Top Marijuana Stocks on the Nasdaq for April 2022

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.

Nasdaq-listed marijuana companies include Tilray Brands Inc., OrganiGram Holdings Inc., and GrowGeneration Corp. Many of these companies managed to maintain fast revenue growth in spite of the massive disruptions caused by the COVID-19 pandemic.

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 -57.2% over the past 12 months, well below the benchmark Russell 1000 Index’s total return of 8.1%. These performance figures and all statistics in the tables below are as of March 22, 2022.

Here are the top three marijuana stocks on the Nasdaq with the best value, fastest growth, and best performance.

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.

Best Value Marijuana Stocks on the Nasdaq
  Price ($) Market Cap ($B) 12-Month Trailing P/S Ratio
GrowGeneration Corp. (GRWG) 9.52 0.6 1.4
Hydrofarm Holdings Group Inc. (HYFM) 16.39 0.7 1.5
Village Farms International Inc. (VFF) 5.60 0.5 1.7

Source: YCharts

  • GrowGeneration Corp.: GrowGeneration operates retail hydroponic and organic specialty gardening retail outlets. It offers plant nutrition, farming soils, crops, advanced lighting technology, hydroponic and aquaponic equipment, and more. Though GrowGeneration is not a pure-play cannabis company, many of its products are used in cannabis cultivation. In late January, GrowGeneration announced that it acquired Horticultural Rep Group, a specialty marketing and sales organization of horticultural products serving more than 800 retail customers. It generated an estimated $10 million in revenue last year. GrowGeneration said the deal will significantly strengthen its supply chain and also its distribution of private-label products. Terms of the acquisition were not disclosed.
  • Hydrofarm Holdings Group Inc.: Hydrofarm Holdings Group is a manufacturer and distributor of hydroponics equipment and supplies for controlled environment agriculture, including for the cannabis industry. Its products include high-intensity grow lights, climate control solutions, growing media, and more. Hydrofarm Holdings announced in early March financial results for Q4 of its 2021 fiscal year (FY), the three-month period ended Dec. 31, 2021. The company’s net loss widened to $11.0 million from $9.4 million in the year-ago quarter even as net sales rose 26.3% year over year (YOY).
  • Village Farms International Inc.: Village Farms International is a Canada-based agricultural producer. In addition to growing vegetables such as tomatoes, bell peppers, and cucumbers, the company now also produces cannabis.

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.

Fastest Growing Marijuana Stocks on the Nasdaq
  Price ($) Market Cap ($B) Revenue Growth (%)
OrganiGram Holdings Inc. (OGI) 1.57 0.5 64.8
Village Farms International Inc. (VFF) 5.60 0.5 53.7
Cronos Group Inc. (CRON) 3.69 1.4 51.3

Source: YCharts

  • OrganiGram Holdings Inc.: OrganiGram Holdings’ wholly owned subsidiary, OrganiGram Inc., is a Canada-based producer of medical and recreational cannabis. Its major focus is producing indoor-grown cannabis.
  • Village Farms International Inc.: See above for company description.
  • Cronos Group Inc.: Cronos Group is a vertically integrated cannabis company with distribution across five continents. It distributes medical marijuana and cultivates cannabis oil. Cronos Group’s portfolio includes a global wellness platform, adult-use brands, and three hemp-derived CBD brands. The company recently announced the appointment of Mike Gorenstein as chief executive officer (CEO), a role he previously held before becoming executive chairman in September 2020. Gorenstein replaces Kurt Schmidt, who is retiring.

These are the marijuana stocks that had the smallest declines in total return over the past 12 months out of the companies we looked at.

Marijuana Stocks on the Nasdaq With the Best Performance
  Price ($) Market Cap ($B) 12-Month Trailing Total Return (%)
Sundial Growers Inc. (SNDL) 0.58 1.2 -55.0
OrganiGram Holdings Inc. (OGI) 1.57 0.5 -58.5
Village Farms International Inc. (VFF) 5.60 0.5 -59.2
Russell 1000 N/A N/A 14.7
ETFMG Alternative Harvest ETF (MJ) N/A N/A -57.2

Source: YCharts

  • Sundial Growers Inc.: Sundial Growers is a Canada-based cannabis producer. The company produces and distributes cannabis for the adult-use and medical market. It offers dried flower cannabis products in various formats, including pre-rolls, oils, capsules, and more. On March 31, Sundial announced that it had completed the acquisition of Alcanna Inc. Sundial first announced plans to acquire Alcanna in early October 2021 for about CA$346 million ($275 million).
  • OrganiGram Holdings Inc.: See above for company description.
  • Village Farms International Inc.: See above for company description.

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