The marijuana industry consists of companies directly related to the research, development, and distribution of cannabis products, as well as companies that indirectly support these operations. Traditional stock market indices such as the Nasdaq continue to include more companies from the marijuana industry, as a growing number of regions around the world legalize marijuana. The number of U.S. states that permit marijuana use in some form increased to 36 after voters in several states approved marijuana legalization initiatives on their ballots in last year’s U.S. presidential election.
Some of the Nasdaq-listed marijuana companies include Tilray Inc. (TLRY) and OrganiGram Holdings Inc. (OGI). Many of these companies have managed to maintain revenue growth in spite of the COVID-19 pandemic.
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), an exchange-traded fund, have underperformed the broader market. MJ has provided a total return of 30.6% over the past 12 months, below the benchmark iShares Russell 1000 ETF’s (IWB) total return of 36.8%. These performance figures and all statistics in the tables below are as of Oct. 25, 2021.
Here are the top three marijuana stocks on the Nasdaq with the best value, fastest growth, and most momentum.
These are the marijuana stocks trading on the Nasdaq exchange 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.
|Best Value Marijuana Stocks on the Nasdaq|
|Price ($)||Market Cap ($B)||12-Month Trailing P/S Ratio|
|HEXO Corp. (HEXO)||1.71||0.5||2.3|
|Hydrofarm Holdings Group Inc. (HYFM)||34.89||1.5||2.6|
|Village Farms International Inc. (VFF)||7.81||0.7||2.7|
- HEXO Corp.: HEXO is a Canada-based, vertically integrated, consumer packaged goods cannabis company. The company offers both adult-use and medical cannabis. Its line of products include dried flower, marijuana powder, cannabis oil, and cannabis-infused beverages. In Oct. 2021, HEXO announced that co-founder and Chief Executive Officer (CEO) Sebastien St-Louis would be replaced by Scott Cooper, CEO of Truss Beverage Co., a joint venture of HEXO and Molson-Coors Canada. As Cooper begins his new role, he simultaneously will remain CEO of the joint venture for up to six months to ensure a smooth transition. Bloomberg reported that St-Louis had been forced to step down as CEO after an investor had alleged that HEXO "has not acted in the best interest of its shareholders" under his leadership.
- Hydrofarm Holdings Group Inc.: Hydrofarm Holdings Group manufactures and distributes hydroponics products, including lighting equipment, climate control devices, garden accessories, and related products.
- Village Farms International Inc.: Village Farms International is a Canada-based agricultural producer. In addition to growing vegetables such as tomatoes, bell peppers, and cucumbers, the company now also produces cannabis. In September, the company announced that its cannabis subsidiary, Pure Sunfarms, had completed its first export shipment of medicinal cannabis to Village Farms’ minority interest investee, Australia-based Altum International Pty Ltd. The cannabis will be sold under Altum's Kind Medical brand.
These are the marijuana stocks on the Nasdaq with the highest year-over-year (YOY) sales growth for the most recent quarter. Rising sales can help investors to identify companies that are able to grow revenue organically or through other means, and to find growing companies that have not yet reached profitability. In addition, earnings per share (EPS) can be significantly influenced by accounting factors that may not reflect the overall strength of the business. However, sales growth can also be potentially misleading about the strength of a business, because growing sales on money-losing businesses can be harmful if the company has no plan to reach profitability.
|Fastest Growing Marijuana Stocks on the Nasdaq|
|Price ($)||Market Cap ($B)||Revenue Growth (%)|
|GrowGeneration Corp. (GRWG)||22.03||1.3||189.7|
|Cronos Group Inc. (CRON)||5.65||2.1||58.1|
|Village Farms International Inc. (VFF)||7.81||0.7||47.9|
- GrowGeneration Corp.: GrowGeneration 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. While GrowGeneration is not a pure-play cannabis company, many of its products are used in cannabis cultivation. In October, the company announced the acquisition All Seasons Gardening, an indoor-outdoor garden supply center specializing in hydroponics systems, lighting, and nutrients. All Seasons Gardening is the largest company of its kind in New Mexico. Following that acquisition, GrowGeneration operates 63 hydroponic garden stores in 13 states.
