As cannabis licenses continue to become available to businesses seeking to operate across the states legally, the marijuana industry’s value may double in value by 2025. The growing marijuana business opportunities in the U.S. have investors looking to get shares of this booming industry.
While pot stocks have potentially high rewards for investors, it remains a high-risk investment. You need to understand which stocks offer the best return on investment. Some of the best pot stocks to invest in are those that post high value, show fast growth, and have promising momentum. The following companies exhibit at least one of these three factors, making them the top marijuana stocks in the current cannabis industry.
High Tide, Inc.
High Tide is the best value and among the fastest-growing marijuana stocks. Best value marijuana stocks have the lowest 12-month trailing price-to-sales (P/S) ratio, which can act as a rough measurement of a business’s value during its early development stages. Meanwhile, the fastest-growing marijuana stocks rely on revenue growth and earnings-per-share (EPS) growth.
High Tide stocks prices are CA$10.30 with a market cap of CA$0.5 billion. These figures give the company a 12-month trailing P/S ratio of 2.2, the lowest among the other best value marijuana stocks. This P/S ratio means you would pay CA$10.30 for each dollar of sales this company generates.
In terms of the company being among the fastest-growing, High Tide posted 179.4% revenue growth. However, it posted a negative EPS percentage in the latest quarter. Only one company in the last quarter reported positive EPS growth. Regardless, High Tide remains among the fastest-growing marijuana stocks based on its revenue growth exceeding a hundred percent.
Based in Canada, High Tide operates a cannabis retail chain and engages in global manufacturing and distribution of smoking accessories. This company’s brands include:
- Canna Cabana
- META Cannabis
- Smoke Cartel
The company will acquire the Daily High Club, an online marijuana accessories retailer based in the U.S., which would boost High Tide’s e-commerce presence in America.
Cresco Labs, Inc.
Cresco Labs is another company among the best value and fastest-growing pot stocks on the market. Its price is CA$13.88 with a market cap of CA$3.4 and a 12-month trailing P/S ratio of 3.9. At the same time, it reported a revenue growth percentage of 153.6 over the most recent quarter.
Cresco Labs has at least one dispensary in ten states. The company holds 44 retail cannabis licenses and owns production facilities. This consumer-packaged cannabis products company grows, manufactures, and distributes its own cannabis products. Its brands include:
- High Supply
- Wonder Wellness Co.
GrowGeneration Corp has marijuana stocks with the most momentum, with a 12-month trailing total return of 514.9%. Stocks with the most momentum have the highest total return over the last 12 months. These are the stocks with prices that rose faster than the entire market. Investors who base their investments on momentum believe that the stocks will continue to outperform the market as a whole.
GrowGeneration stock prices are US$43.41 with a market cap of US$2.6 billion. At the same time, GrowGeneration’s revenue growth was 172.9%. This value makes the company’s stocks among the fastest growing on the market. GrowGeneration Corp’s recent growth calculation is impossible because the company posted a negative to positive EPS growth.
GrowGeneration distributes agricultural products and specializes in retail hydroponic and organic gardening retail. It operates 55 retail and distribution centers, making it one of the largest suppliers of hydroponics equipment in America. This company offers thousands of products of the following types:
- Plant nutrition
- Farming soils
- Advanced lighting technology
- Hydroponic equipment
- Aquaponic equipment
Jushi Holdings, Inc.
Jushi Holdings is another company with the fastest-growing pot stocks with the most momentum. Jushi Holdings stocks cost CA$6.99 with a market cap of CA$1.2 billion. The company had a negative EPS in the recent quarter, but its revenue growth was 355.4%. At the same time, its 12-month trailing total return was 288.3%.
Jushi Holdings deals in retail, distribution, cultivation, and processing of branded cannabis and hemp-based assets. Among its brands are:
- The Bank: plant genetics and cultivation specialists
- The Lab: vape products and concentrates specialists
- Nira: hemp-based CBD product makers
- Nira+: medicinal THC product producers
- Seche: ground and flower cannabis product sellers
- Tasteology: THC-infused product providers
Innovative Industrial Properties, Inc.
Innovative Industrial Properties is the only cannabis company that had a positive EPS percentage in the last quarter. Its stock price is US$192.24, with a market cap of US$4.7 billion. Its EPS growth was 45.8%, and its revenue growth was 103%.
This company acquires, develops, builds, and manages industrial facilities that medical cannabis industry companies use. Innovative Industrial Properties operates like a real estate investment trust, meaning it must distribute 90% of its taxable income through dividends among its stockholders.
Conclusion: What Are the Best Pot Stocks?
The best pot stocks based on recent data include:
- High Tide, Inc.
- Cresco Labs, Inc.
- GrowGeneration Corp
- Jushi Holdings, Inc.
- Innovative Industrial Properties, Inc.
These companies have presented favorable data based on the recent quarter and the last 12 months. These figures put them at the top of the best value and fastest-growing marijuana stocks with the most momentum.
The market landscape will continue to shift with the passage of new cannabis laws. Keeping up with cannabis industry news will be necessary if you intend to invest in these high-risk yet potentially highly rewarding marijuana stocks. TNM News covers the marijuana news you need to stay on top of the pot stocks game. Visit our page for the latest on the cannabis industry.