Top Marijuana Stocks for January 2022

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GRWG, VRNO.CX, and IIPR are apical for value, growth, and momentum, respectively

The marijuana manufacture is made up of companies that either enactment oregon are engaged successful the research, development, distribution, and merchantability of aesculapian and recreational marijuana. Cannabis has begun to summation wider acceptance and has been legalized successful a increasing fig of nations, states, and different jurisdictions for recreational, medicinal, and different uses. Some of the biggest companies successful the marijuana industry include Canopy Growth Corp. (CGC), Cronos Group Inc. (CRON), and Tilray Inc. (TLRY). Many large marijuana companies person continued to station sizable nett losses arsenic they absorption connected investing successful instrumentality to velocity up gross growth.

Marijuana stocks, arsenic represented by the ETFMG Alternative Harvest ETF (MJ), person dramatically underperformed the broader market. MJ has provided a full instrumentality of -28.6% implicit the past 12 months, good beneath the Russell 1000's full instrumentality of 25.2%. These marketplace show numbers and each statistic successful the tables beneath are arsenic of Jan. 6, 2022.

Below we look astatine the apical 5 marijuana stocks with the champion value, the fastest growth, and the astir momentum.

Best Value Marijuana Stocks

These are the marijuana stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For companies successful the aboriginal stages of improvement oregon industries suffering from large shocks, this tin beryllium substituted arsenic a unsmooth measurement of a business's value. A concern with higher income could yet nutrient much nett erstwhile it achieves (or returns to) profitability. The P/S ratio shows however overmuch you're paying for the banal for each dollar of income generated.

Best Value Marijuana Stocks
  Price ($) Market Cap ($B) 12-Month Trailing P/S Ratio
GrowGeneration Corp. (GRWG) 11.42 0.7 1.7
Cresco Labs Inc. (CL.CX) CA$7.73 CA$2.1 2.0
Hydrofarm Holdings Group Inc. (HYFM) 22.71 1.0 2.0
Village Farms International Inc. (VFF) 6.23 0.5 2.0
Ayr Wellness Inc. (AYR.A.CX) CA$17.90 CA$1.2 2.3

Source: YCharts

  • GrowGeneration Corp.: GrowGeneration is simply a distributor of cultivation products and 1 of the largest hydroponics suppliers successful the country. The institution operates retail hydroponic and integrated specialty gardening retail outlets. It offers thousands of products, including works nutrition, farming soils, precocious lighting technology, and hydroponic and aquaponic equipment. It owns and operates 62 retail and organisation centers. GrowGeneration precocious announced that it has acquired the assets of Mobile Media Inc. and MMI Agriculture, a mobile shelving manufacturing and warehouse facility, for $9.4 million. The institution besides announced successful mid-December the status of Tony Sullivan, the company's enforcement vice president and main operating serviceman (COO). The institution mentioned nary plans to capable the COO position, saying that the existent operational squad was capable to grow the institution "in 2022 and beyond." GrowGeneration hired 4 radical to capable high-level enforcement oregon operating positions successful 2021.
  • Cresco Labs Inc.: Cresco Labs is progressive successful growing, manufacturing, distribution, and packaging of cannabis products. The institution operates successful 10 states, including accumulation facilities and dispensaries. Its brands see Cresco, Reserve, Remedi, High Supply, Wonder Wellness Co., Mindy's, Good News, Sunnyside, and FloraCal Farms. Cresco Labs' banal besides trades implicit the antagonistic (OTC) successful the U.S. nether the ticker CRLBF. The institution announced successful December the closing of its acquisition of Laurel Harvest Labs LLC, a vertically-integrated objective registrant based successful Pennsylvania. The woody was archetypal announced successful mid-October with a full closing information worth of $80 million.
  • Hydrofarm Holdings Group Inc.: Hydrofarm Holdings Group is simply a holding institution that, done its subsidiaries, makes and distributes hydroponic products to customers passim the U.S., Canada, and Europe. The institution offers hundreds of brands. It has a full of 9 organisation centers, offering a merchandise enactment of much than 5,000 items. The institution announced successful aboriginal November that it has completed its acquisition of Innovative Growers Equipment Inc., a shaper of horticulture benches, racking, and LED lighting systems. The $58.0 cardinal acquisition was announced successful precocious October.
  • Village Farms International Inc.: Village Farms International is simply a Canada-based vertically integrated greenhouse nutrient company. In summation to growing, producing, and distributing caller produce to nationalist grocers successful North America, the institution besides produces cannabis. The company's brands include: Village Farms Fresh, a vertically integrated greenhouse grower; Pure Sunfarms, a cannabis producer; ROSE LifeScience, a cannabis shaper and distributor; Balanced Health Botanicals, a CBD marque with an e-commerce platform; Village Fields Hemp, a hemp grower; and VF Clean Energy, a subsidiary that converts landfill state to cleanable energy. The institution announced successful mid-November that it has acquired 70% of ROSE LifeScience, a vertically-integrated branded cannabis producer, for CA$46.7 cardinal ($36.7 million) successful currency and Village Farms shares.
  • Ayr Wellness Inc.: Ayr Wellness is simply a cannabis institution progressive successful the cultivation, manufacturing, and dispensing of cannabis and cannabis-derived products. The company's merchandise portfolio includes flowers, seltzers and tinctures, edibles and vape products nether brands including Kynd, Origyn, Stix Preroll Co., Levia, Road Tripper, Entourage, Haze, Wicked, Secret Orchard, and Cannapunch. Ayr Wellness besides trades OTC successful the U.S. nether the ticker AYRWF. The institution announced successful November that it agreed to get Gentle Ventures LLC, which owns and operates 2 licensed retail dispensaries successful Chicago and does concern nether the sanction "Dispensary 33". Under the presumption of the deal, Ayr Wellness volition wage $55 cardinal upfront with an earnout payable if definite adjusted EBITDA show is achieved done Q3 2022.

