3 Marijuana Stocks With Valuations That Still Make Sense

The cannabis movement was virtually unstoppable last year. Canada legalized recreational marijuana. President Trump signed the Farm Bill into law, giving the green light to hemp and hemp-based cannabidiol (CBD) production. And a handful of U.S. states legalized weed in some capacity. It was a banner year for the marijuana industry — but not so much for marijuana stocks, which had an abysmal fourth quarter.

However, that’s changed in a big way to begin 2019. Through Feb. 7, the Horizons Marijuana Life Sciences ETF, which holds a basket of more than four dozen pot stocks, had risen by just shy of 50% on a year-to-date basis.

In other words, marijuana stocks are back, and in a big way…

Three pot stocks with reasonable valuations

Rapidly rising share prices, coupled with supply shortages and the ongoing capacity ramp-up throughout Canada, has led to nosebleed valuations throughout the industry. Although most pot stocks won’t be profitable on a forward earnings basis, others, such as Cronos Group, are lugging around forward P/E ratios north of 400.

But the industry isn’t a complete loss. Even following an incredible run over the past five-plus weeks, the following three marijuana stocks still sport valuations that make sense.

OrganiGram Holdings

As has been the case for a long time now, cannabis grower OrganiGram Holdings(NASDAQOTH:OGRMF) continues to offer one of the top value propositions on the basis of forward earnings. Even following an amazing run-up in recent weeks, OrganiGram is valued at a very reasonable 21 times next year’s earnings. Considering that sales are forecast to grow by 891% in fiscal 2019 and…

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