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.
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These are the marijuana stocks with the best value, fastest growth, and most momentum for April 2021.
Top 5 CBD Companies
The US CBD market has made significant progress since the Farm Bill passed in 2018 and 2020 has brought unique challenges. Despite the social and economic impact of a global pandemic, the industry continues to show signs of strength with healthy consolidation, consumer spending, and investment in strategic marketing. Because the market has seen both sizable expansion and consolidation in 2020, the top 20 brands have technically lost share but still maintain the majority piece of a now much larger pie. As of July 28, 2020 the top 20 CBD companies make up over 17% of the total US CBD market.
Types of Top CBD Companies
The industry is now being strongly influenced by the following primary groups of competitors:
- Powerful CBD-only companies, which have been able to further develop reputations and establish brand loyalty, refine and improve marketing strategies, and grow larger and more diverse customer bases despite barriers faced under past and current regulatory systems. Examples: Charlotte’s Web, CV Sciences.
- Cannabis companies, typically multi-state operators (MSOs), leveraging vast dispensary and retail distribution networks, supply chain infrastructure, brand recognition and capital to create or expand successful CBD lines. Examples: Curaleaf Hemp, Columbia Care.
Supplement brands with natural food store and mass retail chain connections, nutraceutical marketing experience, capital to invest, and established customer bases that are particularly prone to purchasing CBD-infused wellness products. Examples: Barlean’s, Garden of Life, Irwin Naturals, Nature’s Plus.
Disruptors: Those CBD brands little-known prior to 2019, even in CBD circles, who have made tremendous headway over the course of a few months, many being picked up by large retail chains and thrust into the spotlight. Examples: cbdMD, Medterra, Sagely Naturals.
Pharmaceutical companies: GW Pharmaceuticals brought Epidiolex onto the U.S. market at the end of 2018 and its revenues have grown dramatically since that time. Though considered separately from top CBD supplement companies for the purposes of this study, GW Pharmaceuticals carries considerable weight in the US CBD industry, and additional pharmaceutical companies and products are expected to join the market and play an even more important role in the future.
Though only just beginning to dip their toes into the U.S. market, a number of Canadian Licensed Producers (LPs) with tremendous cannabis infrastructure and connections, legitimacy and investor dollars attained via public exchanges in Canada, have expressed intentions to aggressively pursue the U.S. CBD market, namely via buy-outs and M&As. Examples: Aurora Cannabis (Reliva CBD), Canopy Growth Corporation (BioSteel, First & Free, This Works), Cronos Group (Lord Jones), Tilray (Manitoba Harvest, Pollen).
Consumer packaged goods (CPG) behemoths such as Coca-Cola, Anheuser-Busch InBev, and Unilever have been circling the industry since prior to the legalization of industrial hemp cultivation and are eager to establish a name for themselves early. These companies are ready to join the competition as soon as a pathway has been cleared by the FDA, especially when it comes to food additives and dietary supplements. In April 2020, Molson Coors Beverage Company announced the launch of a new joint venture with Canadian cannabis company HEXO to produce non-alcoholic CBD-infused beverages in Colorado.
Largest CBD Companies by Market Share
The top 5 CBD companies have continued to make names for themselves as the US CBD continues to grow. (Brand shares as of February 5, 2020):
Charlotte’s Web has effectively risen to the top of the ranks by leveraging robust marketing strategies deeply rooted in brand values their customers care about like trust and high-quality products. By understanding who they are as a brand, resonating with the right consumers, and investing in large marketing campaigns, they continue to lead the pack. Charlotte’s Web has also expanded its brand portfolio with CBDMedic, CBDClinic, and HarmonyHemp to reach a wider range of consumers.
Medterra is a completely CBD-focused, THC-free brand with broad mainstream consumer appeal. Their focus on ensuring quality and consistency from seed to sale has led to rapid consumer interest. Additionally, they have leaned further into the medical positioning of CBD with their Medterra Clinical brand aimed at capturing more consumers at independent pharmacies and medical practices.
CBD American Shaman
By leveraging a wide and growing distribution network through their franchise, wholesale and affiliate programs, they have been able to quickly climb the CBD company rankings. CBD American Shaman, a vertically-integrated operation, has a broad product line with over 70 SKUs from tinctures to edibles for both humans and pets. Specialty CBD Retailers have seen increased growth as more consumers enter the market and want high-quality product education during their in-store experience.
CBDistillery – Balanced Health Botanicals
CBDistillery has climbed the ranks with heavy investment in digital content such as its #CBDMOVEMENT Blog, the “CBDistillery’s Ultimate CBD User Guide!”, and The CBD Movement Podcast (launched in June 2020). Additionally, their inexpensive products and May 2020 rebrand align with a more mainstream, frequent user.
Green Roads has leveraged product diversity and quality to differentiate themselves in the market. By offering more unique, high-dose products, they can be seen as an innovator and those products better resonate with a variety of consumers. Similarly to Charlotte’s Web, they have leveraged value-based marketing to fuel robust social strategies targeting their core consumers.
Top Online CBD Companies
By building a trusted brand with a traditional, straightforward menu, Charlotte’s Web appeals to new and hesitant consumers. As consumers begin their CBD research process online, they are likely to come across Charlotte’s Web and their education on CBD products.
Balanced Health Botanicals (CBDistillery)
CBDistillery has created a robust online model with athletic sponsorships and influencer marketing, alongside accessible pricing. They have gained a s trong presence online and in independent pharmacies. They are particularly effective in addressing smaller, overlooked markets with tailored local advertising.
Their simple branding and heavy focus on search optimization has made Medterra a strong player in the online CBD space. They have been able to get in front of new entrants to the market, especially with low-price topicals.
As of February 2020, over 4,000 retail outlets carry cbdMD. Their mass adoption across various channels, along with strategic marketing and PR efforts, have no doubt helped in their online sales. cbdMD was the first CBD company allowed to advertise in Times Square in Dec 2018. The company is the official founder of National CBD Day (August 8) and National Hemp Day (February 4).
The company’s vertical integration, producing CBD from hemp grown on its farms in Oregon, allows the company to control and monitor their products, giving them an edge to sustain their high standards. It also allows the company to offer high quality products at a good value. The company has one of the most generous assistance programs, offering lifetime 60% discounts to veterans, individuals on long-term disability, and low-income households. As these segments continue to explore CBD, Lazarus Naturals is well-positioned to gain their attention.
The top CBD companies are shifting as consumers solidify expectations for brands and products.