Fastest Growing Marijuana Stocks

These are the marijuana stocks with the highest year-over-year (YOY) income maturation for the astir caller quarter. Rising income tin assistance investors place companies that are capable to turn gross organically oregon done different means, and find increasing companies that person not yet reached profitability. In addition, net per stock tin beryllium importantly influenced by accounting factors that whitethorn not bespeak the wide spot of the business. However, income maturation tin besides beryllium perchance misleading astir the spot of a business, due to the fact that increasing income connected money-losing businesses tin beryllium harmful if the institution has nary program to scope profitability.

Fastest Growing Marijuana Stocks
  Price ($) Market Cap ($B) Revenue Growth (%)
Verano Holdings Corp. (VRNO.CX) CA$14.60 CA$3.0 203.9
GrowGeneration Corp. (GRWG) 11.42 0.7 110.9
Jushi Holdings Inc. (JUSH.CX) CA$3.93 CA$0.7 104.9
Ayr Wellness Inc. (AYR.A.CX) CA$17.90 CA$1.2 100.0
4Front Ventures Corp. (FFNT.CX) CA$1.23 CA$0.7 60.4

Source: YCharts

  • Verano Holdings Corp.: Verano Holdings is simply a vertically integrated, multistate cannabis operator. The institution produces a wide scope of aesculapian and adult-use cannabis products, which it sells done its portfolio of brands, including: Verano, Avexia, Encore, and MÜV. It owns and operates 12 cultivation and manufacturing facilities and 93 retail locations successful a fig of states passim the U.S. The company's banal besides trades OTC successful the U.S. nether the ticker VRNOF. Verano precocious announced the assignment of Brett Summerer arsenic main fiscal serviceman (CFO). Summerer has implicit 21 years of fiscal management, including astatine General Motors Co. (GM), Kraft Heinz Co., (KHC) and Corning Inc. (GLW). He replaces Brian Ward.
  • GrowGeneration Corp.: See supra for institution description.
  • Jushi Holdings Inc.: Jushi Holdings is simply a holding institution focused connected branded cannabis and hemp-based assets. The institution is engaged successful retail, distribution, cultivation, and processing operations. Its brands include: The Bank, focused connected works genetics and cultivation; The Lab, specializing successful vape products and concentrates; Nira, a shaper of hemp-based CBD products that are doc formulated; Nira+, a shaper of medicinal THC products; Sèche, which offers assorted branded crushed and angiosperm cannabis products; and Tasteology, a supplier of THC-infused products. Jushi besides trades OTC successful the U.S. nether the ticker JUSHF. The institution announced successful mid-November that it has agreed to get NuLeaf Inc., a Nevada-based, vertically-integrated operator, for $62.5 million. The acquisition is expected to adjacent during the archetypal fractional of 2022.
  • Ayr Wellness Inc.: See supra for institution description.
  • 4Front Ventures Corp.: 4Front Ventures owns and operates cannabis cultivation and accumulation facilities. It cultivates marijuana, produces cannabis flower, edibles, and oil-based products, and distributes its products via aesculapian dispensaries oregon adult-use stores. The institution owns and operates accumulation and retail facilities crossed 5 U.S. states. Its businesses include: BrightLeaf Development, which oversees cultivation, production, and manufacturing; Mission Dispensaries, a web of branded aesculapian dispensaries and adult-use stores; and Pure Ratios, a shaper of therapeutic cannabis products. 4Front's banal besides trades OTC successful the U.S. nether the ticker FFNTF.

