Top Marijuana Stocks for April 2021
CLIQ.TO, CARA, and GRWG are top for value, growth, and momentum, respectively
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 economic disruption spurred by the pandemic.
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have dramatically outperformed the broader market. MJ has provided a total return of 122.1% over the past 12 months, nearly double the Russell 1000’s total return of 66.1%. These market performance numbers and all statistics in the tables below are as of March 24, 2021.
Here are the top 5 marijuana stocks with the best value, the fastest growth, and the most momentum.
On March 31, 2021, New York passed a law legalizing recreational cannabis, expanding medical use, and decriminalizing possession of small amounts of marijuana, among other measures. Not all of these provisions will go into effect immediately and there is not yet a timeline by which all these measures will be fully implemented.
Best Value Marijuana Stocks
Value investing is a factor-based investing strategy in which you pick stocks that you believe are trading for less than what they are intrinsically worth, usually by measuring the ratio of the stock’s price to one or more fundamental business metrics. A widely accepted value metric is the price-to-earnings ratio (P/E Ratio). Value investors believe that if a business is cheap compared to its intrinsic value, in this case as measured by its P/E ratio, the stock price may rise faster than others as the price comes back in line with the worth of the company. These are the marijuana stocks with the lowest 12-month trailing price-to-earnings (P/E) ratio.
|Best Value Marijuana Stocks|
|Price ($)||Market Cap ($B)||12-Month Trailing P/E Ratio|
|Alcanna Inc. ( CLIQ.TO)||CA$7.90||CA$0.3||21.4|
|NIC Inc. ( EGOV)||33.81||2.3||33.5|
|Innovative Industrial Properties Inc. ( IIPR)||172.84||4.1||53.7|
|Village Farms International Inc. ( VFF.TO)||CA$15.96||CA$1.3||61.2|
|Trulieve Cannabis Corp. ( TRUL.CX)||CA$60.21||CA$7.2||85.9|
- Alcanna Inc.: Alcanna is a Canada-based retailer of alcoholic beverages and cannabis. The company operates liquor stores that sell wines, beers, and spirts, and retail cannabis stores. Alcanna employs about 1,800 people and operates 250 liquor and cannabis retail outlets.
- NIC Inc.: NIC offers services to help governments use the Internet to provide services to citizens and businesses. The company is the nation’s largest provider of digital government services, sites, and secure payment processing. NIC also offers a platform for government licensing and regulation of the cannabis industry. The company serves more than 7,000 federal, state, and local government agencies throughout the U.S. NIC announced on February 10 that it has agreed to be acquired by Tyler Technologies Inc. (TYL) in an all-cash transaction valued at approximately $2.3 billion. Tyler Technologies is a provider of integrated software and technology services to local, state, and federal government entities. The transaction is expected to close in the second quarter of 2021.
- Innovative Industrial Properties Inc.: Innovative Industrial Properties is a real estate investment trust (REIT) that engages in the acquisition, disposition, development, and management of industrial facilities leased to tenants in the medical cannabis industry. The company’s portfolio consists of specialized industrial and greenhouse buildings leased to state-licensed medical-use cannabis cultivators across the U.S.
- Village Farms International Inc.: Village Farms International is a Canada-based agricultural producer. In addition to growing vegetables like tomatoes, bell peppers, and cucumbers, the company also produces cannabis. The company distributes fresh produce from over nine million square feet of Controlled Environment Agriculture (CEA) greenhouses in Canada and the U.S., as well as from partner greenhouses in Canada and Mexico.
- Trulieve Cannabis Corp.: Trulieve Cannabis is a holding company that, through its subsidiaries, engages in the cultivation, possession, sale, and distribution of medical cannabis. Its products are designed to alleviate seizures, muscle spasms, pain, nausea, loss of appetite, and other symptoms associated with serious medical conditions such as cancer. The company operates 83 stores across the U.S., 78 of which are located in Florida, where it serves more than 450,000 patients. Trulieve recently announced that is has agreed to acquire Mountaineer Holding LLC, providing Trulieve with an additional cultivation permit and two additional dispensary permits. Trulieve agreed to acquire Mountaineer for an upfront payment of $6 million. The transaction is expected to close during the second quarter of 2021.
