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Top Marijuana Stocks for February 2022

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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.

Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have dramatically underperformed the broader market. MJ has provided a total return of -48.7% over the past 12 months, well below the Russell 1000’s total return of 13.5%. These market performance numbers and all statistics in the tables below are as of Jan. 24, 2022.

Below we look at the top five marijuana stocks with the best value, the fastest growth, and the most momentum.

Best Value Marijuana Stocks

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

Price ($)
Market Cap ($B)
12-Month Trailing P/S Ratio
GrowGeneration Corp. (GRWG)
8.08
0.5
1.2
Village Farms International Inc. (VFF)
5.29
0.5
1.7
Hydrofarm Holdings Group Inc. (HYFM)
19.83
0.9
1.7
Cresco Labs Inc. (CL.CX)
CA$7.70
CA$2.1
2.0
Ayr Wellness Inc. (AYR.A.CX)
CA$19.90
CA$1.3
2.6

Source: YCharts

GrowGeneration Corp.: GrowGeneration is a distributor of agricultural products and one of the largest hydroponics suppliers in the country, operating retail hydroponic and organic specialty gardening retail outlets. Though GrowGeneration is not a pure-play cannabis company, many of its products are used in cannabis cultivation. It sells thousands of products, including plant nutrients, farming soils, advanced lighting technology, and hydroponic and aquaponic equipment. It owns and operates 62 retail and distribution centers. GrowGeneration recently announced that it has acquired for $9.4 million the assets of Mobile Media Inc. and MMI Agriculture, a mobile shelving manufacturing and warehouse facility. The company also announced in mid-December the retirement of Tony Sullivan, the company’s executive vice president and chief operating officer (COO). The company mentioned no plans to fill the COO position, saying that the current operational team was sufficient to expand the company “in 2022 and beyond.” GrowGeneration hired four people to fill high-level executive or operating positions in 2021.
Village Farms International Inc.: Village Farms International is a Canada-based vertically integrated greenhouse produce company. The company produces cannabis in addition to growing, producing, and distributing fresh produceto national grocers in North America. The company’s brands include: Village Farms Fresh, a vertically integrated greenhouse grower; Pure Sunfarms, a cannabis producer; ROSE LifeScience, a cannabis producer and distributor; Balanced Health Botanicals, a CBD brand with an e-commerce platform; Village Fields Hemp, a hemp grower; and VF Clean Energy, a subsidiary that converts landfill gas to clean energy. The company announced in mid-November that it has acquired 70% of ROSE LifeScience, a vertically-integrated branded cannabis producer, for CA$46.7 million ($37.0 million) in cash and Village Farms shares.
Hydrofarm Holdings Group Inc.: Hydrofarm Holdings Group is a holding company that, through its subsidiaries, makes and distributes hydroponic products to customers throughout the U.S., Canada, and Europe. The company offers hundreds of brands. It has a total of nine distribution centers, offering a product line of more than 5,000 items. The company announced in early November that it has completed its acquisition of Innovative Growers Equipment Inc., a manufacturer of horticulture benches, racking, and LED lighting systems. The $58.0 million acquisition was announced in late October.
Cresco Labs Inc.: Cresco Labs grows, manufactures, distributes, and packages cannabis products. The company operates in 10 states, including production facilities and dispensaries. Its brands include Cresco, Reserve, Remedi, High Supply, Wonder Wellness Co., Mindy’s, Good News, Sunnyside, and FloraCal Farms. Cresco Labs’ stock also trades over the counter (OTC) in the U.S. under the ticker CRLBF. The company recently announced that it has terminated its agreement to purchase Blair Wellness LLC, a Maryland-based medical cannabis dispensary. Cresco Labs said that the agreement was terminated because of the failure to meet certain closing conditions. There were no termination fees associated with the transaction, which had originally been expected to close in Q4 2021.
Ayr Wellness Inc.: Ayr Wellness is a cannabis company involved in the cultivation, manufacturing, and dispensing of cannabis and cannabis-derived products. The company’s product portfolio includes flowers, seltzers and tinctures, edibles and vape products under brands including Kynd, Origyn, Stix Preroll Co., Levia, Road Tripper, Entourage, Haze, Wicked, Secret Orchard, and Cannapunch. Ayr Wellness also trades OTC in the U.S. under the ticker AYRWF. The company announced in November that it agreed to acquire Gentle Ventures LLC, which owns and operates two licensed retail dispensaries in Chicago and does business under the name “Dispensary 33”. Under the terms of the deal, Ayr Wellness will pay $55 million upfront with an earnout payable if certain adjusted EBITDA performance is achieved through Q3 2022.

Fastest Growing Marijuana Stocks

These are the marijuana stocks 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.

Fastest Growing Marijuana Stocks

Price ($)
Market Cap ($B)
Revenue Growth (%)
GrowGeneration Corp. (GRWG)
8.08
0.5
110.9
Verano Holdings Corp. (VRNO.CX)
CA$13.91
CA$2.8
106.0
Jushi Holdings Inc. (JUSH.CX)
CA$4.60
CA$0.8
104.9
Ayr Wellness Inc. (AYR.A.CX)
CA$19.90
CA$1.3
100.0
Village Farms International Inc. (VFF)
5.29
0.5
68.3