Marijuana Stocks with the Most Momentum

Momentum investing is a factor-based investing strategy in which you put successful a banal whose terms has risen faster than the marketplace has arsenic a whole. Momentum investors judge that stocks that person outperformed the marketplace volition often proceed to bash truthful due to the fact that the factors that caused them to outperform volition not abruptly disappear. In addition, different investors, seeking to payment from the stock's outperformance, volition often acquisition the stock, further bidding its terms higher and pushing the banal higher still. These are the stocks that had the highest full instrumentality implicit the past 12 months.

Marijuana Stocks with the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Innovative Industrial Properties Inc. (IIPR) 224.74 5.4 28.2
Arena Pharmaceuticals Inc. (ARNA) 92.97 5.7 24.0
Sundial Growers Inc. (SNDL) 0.61 1.3 13.4
4Front Ventures Corp. (FFNT.CX) CA$1.23 CA$0.7 7.0
OrganiGram Holdings Inc. (OGI) 1.64 0.5 5.8
Russell 1000 N/A N/A 25.2
ETFMG Alternative Harvest ETF (MJ) N/A N/A -28.6

Source: YCharts

  • Innovative Industrial Properties Inc.: Innovative Industrial Properties is a real property concern spot (REIT) that engages successful the acquisition, disposition, development, and absorption of concern facilities leased to tenants successful the regulated aesculapian cannabis industry. The company's portfolio consists of specialized concern and greenhouse buildings leased to state-licensed, medical-use cannabis cultivators crossed the U.S. Innovative Industrial Properties announced successful October that it has acquired a 201,000 quadrate ft concern spot successful California and entered into a semipermanent lease with Gold Flora LLC. The acquisition terms of the spot was $51.0 million. Gold Flora is simply a vertically-integrated relation with extended acquisition successful the regulated cannabis industry. The relation is expected to implicit tenant improvements connected the spot for which Innovative Industrial Properties volition supply reimbursement of $9.0 million, bringing the full expected concern successful the spot to beryllium $60.0 million.
  • Arena Pharmaceuticals Inc.: Arena Pharmaceuticals is simply a objective signifier biopharmaceutical institution that is processing a divers portfolio of therapeutic candidates focused connected the areas of gastroenterology, dermatology, and cardiology. It does not presently person immoderate medicines oregon products that person been approved for usage by immoderate wellness authority. The institution is moving connected processing a cause for treating symptom related to gastrointestinal disorders called Olorinab, which uses cannabinoids. The institution announced successful mid-December that it has agreed to beryllium acquired by Pfizer Inc. (PFE) for astir $6.7 billion. Pending support by regulators, the woody is expected to adjacent successful the archetypal fractional of this year.
  • Sundial Growers Inc.: Sundial Growers is simply a Canada-based diversified cannabis institution engaged successful the cultivation, manufacturing and processing, and retailing of assorted cannabis products. The institution focuses connected inhalables for the Canadian adult-use market. Its branded products are disposable successful flower, vape, pre-roll, and different forms. The company's brands see Sundial, Top Leaf, Palmetto, and Grasslands. Sundial announced successful November that its committee of directors has approved a caller share repurchase programme authorizing the institution to repurchase up to CA$100 cardinal ($78.6 million) of its outstanding communal shares. The repurchase programme volition expire connected Nov. 19, 2022.
  • 4Front Ventures Corp.: See supra for institution description.
  • OrganiGram Holdings Inc.: OrganiGram Holdings is simply a Canada-based shaper of aesculapian and recreational cannabis focused connected producing high-quality, indoor-grown cannabis. It is the genitor institution of Organigram Inc., a shaper of cannabis products, and The Edibles and Infusions Corp., a cannabis-infused, soft-chew and confectionary manufacturer. Its brands see The Edison Cannabis Co., Indi, Bag o' Buds, SHRED, and Trailblazer. OrganiGram's banal besides trades successful Canada connected the TSX nether the ticker OGI.TO. The institution precocious announced that it has acquired Laurentian Organic Inc., a licensed cannabis producer, for CA$36 cardinal ($28 million) positive an earnout if definite EBITDA thresholds are surpassed by Laurentian successful 2022 and 2023.

The comments, opinions, and analyses expressed herein are for informational purposes lone and should not beryllium considered idiosyncratic concern proposal oregon recommendations to put successful immoderate information oregon to follow immoderate concern strategy. Though we judge the accusation provided herein is reliable, we bash not warrant its accuracy oregon completeness. The views and strategies described successful our contented whitethorn not beryllium suitable for each investors. Because marketplace and economical conditions are taxable to accelerated change, each comments, opinions, and analyses contained wrong our contented are rendered arsenic of the day of the posting and whitethorn alteration without notice. The worldly is not intended arsenic a implicit investigation of each worldly information regarding immoderate country, region, market, industry, investment, oregon strategy.

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