jersey, which was scheduled to open on November 30.
- Jushi Holdings Inc.: See above for company description.