Here are the top 5 marijuana stocks with the best value, the fastest growth, and the most momentum.
These are the marijuana stocks 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
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have slightly outperformed the broader market. MJ has provided a total return of 36.9% over the past 12 months, above the Russell 1000 index’s total return of 35.0%. These market performance numbers and all statistics in the tables below are as of Aug. 23, 2021.
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.
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.
Let’s begin by focusing on the topic of branding. Why? Much more than simply establishing the look of a consumer good, branding uses the language of design and art direction to instantly tell a story about a given product and the company that produced it.
This unusual cannabis venture makes waves by not being recognized. Say what? The Clear is a cannabis concentrate that’s sometimes sold by the original manufacturer, and sometimes licensed by secondary makers. It’s an innovative—though by no means new—approach to propagating an already popular product through an established licensing structure (one which just so happens to conform to federal cannabis regulations). More than being just a manufacturer, the company offers various forms of support and leasing to up-and-coming manufacturers.
25 Most Recognizable Cannabis Brands: Branding
Even if you haven’t yet heard of it, this secretive cannabis brand is a very major player in California’s recreational cannabis arena. Operating out of a massive facility deep in Los Angeles, THC puts out some 70 signature strains, including its flagship XJ-13. It’s the branding that grabs you, though: Animations and product shots that recall a molecular gastronomy restaurant or the monitors on a luxury space ship.
The joint creation—no pun intended—of international reggae superstar Bob Marley’s estate along with major cannabis equity firm Privateer Holdings, the Marley Natural brand plays off its namesake’s commitment to social justice and environmental protection and restoration projects. It’s a connection that lends credibility to the company’s tasteful, high-end accessories and cannabis products.
No mistaking this up-and-coming cannabis brand’s focus: Cutting-edge, nearly clinical-seeming consumer products that blur the line between plant medicine and science fiction. With products designed for highly specific therapeutic outcomes and a logo that looks suspiciously like a spacecraft or a stealth bomber, Level is a company that is only rising to the top.
The industry feels a lot like craft beer, with everyone churning out similar products and formats and yet it’s the stories told through design that separate the highlights from the lows, no pun intended.
Built by the employees of upscale brand Canndescent, Good was created to be accessible to everyone. Colorful, easy-going and straight-forward, they’ve built a world we can feel, well, pretty, pretty, pretty good about.
Creativity, Curiosity and Wonder.
From sunup to sundown, Aster Farms is ushering in a unique, sustainable cannabis brand that is Japanese-minimalism, Brooklyn-chic and California-conscious at the same time. They’ve designed a unique identity system around strains and function with packaging depicting a sun on the front, and moon on the back.
Kurvana sits at the nexus of nirvana and Kannabis (see what I did there with K? Okay, I’ll stop now). The brand’s belief of transparency, accountability, and professionalism in the cannabis industry lead to a wonderfully nothing-to-hide, cosmetic-inspired aesthetic.