Source: YCharts

GrowGeneration Corp.: See above for company description.
Verano Holdings Corp.: Verano Holdings is a vertically integrated, multistate cannabis operator. The company produces a wide range of medical and adult-use cannabis products, which it sells through its portfolio of brands, including: Verano, Avexia, Encore, and M?V. It owns and operates 12 cultivation and manufacturing facilities and 93 retail locations in a number of states throughout the U.S. The company’s stock also trades OTC in the U.S. under the ticker VRNOF. Verano announced in early January the appointment of Brett Summerer as chief financial officer (CFO). Summerer has over 21 years of financial management experience, including at General Motors Co., Kraft Heinz Co., and Corning Inc. He replaces Brian Ward.
Jushi Holdings Inc.: Jushi Holdings is a holding company focused on branded cannabis and hemp-based assets. The company is engaged in retail, distribution, cultivation, and processing operations. Its brands include: The Bank, focused on plant genetics and cultivation; The Lab, specializing in vape products and concentrates; Nira, a maker of hemp-based CBD products that are physician formulated; Nira+, a producer of medicinal THC products; S?che, which offers various branded ground and flower cannabis products; and Tasteology, a provider of THC-infused products. Jushi also trades OTC in the U.S. under the ticker JUSHF. The company announced in mid-November that it has agreed to acquire NuLeaf Inc., a Nevada-based, vertically-integrated operator, for $62.5 million. The acquisition is expected to close during the first half of 2022.
Ayr Wellness Inc.: See above for company description.
Village Farms International Inc.: See above for company description.

Marijuana Stocks with the Most Momentum

Momentum investing is a factor-based investing strategy in which you invest in a stock whose price has risen faster than the market has as a whole. Momentum investors believe that stocks that 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 past 12 months.

Marijuana Stocks with the Most Momentum

Price ($)
Market Cap ($B)
12-Month Trailing Total Return (%)
Arena Pharmaceuticals Inc. (ARNA)
89.95
5.5
15.8
Innovative Industrial Properties Inc. (IIPR)
194.63
4.7
2.9
OrganiGram Holdings Inc. (OGI)
1.46
0.5
-15.1
Sundial Growers Inc. (SNDL)
0.46
0.9
-28.7
Green Thumb Industries Inc. (GTII.CX)
CA$23.71
CA$5.4
-39.4
Russell 1000
N/A
N/A
13.5
ETFMG Alternative Harvest ETF (MJ)
N/A
N/A
-48.7

Source: YCharts

Arena Pharmaceuticals Inc.: Arena Pharmaceuticals is a clinical stage biopharmaceutical company that is developing a diverse portfolio of therapeutic candidates focused on the areas of gastroenterology, dermatology, and cardiology. It does not currently have any medicines or products that have been approved for use by regulators. The company is working on developing a drug for treating pain related to gastrointestinal disorders called Olorinab, which uses cannabinoids. The company announced in mid-December that it has agreed to be acquired by Pfizer Inc. for approximately $6.7 billion. Pending approval by regulators, the deal is expected to close in the first half of this year.
Innovative Industrial Properties Inc.: Innovative Industrial Properties is a real estate investment trust (REIT) that engages in the acquisition, disposition, development, and management of industrial facilities leased to tenants in the regulated medical cannabis industry. The company’s portfolio consists of specialized industrial and greenhouse buildings leased to state-licensed, medical-use cannabis cultivators across the U.S. Innovative Industrial Properties announced in mid-December that it has acquired a portfolio of 27 properties in Colorado, Pennsylvania, and North Dakota that are 100% leased for use as regulated cannabis facilities. The aggregate purchase price of the properties was approximately $72.7 million.
OrganiGram Holdings Inc.: OrganiGram Holdings is a Canada-based producer of medical and recreational cannabis focused on producing high-quality, indoor-grown cannabis. It is the parent company of Organigram Inc., a producer of cannabis products, and The Edibles and Infusions Corp., a cannabis-infused, soft-chew and confectionary manufacturer. Its brands include The Edison Cannabis Co., Indi, Bag o’ Buds, SHRED, and Trailblazer. OrganiGram’s stock also trades in Canada on the TSX under the ticker OGI.TO. The company recently announced that it has acquired Laurentian Organic Inc., a licensed cannabis producer, for CA$36 million ($29 million) plus an earnout if certain EBITDA thresholds are surpassed by Laurentian in 2022 and 2023.
Sundial Growers Inc.: Sundial Growers is a Canada-based diversified cannabis company engaged in the cultivation, manufacturing and processing, and retailing of various cannabis products. The company focuses on inhalables for the Canadian adult-use market. Its branded products are available in flower, vape, pre-roll, and other forms. The company’s brands include Sundial, Top Leaf, Palmetto, and Grasslands. Sundial announced in November that its board of directors has approved a new share repurchase program authorizing the company to repurchase up to CA$100 million ($79 million) of its outstanding common shares. The repurchase program will expire on Nov. 19, 2022.
Green Thumb Industries Inc.: Green Thumb Industries is a consumer-packaged cannabis products company and retailer. It manufactures and distributes a variety of branded cannabis products through its portfolio of brands, including Beboe, Dogwalkers, Dr. Solomon’s, Good Green, incredibles, and Rythm. The company also owns and operates retail cannabis stores called Rise. Green Thumb has 16 manufacturing facilities and scores of retail locations, with operations across 14 U.S. markets. The company’s stock also trades OTC in the U.S. under the ticker GTBIF. Green Thumb Industries announced in late December that it has acquired LeafLine Industries, a Minnesota-based licensed cannabis cultivator. The acquisition provides Green Thumb with access to patients within the Minnesota medical cannabis market. Financial terms of the transaction were not disclosed.

The comments, opinions, and analyses expressed herein are for informational purposes only and should not be considered individual investment advice or recommendations to invest in any security or to adopt any investment strategy. Though we believe the information provided herein is reliable, we do not warrant its accuracy or completeness. The views and strategies described in our content may not be suitable for all investors. Because market and economic conditions are subject to rapid change, all comments, opinions, and analyses contained within our content are rendered as of the date of the posting and may change without notice. The material is not intended as a complete analysis of every material fact regarding any country, region, market, industry, investment, or strategy.

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