These are the marijuana stocks on the Nasdaq with the highest year-over-year (YOY) sales growth for the most recent quarter. Rising sales can help investors identify companies that are able to grow revenue organically or through other means, and find growing companies that have not yet reached profitability. In addition, earnings per share can be significantly influenced by accounting factors that may not reflect the overall strength of the business. However, sales growth can also be potentially misleading about the strength of a business, because growing sales on money-losing businesses can be harmful if the company has no plan to reach profitability.
These are the marijuana stocks on the Nasdaq that had the highest total return over the last 12 months.
The marijuana industry consists of companies directly related to the research, development, and distribution of cannabis products, as well as companies that indirectly support these operations. Traditional stock market indices such as the Nasdaq continue to include more companies from the marijuana industry as a growing number of regions around the world legalize marijuana. The number of U.S. states that permit marijuana use in some form increased to 36 after voters in several states approved marijuana legalization initiatives on their ballots in last year’s U.S. presidential election. Some of the Nasdaq-listed marijuana companies include Tilray Inc. (TLRY) and OrganiGram Holdings Inc. (OGI). Many of these companies have managed to maintain revenue growth in spite of the COVID-19 pandemic.
Fastest Growing Marijuana Stocks on the Nasdaq
Here are the top 3 marijuana stocks on the Nasdaq with the best value, the fastest growth, and the most momentum.
These are the marijuana stocks trading on the Nasdaq exchange 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.
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have outperformed the broader market. MJ has provided a total return of 40.0% over the past 12 months, above the Russell 1000’s total return of 37.5%. These performance figures and all statistics in the tables below are as of July 21, 2021.
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 no timeline yet of a date by which all these measures will be fully implemented.
The NASDAQ was the first electronic exchange and has long been synonymous with technology. Given its history, the NASDAQ has long been the preferred exchange for high tech companies, including biotechnology companies, and even the cannabis companies there seem to reflect this with the majority of them operating in the biotech area of the industry.
Although the majority of marijuana stocks trade on Canadian exchanges or over-the-counter, a few are traded on the NASDAQ. Some cannabis stock investors prefer NASDAQ listed stocks due to their increased liquidity, tighter trading spreads and/or an unwarranted fear of the OTC markets.
Background on the NASDAQ
To view marijuana stock profiles for any of the NASDAQ listed cannabis stocks, visit our marijuana stocks database, or use the links embedded in the tickers above. Marijuana stock profiles are complete with in-depth company descriptions as well as custom charts and recent news.
Another perk of NASDAQ listed marijuana stocks is that they are all available to trade commission-free on the Robinhood app.
As the stigma surrounding the cannabis industry subsides, we hope to see more marijuana-related companies up-listing or making their debut on exchanges like the NASDAQ or NYSE.