- Cronos Group Inc.: Cronos Group is a Canada-based diversified cannabis company focused on research, technology, and production and distribution of adult-use and medical cannabis products and cannabis oils. On Oct. 20, Cronos announced the launch of the SPINACH FEELZ Chill Bliss 2:1 THC|CBG gummy. The edible product is the first in Canada to feature THC and cultured cannabigerol (CBG), a cannabinoid found in small quantities in the cannabis plant.
- Village Farms International Inc.: See above for company description.
These are the marijuana stocks on the Nasdaq that had the highest total return over the last 12 months.
|Marijuana Stocks on the Nasdaq with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|Sundial Growers Inc. (SNDL)||0.66||1.4||277.1|
|OrganiGram Holdings Inc. (OGI)||2.34||0.7||87.2|
|Tilray Inc. (TLRY)||11.08||5.1||62.2|
|iShares Russell 1000 ETF (IWB)||N/A||N/A||36.8|
|ETFMG Alternative Harvest ETF (MJ)||N/A||N/A||30.6|
- Sundial Growers Inc.: Sundial Growers is a Canada-based cannabis producer. The company produces and distributes cannabis for the adult-use and medical market. It offers dried flower cannabis products in various formats, including pre-rolls, oils, capsules, and more. The company announced on Oct. 7 that it had entered into an arrangement agreement to acquire all issued and outstanding shares of Alcanna Inc. for total consideration of roughly $346 million. Alcanna is the largest private liquor retailer in Canada, operating 171 locations primarily in Alberta.
- OrganiGram Holdings Inc.: OrganiGram Holdings' wholly owned subsidiary, Organigram Inc., is a Canada-based producer of medical and recreational cannabis. Its major focus is producing indoor-grown cannabis.
- Tilray Inc.: Tilray is a Canada-based company that engages in cannabis research, cultivation, and distribution. It sells various cannabis products, hemp-based foods, and alcoholic beverages. Tilray reported on Oct. 7 financial results for its Q1 FY 2022, ended Aug. 31, 2021. The company reported widening net losses on a 43.0% YOY net revenue increase. Tilray cited as key drivers its increased scale, and its success in higher-margin international medical markets and in Canada.
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Nasdaq. “Tilray, Inc. Class 2 Common Stock.” Accessed Oct. 25, 2021.
Nasdaq. “Organigram Holdings Inc. Common Shares.” Accessed Oct. 25, 2021.
YCharts. “Financial Data.” Accessed Oct. 25, 2021.
HEXO Corp. "HEXO Announces Scott Cooper as President & CEO." Accessed Oct. 25, 2021.
Bloomberg. "Hexo CEO Ousted After Shareholder Letter, BNN Bloomberg Says." Accessed Oct. 25, 2021.
Village Farms International Inc. "Village Farms International’s Pure Sunfarms Completes First Export Shipment to Australia for Medicinal Cannabis Market Via Altum International and Commences Cultivation in Second 1.1 Million Square Foot Greenhouse Facility – EU-GMP Certification Inspection of Pure Sunfarms Delta 3 Facility Completed." Accessed Oct. 25, 2021.
GrowGeneration Corp. "GrowGeneration Announces Mutual Termination of HGS Acquisition, Updates Guidance, and Enters New Mexico's Thriving Cannabis Market with Acquisition of All Seasons Gardening." Accessed Oct. 25, 2021.
Cronos Group Inc. "Cronos Group Launches its First Cultured Cannabinoid Product, SPINACH FEELZ™ Chill Bliss 2:1 THC|CBG Gummy." Accessed Oct. 25, 2021.
Sundial Growers Inc. "Sundial Growers to Acquire Alcanna Inc." Accessed Oct. 25, 2021.
Tilray Inc. "Tilray, Inc. Reports First Quarter Fiscal Year 2022 Financial Results." Accessed Oct. 25, 2021.