Top Marijuana Stocks on the NASDAQ for April 2020

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The marijuana industry includes companies directly related to the research, development, and distribution of cannabis products, as well as companies which indirectly support these operations. As a growing number of U.S. states and countries around the world have legalized marijuana in one or more forms, traditional stock market indices like the Nasdaq have begun to include more companies from the marijuana industry. Now, companies like Arena Pharmaceuticals, Inc. (ARNA) and OrganiGram Holdings, Inc. (OGI) are being traded on the Nasdaq and other U.S. exchanges rather than through the over-the-counter market. Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), dramatically underperformed the S&P 500 in the past year. MJ registered a total return of -69.3%, while the S&P 500 posted a total return of -10.2%.

Below, we’ll examine the top three Nasdaq-listed stocks in the marijuana industry for best value, fastest earnings growth, and most momentum.

Best Value Marijuana Stocks

These are the marijuana stocks with the lowest 12-month trailing price-to-sales (P/S) ratio. For young companies that have not reached profitability, this can provide an idea of how much business you’re getting for each dollar invested.

Best Value Marijuana Stocks
  Price ($) Market Cap ($B) 12-Month Trailing P/S Ratio
Amyris Inc. (AMRS) 2.15 0.4 1.4
Tilray Inc. (TLRY) 4.02 0.4 2.4
GW Pharmaceuticals PLC (GWPH) 87.66 2.7 8.8
  • Amyris Inc.: Amyris produces a variety of chemical products for use in cosmetics, pharmaceuticals, and as flavors and fragrances. Total revenue for Q4 2019 was $40.5 million, a 148% increase year-over-year (YOY).
  • Tilray Inc.: Based in British Columbia, Canada, Tilray is a pharmaceutical company that develops a range of cannabis-based medicines, drugs, and oils for worldwide distribution.
  • GW Pharmaceuticals PLC: GW Pharmaceuticals is biopharmaceutical company based in the U.K. This company researches and develops cannabis-based medical treatments for cancer pain, Multiple Sclerosis, and neuropathic pain.

Fastest Growing Marijuana Stocks

These are the Nasdaq-listed marijuana stocks with the highest YOY sales growth for the most recent quarter. Rising sales show that a company’s business is growing. This is often used to measure growth of young companies that have not yet reached profitability.

Fastest Growing Marijuana Stocks
  Price ($) Market Cap ($B) Revenue Growth (%)
Cronos Group Inc. (CRON)
 
5.47 1.9 234.3
Tilray Inc. (TLRY) 4.02 0.4 202.2
Amyris Inc. (AMRS) 2.15 0.4 147.6
  • Cronos Group Inc.: Cronos Group is a Canadian cannabis company that produces and distributes medical marijuana products and cannabis oil. On March 2, the company announced that it had made a filing with the U.S. Securities and Exchange Commission (SEC) in order to receive a 15-day extension on the deadline for its filing of a Form 10-K for FY 2019.
  • Tilray Inc.: See company description above.
  • Amyris Inc.: See company description above.

Marijuana Stocks with the Most Momentum

These are the marijuana stocks on the Nasdaq that declined the least in their sector over the last 12 months amid the industry’s steep overall decline.

Marijuana Stocks with the Most Momentum
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Amyris Inc. (AMRS) 2.15 0.4 -4.9
Cara Therapeutics Inc. (CARA) 12.21 0.6 -33.3
GW Pharmaceuticals PLC (GWPH) 87.66 2.7 -48.1
S&P 500 (SPY) -10.2
ETFMG Alternative Harvest ETF (MJ) -69.3
  • Amyris Inc.: See company description above.
  • Cara Therapeutics Inc.: Cara Therapeutics is a clinical-stage biotechnology company that develops and commercializes new chemical entities for indications of pain and pruritus (itching), among other conditions. For FY 2019, Cara Therapeutics reported revenue of $19.9 million, an increase of 47.4% YOY.
  • GW Pharmaceuticals PLC: See company description above.

Source: Investopedia