Fastest Growing Marijuana Stocks
These are the top marijuana stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one or the other figure unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of over 2,500% were excluded as outliers.
|Fastest Growing Marijuana Stocks|
|Price ($)||Market Cap ($B)||EPS Growth (%)||Revenue Growth (%)|
|Cara Therapeutics Inc. ( CARA)||19.44||1.0||N/A||2,380|
|GrowGeneration Corp. ( GRWG)||45.81||2.5||100.0||152.6|
|NIC Inc. (EGOV)||33.81||2.3||73.3%||62.1|
|Jushi Holdings Inc. ( JUSH.CX)||CA$8.23||CA$0.9||N/A||600.0|
|Cresco Labs Inc. ( CL.CX)||CA$16.46||CA$3.6||N/A||314.9|
- Cara Therapeutics Inc.: Cara Therapeutics is a clinical-stage biopharmaceutical company focused on developing therapies primarily for the treatment of pruritus, a skin condition causing severe itchiness. The company owns several patents, one of which has claims to certain cannabinoid compounds. Cara Therapeutics has a number of drugs under development that are in various stages of clinical trials. The company’s EPS growth is not recorded in the table above because its earnings changed from negative in Q4 2019 to positive in Q4 2020, its most recent reported quarter and which ended December 31, 2020.
- GrowGeneration Corp.: GrowGeneration is a distributor of agricultural products. The company operates retail hydroponic and organic specialty gardening retail outlets. It offers thousands of products, including plant nutrition, farming soils, advanced lighting technology, hydroponic and aquaponic equipment, and more. As one of the largest hydroponics suppliers in the country it owns and operates 52 retail and distribution centers. GrowGeneration recently announced the appointment of Jeffrey Lasher to the role of chief financial officer (CFO), effective April 15, 2021. Mr. Lasher has previously served as CFO at several other companies, including West Marine Inc. and Crocs Inc. (CROX).
- NIC Inc.: See above for company description.
- Jushi Holdings Inc.: Jushi Holdings is a holding company focused on building a portfolio of branded cannabis and hemp-based assets. The company is engaged in retail, distribution, cultivation, and processing operations. Its brands include: The Bank, focused on plant genetics and cultivation; The Lab, specializing in vape products and concentrates; Nira, maker of hemp-based CBD products that are physician formulated; Nira+, producer of medicinal THC products; Seche, offering various branded ground and flower cannabis products; and Tasteology, a provider of THC-infused products. Jushi’s EPS growth is not recorded in the table above because its earnings changed from positive in Q3 2019 to negative in Q3 2020, its most recent reported quarter and which ended September 30, 2020.
- Cresco Labs Inc.: Cresco Labs is a consumer-packaged cannabis products company involved in growing, manufacturing, and distribution. The company operates in nine states, owns production facilities and dispensaries, and holds 29 retail licenses. Its brands include Cresco, Reserve, Remedi, Mindy’s, Good News, High Supply, Wonder Wellness Co., and FloraCal Farms. Cresco’s EPS growth is not recorded in the table above because its earnings changed from negative in Q3 2019 to positive in Q3 2020, its most recent reported quarter as of March 24, 2021 and which ended September 30, 2020. The company recently announced that it has agreed to acquire Cultivate Licensing LLC and BL Real Estate LLC (collectively known as Cultivate), a Massachusetts-based vertically integrated operator, for upfront consideration of $90 million and an earnout of up to $68 million. The transaction is expected to close in Q4 2021.
Marijuana Stocks with the Most Momentum
Momentum investing is a factor-based investing strategy in which you invest in a stock whose price has risen faster than the market as a whole. Momentum investors believe that stocks which have outperformed the market will often continue to do so, because the factors that caused them to outperform will not suddenly disappear. In addition, other investors, seeking to benefit from the stock’s outperformance, will often purchase the stock, further bidding its price higher and pushing the stock higher still. These are the stocks that had the highest total return over the last 12 months.
|Marijuana Stocks with the Most Momentum|
|Price ($)||Market Cap ($B)||12-Month Trailing Total Return (%)|
|GrowGeneration Corp. (GRWG)||45.81||2.5||1,180|
|Amyris Inc. ( AMRS)||18.76||5.0||772.6|
|Jushi Holdings Inc. (JUSH.CX)||CA$8.23||CA$0.9||648.2|
|Aphria Inc. ( APHA)||17.45||5.5||546.3|
|TerrAscend Corp. ( TER.CX)||CA$13.15||CA$2.3||517.4|
|ETFMG Alternative Harvest ETF (MJ)||N/A||N/A||122.1|
- GrowGeneration Corp.: See above for company description.
