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.
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have underperformed the broader market. MJ has provided a total return of -7.9% over the past 12 months, well below the Russell 1000’s total return of 30.4%.1 These market performance numbers and all statistics in the tables below, except for the “Fastest Growing Marijuana Stocks” table, are as of Nov. 24, 2021. The statistics in the growth table are as of Nov. 30, 2021.
Below we look at the top five 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 companies in the early stages of development or industries suffering from major shocks, this can be substituted as a rough measure of a business’s value. A business with higher sales could eventually produce more profit when it achieves (or returns to) profitability. The P/S ratio shows how much you’re paying for the stock for each dollar of sales generated.
Source: YCharts
- HEXO Corp.: HEXO is a Canada-based consumer-packaged goods cannabis company offering recreational and medical products to serve the global cannabis market. The company’s recreational brands for the Canadian adult-use market include HEXO, HEXO Plus, Up, Original Stash, and Bake Sale. It serves the medical market under its HEXO medical cannabis brand.2 HEXO’s stock also trades in Canada on the Toronto Stock Exchange (TSX) under the ticker HEXO.TO. On Oct. 18, the company announced the departure of co-founder and Chief Executive Officer (CEO) Sebastien St-Louis in a major shakeup of the executive ranks. The company also announced the resignation of Chief Operating Officer (COO), Donald Courtney, who will remain as COO until a replacement is found.3 Two days later, HEXO named Scott Cooper as the company’s new president and CEO. Cooper previously served as president and CEO of Truss Beverage Co., a joint venture (JV) between Molson-Coors Canada and HEXO.4
- High Tide Inc.: High Tide is a Canada-based company engaged in the manufacture and retail of cannabis accessories.5 The company operates a cannabis retail chain in Canada, three accessories e-commerce platforms, and also is a global manufacturer and distributor of consumption accessories.6 Its brands include Canna Cabana, Meta Cannabis, NewLeaf Cannabis, Grasscity, Smoke Cartel, Daily High Club, DankStop, CBDcity, FAB CBD, Blessed CBD, Valiant Distribution, and Famous Brandz. High Tide’s online platforms had nearly 100 million site visits in 2020.7 The company’s stock also trades in the U.S. on the Nasdaq under the ticker HITI. The company recently announced an agreement to acquire…
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