Top Marijuana Stocks on the NASDAQ for March 2021

The marijuana industry includes 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 like 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 35 after voters in several states approved marijuana legalization initiatives on their ballots in the recent U.S. presidential election. Some of the Nasdaq-listed marijuana companies include Aphria Inc. (APHA) and OrganiGram Holdings Inc. (OGI). Many companies in this emerging industry are posting losses as they invest heavily to focus on rapidly expanding revenue. And many companies have been able to maintain revenue growth in spite of the COVID-19 pandemic.

Marijuana stocks, as represented by the ETFMG Alternative Harvest ETF (MJ), have significantly outperformed the broader market. MJ has provided a total return of 48.9% over the past 12 months, below the Russell 1000’s total return of 21.1%, as of February 23, 2021. All statistics in the tables below are as of February 23.

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

Best Value Marijuana Stocks on the NASDAQ

These are the marijuana stocks on the Nasdaq with the lowest 12-month trailing price-to-sales (P/S) ratio. For young companies that have not reached profitability, this can provide an idea of how much business you’re getting for each dollar invested.

Source: YCharts

• NIC Inc.: NIC is a provider of digital government services. It aids state and local government in providing various Internet-related services to business and citizens across the U.S. One of its technology platforms is designed to help governments regulate the marijuana industry. On February 10, NIC announced that it had entered into a definitive agreement under which Tyler Technologies Inc. (TYL) will acquire all outstanding shares of NIC in an all-cash transaction valued at roughly $2.3 billion. The transaction is expected to close in Q2 2021.
• Village Farms International Inc.: Village Farms International is a Canada-based agricultural producer. In addition to growing standard vegetables like tomatoes, bell peppers, and cucumbers, the company now also produces cannabis.
• OrganiGram Holdings Inc.: Canada-based OrganiGram Holdings is a holding company that, through its subsidiary, acts as a licensed producer of medical marijuana.

Fastest Growing Marijuana Stocks on the NASDAQ

These are the marijuana stocks on the Nasdaq with the highest YOY sales growth for the most recent quarter. Rising sales show that a company’s business is growing. This is often used to measure growth of young companies that have not yet reached profitability.

Source: YCharts

• GrowGeneration Corp.: GrowGeneration is a distributor of agricultural products. The company 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. In February, GrowGeneration has made several acquisitions of grow warehouses and similar entities in local markets throughout the U.S. These include the acquisition of Grow Depot, a two-store chain in Maine; Grow Warehouse, a four-store chain of hydroponic and organic garden stores in Colorado and Oklahoma; and San Diego Hydroponics & Organics, a four-store chain of organic, hydroponic and aquaponics garden centers in California. Terms of the acquisitions were not disclosed in the press releases.
• Cronos Group Inc.: Cronos Group is a Canada-based diversified cannabis company that produces and distributes medical cannabis products as well as cannabis oils.
• NIC Inc.: See above for company description.

Marijuana Stocks on the NASDAQ with the Most Momentum

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

Source: YCharts

• GrowGeneration Corp.: See above for company description.
• Amyris Inc.: Amyris is an industrial biotechnology company that produces high-performance products for the health and wellness, clean beauty, and flavor and fragrance markets. The company uses cannabis in some of its consumer products. On February 22, Amyris announced ‘highly promising’ preliminary data in a pre-clinical study of its RNA COVID-19 vaccine platform. The company also announced its capacity to address manufacturing, supply scale-up, and refrigerated storage and distribution challenges related to the vaccine.
• Aphria Inc.: Canada-based Aphria is a producer, supplier, and retailer of medical marijuana products. On February 23, Aphria and cannabis company Tilray Inc. (TLRY) announced the launch of the website www.aphriatilraytogether.com. The joint website will provide shareholders of both companies with information pertinent to the upcoming shareholder vote on resolutions to merge the two companies. Aphria said the two companies have received all key regulatory approvals needed to complete the merger, which is expected to be done in the second quarter of this year. The merger would create the world’s largest cannabis company, with $685 million in combined pro forma revenue for the trailing 12 month period ending December 16, 2020, the date of the announcement of the potential merger.

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