- Amyris Inc.: Amyris produces and distributes products that serve markets for specialty and performance chemicals, flavors and fragrances, cosmetics ingredients, pharmaceuticals, and nutraceuticals. The company is also working on developing and producing cannabinoid products. Amyris announced in the second half of February positive pre-clinical results for its RNA COVID-19 vaccine platform. The company announced in October 2020 that it had entered into a collaboration agreement and exclusive license with the Infectious Disease Research Institute to advance a novel RNA vaccine platform and develop a COVID-19 vaccine.
- Jushi Holdings Inc.: See above for company description.
- Aphria Inc.: Aphria is a Canada-based licensed producer of medical cannabis products. Its medical cannabis is 100% greenhouse grown, allowing its plants to benefit from natural sunlight. The company’s products include oils, softgels, oral sprays, and cartridges. Aphria has scheduled a special meeting of shareholders on April 14, 2021 to approve a previously announced business combination with Tilray. Tilray is scheduled to hold its own special meeting of stockholders on April 16, 2021 to approve the merger. The agreement to combine the two companies was announced in December. The combined company would operate under the Tilray name and would be worth approximately $3.9 billion, based on the companies’ share prices on December 15, 2020. The merger agreement is expected to close during the second quarter of 2021.
- TerrAscend Corp.: TerrAscend is a Canada-based integrated cannabis company offering a range of products, brands, and services for the global medical- and adult-use cannabis markets. Its portfolio of businesses include: The Apothecarium, a cannabis dispensary; Arise Bioscience Inc., a manufacturer and distributor of hemp-derived products; Ilera Healthcare, a medical marijuana cultivator, processor, and dispenser; Valhalla Confections, a manufacturer of cannabis-infused edibles; and more. TerrAscend recently announced that Jason Ackerman was stepping down from his roles as chief executive officer (CEO) and executive chairman, effective March 23, 2021. Jason Wild, the company’s chairman, assumed the executive chairman position. Wild said that differences over management style and culture led the board to decide to part ways with Ackerman. TerrAscend is looking for a new CEO.
The comments, opinions and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. While we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described on our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.
These are the marijuana stocks with the best value, fastest growth, and most momentum for April 2021.
Investing in CBD Oil: Tips on How to Invest in CBD Oil
- Written by Gene Daniels
- Last Updated on March 19, 2021
Advertising Disclosure: We may receive commissions when you click our links and make purchases. However, this does not impact our reviews and comparisons. We try our best to keep things fair and balanced, in order to help you make the best choice for you. Always consult with a doctor.
As CBD oil grows increasingly popular around the United States, it’s a potentially lucrative opportunity for investors. While the product has been prevalent among its core users for years, the progressive legalization of the substance means that it’s in more extensive use than ever.
As the stigma against cannabidiol dissipates, the growth potential for companies in the industry increases substantially.
For those who enjoy using CBD oil, the prospect of investing is also a chance to support the industry. Either way, there is an increasing number of opportunities for individuals to invest in the product.
In this article, we’ll look at how to invest in CBD oil, as well as factors you should consider when you weigh up the viability of the market.
The Outlook of the CBD Oil Investment Market
While CBD oil is a relatively new concept to some consumers, substantial investment in the product has been underway for several years. Research suggests that in 2020, the worldwide legal cannabis industry will exceed the value of $19 billion. Experts expect this estimate to exceed $40 billion by 2024.
While these figures encapsulate much more than just CBD oil, they’re an indication of the expected growth of all cannabis-related products. The rapid expansion of the market is primarily attributed to the changing attitude toward the legality of cannabis.
As governments grow more relaxed with cannabis regulation, there will be an increasing number of opportunities to capitalize on new consumers. New consumers mean there will be more investment opportunities as new CBD businesses start and existing businesses expand.
Is CBD Oil a Safer Bet Than Other Cannabis Products?
If you’re hoping to invest in the cannabis industry, you’re most likely searching for the least risky options. As regulation and legality continue to evolve in the American market, the prospect of investing might seem daunting for some individuals. CBD oil is often seen as a safer bet than other cannabis products, but is this true?
The benefit of investing in CBD oil is that it doesn’t have the same psychoactive properties as other cannabis products. Industrial hemp products are now legal across the entire country (if they don’t contain more than 0.3% of THC). While some people may refute the benefits of CBD oil, there is no argument to be made that it is harmful to society.
So, while many lawmakers still oppose the use of traditional cannabis, CBD oil is less controversial. If you’re worried about lawmakers backtracking on cannabis-related legislation, it appears that CBD products are safer than psychoactive cannabis products.
