Below we look at the top five marijuana stocks with the best value, the fastest growth, and 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.
Best Value Marijuana Stocks
Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have dramatically underperformed the broader market. MJ has provided a total return of -28.6% over the past 12 months, well below the Russell 1000’s total return of 25.2%. These market performance numbers and all statistics in the tables below are as of Jan. 6, 2022.
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.
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.
Rapid Therapeutic Science Laboratories, Inc. (OTC: RTSL) is a fully-reporting, early stage, emerging biotech company focused on aerosol delivery of legal cannabinoids to the systemic blood stream though the pulmonary route of administration, which means you inhale it into your lungs. RTSL’s main product is the Rxoid TM metered dose inhaler, which is also known as an MDI. The thing that differentiates RTSL from its competitors is the delivery method of its product. The Rxoid TM MDI shares many similar physical characteristics to an asthma inhaler and works the same way by delivering medication directly to a user’s blood stream through the pulmonary tract. Rxoid TM delivers a safe and effective dosing of hemp CBD, which is easily inhaled, to combat not only pain, but numerous forms of anxiety, including social anxiety disorder (SAD), panic disorder, obsessive-compulsive disorder, GAD, and post-traumatic stress disorder (PTSD). The device features the safest, quality ingredients designed for the fastest acting relief. RTSL markets its Rxoid TM MDI product mainly through pharmacies, physicians, and select distributions chains. You can also buy direct on the Company’s website. If you want to try a Rxoid TM MDI from RTSL, you can order one online at https://www.rxoid.com/product/rxoid-cbd-inhaler/.
Most of the CBD products the average American consumer finds on the shelf are made from hemp. Currently, 47 of the 50 U.S. states, as well as the District of Columbia, have legalized the sale and use of hemp derived CBD products. According to federal law, hemp CBD is 100% legal and cannot contain more than 0.3 percent of THC, which is the compound in the plant most commonly associated with getting a person high. This emerging trend in the CBD market adds up to explosive growth potential for companies like Rapid Therapeutic Science Laboratories, Inc. (OTC: RTSL) , Charlotte’s Web Holdings, Inc. (OTCQX: CWBHF), Tilray (NASDAQ: TLRY), and Curaleaf Holdings (OTCQX: CURLF)
The trend for growth continues as the CBD market could surpass $23.6 billion by 2025
Curaleaf Holdings (OTCQX: CURLF) has a presence in 17 states, owns and operates 57 dispensaries, 15 cultivation sites and 24 processing sites. Curaleaf is the largest national retail dispensary brand in the U.S., as well as a premium mainstream cannabis brand available in multiple states and product formats. Curaleaf offers a complete line of hemp-based CBD products.
On June 22, 2020 Curaleaf Holdings, Inc. announced an amended agreement for its acquisition of GR Companies, Inc. (“Grassroots”), the largest private vertically-integrated multi-state operator in the United States. Under the new mutually agreed and amended terms of the agreement, the principal component of the transaction consideration remains the same at approximately 102.8 million subordinate voting shares of Curaleaf. What had initially been a $75 million cash component of the consideration has been eliminated, while the component of additional Curaleaf subordinate voting shares to be priced at the 10-day volume-weighted average price prior to closing of the transaction has been increased from $40 million to approximately $90.1 million, subject to final adjustment. Accordingly, the total subordinate voting shares consideration for the transaction is expected to be approximately 118.9 million shares.