Here are the top three marijuana stocks on the Nasdaq with the best value, fastest growth, and most momentum.
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 the 2020 U.S. presidential election.
Best Value Marijuana Stocks on the Nasdaq
These are the marijuana stocks on the Nasdaq that had the highest total return over the past 12 months.
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), an exchange-traded fund, have significantly underperformed the broader market. MJ has provided a total return of -21.7% over the past 12 months, well below the benchmark Russell 1000 Index’s total return of 26.5%. These performance figures and all statistics in the tables below are as of Dec. 31, 2021.
GRWG, HYFM, and OGI are top for value, growth, and momentum, respectively
These are the top marijuana stocks on the Nasdaq as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-over-year (YOY) percentage revenue growth and most recent quarterly YOY earnings-per-share (EPS) growth. Both sales and earnings are critical factors in the success of a company. Therefore, ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or restructuring costs) that may make one figure or the other unrepresentative of the business in general. Companies with quarterly EPS or revenue growth of more than 2,500% were excluded as outliers.
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.
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.
The stocks on this watchlist are weighted equally at the time they were added.
How do we pick these stocks?
How are these weighted?