How to Invest in CBD Oil
If you hope to invest in CBD oil, you have a few options available to you. Below, let’s explore some different ways you can use your capital to invest in the CBD industry.
If you’re an entrepreneur or you have previous business experience, you might consider direct involvement in a CBD oil company. Whether you purchase shares in a private CBD company or start your own CBD oil firm, there are plenty of opportunities to invest in your own CBD operation.
As many CBD oil companies are currently local operators, approaching firms in your region can be an excellent way to assess your available investment opportunities. There might already be companies in your city seeking assistance from local investors. If you can bring industry know-how to the table, this may increase your ability to gain access to early-stage investment.
If you plan to invest in a local CBD business, it’s critical to keep your eye on state regulations. While federal law is increasingly cannabis-friendly, some states are preventing full legalization from occurring. Assessing the region’s sentiment toward cannabis and CBD is critical for any investor.
Purchasing Shares in Publicly Traded CBD Companies
The easiest way to invest in CBD is to purchase shares in publicly traded companies that produce CBD oil or related products. Investing in established companies allows you to invest without having any day-to-day involvement in operations or menial decisions. There are now several CBD oil companies that trade on public stock exchanges in the United States and Canada.
Neptune Wellness Center, Valen GroWorks, and Charlotte’s Web are all publicly traded companies with direct involvement in the CBD industry. Numerous other firms also trade on public markets.
Many well-known American businesses are starting to invest in CBD oil and other cannabis products. While investing in these companies won’t provide you with as much exposure to CBD oil as the companies listed above, it’s still an excellent way to access significant brands that support the CBD industry.
Large American firms investing in CBD oil or CBD-related research include Anheuser-Busch, Teva Pharmaceuticals, and others.
Investing in Alternative Firms or Industries
While many investors want direct access to CBD oil companies, you can also invest money in businesses related to the CBD industry. For example, if you want to invest in CBD oil indirectly, you might consider an investment in a coffee shop that provides CBD coffee.
Alternative CBD Oil Businesses
If you would like to invest in CBD oil via an alternative business, various options are available to you. Let’s explore a few of the ways you can capitalize on the growing CBD oil market:
Coffee shops are emerging as a popular destination for CBD enthusiasts. Many coffee store owners now infuse CBD oil and other CBD products into their various coffees and drinks. Coffee shops are one of the most popular CBD-related businesses that you’ll find on the consumer market.
CBD Oil Edibles
While many people consume CBD oil using oil droppers or pills, there is a growing market for edible products. Many people associate edibles with psychoactive THC products, but they’re also popular with CBD users. Whether it be a restaurant or cookie producer, there are plenty of “CBD edible” businesses opening around the country.
CBD Marketing Services
As the CBD industry grows, firms are searching for marketing and promotion companies that understand the industry. There are now marketing services that specialize in helping CBD and cannabis companies expand into new marketplaces. This type of business is excellent if you want to invest in an industry that’s assisting the growth of CBD.
Factors to Consider
If you plan to use any of the investment methods detailed in this article, it’s critical to consider the viability of investing in CBD oil. Below, let’s explore some key points to keep in mind before you invest any money in this industry.
Legalization Appears to Have Legs
If you’ve kept your eye on the CBD industry in recent years, you’ve witnessed rapid legalization throughout the country. CBD oil is legal in all 50 states if the product abides by THC content standards set by the U.S. federal government.
It’s not just CBD oil that is experiencing rapid legalization across the United States and the rest of the world. Other cannabis products, such as recreational marijuana and medicinal marijuana, are also gaining legal status in various corners of the country. States such as Colorado, California, Washington, and Oregon allow adults to consume cannabis for recreational purposes.
While the legalization of other cannabis products doesn’t have a direct impact on CBD oil investments, it can change sentiment toward the industry. If more people are receptive to general cannabis consumption, it might create growth in the CBD oil marketplace.
Research is Continuing to Grow
As CBD oil’s legitimacy grows, so do efforts to research its benefits. While it’s already clear that there are medical benefits associated with CBD oil, this might be the tip of the iceberg. If researchers can prove that there are even more health advantages related to CBD, it could be a watershed moment for the industry.
The historical bias against cannabis products stunted research into its medical properties. The next few years could see substantial growth in the understanding of this unique health product.
This year alone, there have already been several published papers that examine the health impact of CBD oil.
