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 and revenue growth.
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 -56.4% compared to the S&P 500’s total return of 5.6%. These market performance numbers and the statistics in the tables below are as of June 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.
- 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 23, the company announced that it had completed the initial closing of a $61.5 million sale of retail assets to Hightimes Holding Corp., the parent company of High Times magazine. The deal involves the sale of a portfolio of equity and assets related to operating and planned California-based dispensaries.
- Village Farms International Inc.: Village Farms International is a Canada-based agricultural producer. In addition to growing standard vegetables like tomatoes, bell peppers, and cucumbers, the company also produces cannabis. In June, the company’s large-scale cannabis production joint venture, Pure Sunfarms, began to ship branded products to customers in Saskatchewan. The venture also received regulatory approval to begin shipments to Manitoba soon.
- Aphria Inc.: Aphria is a Canada-based company engaged in the production and sale of medical and recreational cannabis.
Fastest Growing Marijuana Stocks
These are the marijuana stocks with the highest year-over-year (YOY) revenue growth for the most recent quarter. Rising revenue shows that a company’s business is growing. This is often used to measure growth of young companies that have not yet reached profitability.
|Fastest Growing Marijuana Stocks|
|Price ($)||Market Cap ($M)||Revenue Growth (%)|
|The Valens Co. (VLNS.TO)||CA$2.56||CA$326.9||1,340|
|4Front Ventures Corp. (FFNT.CX)||CA$0.56||CA$366.1||323.7|
|Green Thumb Industries Inc. (GTII.CX)||CA$13.70||CA$2,846||270.9|
- The Valens Co.: The Valens Company, formerly Valens GroWorks Corp., is a Canada-based cannabis company specializing in processing and formulation. On June 22, Valens indicated that it had completed the process of rebranding itself The Valens Company. All stock symbols for the company’s securities will remain the same.
- 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. On May 14, the company reported $102.6 million in revenue for Q1 2020.
Marijuana Stocks with the Most Momentum
These are the marijuana stocks that had the highest total return over the last 12 months.
- 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.
- 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.
- 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 June 26, the company opened its 52nd store in the U.S., located in Ocala, Florida. Florida is one of Trulieve’s biggest U.S. markets. .