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While much of GrowGeneration’s business caters to cannabis growers, the company also sells to other types of gardeners. GrowGeneration has benefitted from the COVID-19 pandemic due to the surge in customers pursuing organic gardening at home.

Impact of COVID-19 on marijuana stocks

Jazz Pharmaceuticals (NASDAQ:JAZZ) acquired the cannabis-focused biotech company GW Pharmaceuticals in May 2021. GW’s drug Epidiolex is the first cannabis-based medicine to be approved by the U.S. Food and Drug Administration (FDA). Epidiolex, which treats two rare forms of childhood epilepsy, is generating sales that are routinely surpassing expectations. While new patient starts for Epidiolex slowed slightly with the COVID-19 pandemic, the company has continued to deliver strong revenue growth.

Source: Business Wire

The COVID-19 pandemic disrupted IIP’s business somewhat, with three tenants receiving temporary rent deferrals. The ancillary company has still grown phenomenally during the pandemic and is highly profitable. Because the company is organized as a real estate investment trust (REIT), IIP returns at least 90% of its taxable income to shareholders.

The marijuana industry is expected to double in value by 2025, and many investors are seeking to profit. As states and entire countries decriminalize or legalize cannabis and/or its components, there are growing opportunities for entrepreneurs and existing companies.

These are the marijuana stocks on the Nasdaq that had the highest total return over the last 12 months.

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.

Here are the top 3 marijuana stocks on the Nasdaq with the best value, the fastest growth, and the most momentum.

Fastest Growing Marijuana Stocks on the Nasdaq

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 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.

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.

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.

The stocks on this watchlist are weighted equally at the time they were added.

This is a curated list, powered by Yahoo Finance’s algorithm and intelligence from our millions of users as well as the Yahoo Finance editorial team. The list covers companies in horticulture, pharmaceutical research and ancillary businesses. We will continue to add names as corporations invest and pivot into the space.

How do we pick these stocks?

How are these weighted?

Global spending on legal cannabis worldwide will hit $57 billion in a decade, according to Arcview Market Research and BDS Analytics. Driven by the legalization of recreational and medical cannabis and the increasing demand for both, legal cannabis revenue in the U.S. is projected to hit $23.4 billion by 2022. Yahoo Finance is now tracking the major players in the cannabis industry.

To learn what every company on this list is doing that involves cannabis, read this story.