Legality is Complicated
While legality is increasing, it’s also complicated. Cannabis regulation in the United States is in a critical transition period. As federal laws continue to offer progressive solutions for cannabis producers, some states are fighting back. This two-track system makes it hard to predict the future of the market.
Most people view the legalization of CBD oil as positive, but if the government becomes too involved, it may prove costly for smaller investors. Government regulation may restrict access to larger companies and create rules that are too costly for small firms to handle. If this happens, you might see a sudden shift in the viability of some CBD companies.
The bottom line is that CBD oil is still in a state of legal limbo. While there is no doubt that the market appears to be growing, overnight changes in regulation can have a drastic impact on the structure of the market. Investing in the early stages of a high-risk industry may prove costly.
It’s an Inter-Generational Product
While cannabis has an association with younger age groups, CBD oil has proven popular with all generations. It is growing in prevalence with older generations because it isn’t psychoactive and carries a host of health benefits.
A recent survey suggested that 8 percent of Americans over age 65 have tried a CBD product. This percentage accounts for a significant number of people, and it’s likely to grow if more CBD-related health benefits continue to appear.
Competition is Already Present
While the CBD industry is undoubtedly young, there have been several early actors in the market. If you’re hoping to access a market yet to develop any major players, you’re already out of luck.
As more investors enter the market, CBD products are increasingly competitive. In recent years, this has driven down prices and made it harder for small businesses to compete. GenCanna Global USA Inc. recently filed bankruptcy partly due to CBD price drops.
While these larger businesses do make the barriers to entry quite high, there are still plenty of independent producers experiencing success in the industry.
Many investors and industry specialists consider the CBD industry as a “gold rush,” but all this activity can also create unwanted attention from opportunists. Almost all CBD products are experiencing a surge, so make sure to avoid potential scams. With any new industry, it’s essential to be wary of companies that don’t provide extensive financial information.
If you’re unable to verify a company’s key facts or financial figures, they’re likely to be a risky investment. Remember: If something sounds too good to be true, it probably is.
The CBD Oil Industry is Eager to Set Standards
As the CBD oil industry is still relatively new, it doesn’t experience the same regulations as other health products. The FDA may take issue with a company providing false information, but the overall regulatory climate is minimal. A lack of legitimacy can be a deterrent for many investors.
There is now a self-regulating body that upholds strict standards for CBD producers in the United States. The U.S. Hemp Authority provides certifications to hemp producers that uphold industry-leading production standards. This industry regulatory body ensures that CBD consumers can identify producers that act within reliable guidelines.
While this might not be the same as FDA regulation, it’s an excellent first step. By providing control and credibility to the industry, the U.S. Hemp Authority may help investors gain credibility with American consumers.
Start by Educating Yourself
If you’re planning on investing in CBD oil, it’s critical to understand the product and its industry. You don’t need to be a CBD oil user to invest in this growing market, but knowing the product and its applications can help you make a more informed investment decision.
Our website and blog are excellent resources for any individual who wishes to learn more about CBD oil and its benefits. Make sure to explore our content if you’re unfamiliar with the details surrounding this unique supplement.
FAQs About Investing in CBD Oil
Question: How to invest in CBD oil?
Answer: Involved investment, Purchasing shares, and investing in alternative firms are among the three common types of investment in CBD.
Question: Will the market value of CBD oil increase?
Answer: Research suggests that in 2020, the worldwide legal cannabis industry will exceed the value of $19 billion. Experts expect this estimate to exceed $40 billion by 2024.
Question: Is CBD oil safer to invest in rather than other cannabis products?
Answer: CBD oil is often seen as a safer route in investing than other cannabis products.
Question: Is CBD oil legal?
Answer: Currently, CBD oil is legal in all 50 states if the product abides by THC content standards set by the U.S. federal government.
Question: Are there scams in the CBD industry?
Answer: Yes. With any new industry, it’s essential to be wary of companies that don’t provide extensive financial information. If you’re unable to verify a company’s key facts or financial figures, they’re likely to be a risky investment. Remember: If something sounds too good to be true, it probably is.
Question: What is the first step in investing in CBD Oil?
Answer: Start by educating yourself. If you’re planning on investing in CBD oil, it’s critical to understand the product and its industry. You don’t need to be a CBD oil user to invest in this growing market, but knowing the product and its applications can help you make a more informed investment decision.
If you're planning on investing in CBD oil, it's critical to understand the product and its industry. Learn how you can make an informed investment decision.