June’s top hemp stocks include SNDL Inc., TerrAscend Corp. and Curaleaf Holdings Inc., which together lead the industry in revenue growth.
Cannabis Stocks, represented by the ETFMG Alternative Harvest ETF (MJ), are down 53% over the past 12 months, compared to the Russell 1000’s 6% gain.
Here are the best cannabis stocks in three categories: best value, fastest growing, and best performing. All data are as of June 8.
Best Value Cannabis Stocks
Here are the cannabis stocks with 12-month lows price to sales (P/S) ratio.a rough gauge of early-stage companies that could eventually produce more profit when they reach (or return to) profit. The ratio shows how much you pay for the stock for every dollar of sales generated.
| Best Value Cannabis Stocks | |||
|---|---|---|---|
| Price ($) | Market capitalization (million USD) | 12-month trailing P/S ratio | |
| SNDL Inc. (SNDL) | 1.45 | 377.0 | 0.5 |
| Cresco Labs Inc. (CRLBF) | 1.66 | 512.8 | 0.6 |
| Trulieve Cannabis Corp. (TCNNF) | 4.10 | 763.1 | 0.6 |
| Canopy Growth Corp. (CGC) | 0.69 | 361.6 | 0.9 |
| Curaleaf Holdings Inc. (CURLF) | 3.00 | 2,156.0 | 1.6 |
Source: YCharts
- SNDL Inc.: SNDL is one of Canada’s largest private sector spirits and cannabis retailers. It grows and processes cannabis for sale under the Sundial, Top Leaf, Palmetto and Grasslands brands, among others. SNDL’s net income grew more than 1,000% year-over-year in the first quarter thanks to the acquisition of the Alcanna, Valens and Zenabis brands in 2022. Net loss for the quarter decreased 5% compared to the prior year. On June 6, SNDL appointed Alberto Paredero-Quiros as CFO effective July 1 following the retirement of current CFO Jim Keough.
- Cresco Labs Inc.: Cresco Labs grows, processes and distributes cannabis products. It operates in 10 states and sells products under the Cresco, Remedi, High Supply, Wonder Wellness Co., Mindy’s, Good News, Sunnyside and FloraCal Farms brands.
- Trulieve Cannabis Corp.: Trulieve is a vertically integrated cannabis company with operations in several parts of the US. Her brands include Cultivar Collection, Muse, Roll One, Sweet Talk and Momenta.
- Canopy Growth Corp.: Canopy is a Canadian producer of medical cannabis whose brands include Tweed, DOJA, Deep Space and Ace Valley.
- Curaleaf Holdings Inc.: Curaleaf manufactures cannabis products for retail and wholesale distribution and provides similar professional services. Curaleaf reported first-quarter earnings in May. Revenue rose 14% year over year, while the company’s net loss increased 48% due to lower gross margin rates. Curaleaf also recently launched an iOS mobile app and loyalty program with a reported 1.9 million members.
Fastest Growing Cannabis Stocks
This is the cannabis stock with the highest year-over-year (YOY) sales growth over the past quarter. Growing revenue can help investors identify companies that are able to grow revenue organically or through other means, and find growing companies that have yet to reach profitability. In addition, accounting factors that may not reflect the overall strength of the business can significantly influence earnings per share (EPS). However, sales growth alone does not guarantee a strong business, as a company must also control costs.
| Fastest Growing Cannabis Stocks | |||
|---|---|---|---|
| Price ($) | Market capitalization (million USD) | Income growth (%) | |
| SNDL Inc. (SNDL) | 1.45 | 377.0 | 978 |
| TerraAscend Corp. (TRSSF) | 1.64 | 450.4 | 43 |
| Curaleaf Holdings Inc. (CURLF) | 3.00 | 2,156.0 | 14 |
| Verano Holdings Corp. (VRNOF) | 2.90 | 925.3 | 12 |
| Green Thumb Industries Inc. (GTBIF) | 7.70 | 1,825.0 | 2 |
Source: YCharts
- SNDL Inc.: See company description above.
- TerraAscend Corp.: TerrAscend is a vertically integrated cannabis company operating in the US and Canada, with brands including The Apothecarium, Ilera Healthcare and Kind Tree. On May 23, TerrAscend announced the sale of a facility in Mississauga, Canada for CA$19.7 million, with which the company plans to pay down debt. On June 7, the company agreed to acquire Peninsula Alternative Health, a Maryland-based medical dispensary, for approximately $22 million.
- Curaleaf Holdings Inc.: See company description above.
- Verano Holdings Corp.: Verano is a multi-state retail distributor of cannabis-related products under the Encore, Avexia and MUV brands.
- Green Thumb Industries Inc.: Green Thumb Industries manufactures, processes and distributes cannabis products such as concentrates, vapes, pre-rolls, edibles and topicals. The company also owns retail locations across the U.S. Its retail segment and the legalization of adult use in other markets helped drive modest revenue growth in the first quarter of 2023.
Top performing cannabis stocks
These are the cannabis stocks that have seen the smallest decline in total returns among the companies we examined over the past 12 months.
| Top performing cannabis stocks | |||
|---|---|---|---|
| Price ($) | Market capitalization (million USD) | 12 month total return (%) | |
| Green Thumb Industries Inc. (GTBIF) | 7.70 | 1,825.0 | -32 |
| Cronos Group Inc. (CRON) | 1.70 | 647.4 | -42 |
| Curaleaf Holdings Inc. (CURLF) | 3.00 | 2,156.0 | -50 |
| Cresco Labs Inc. (CRLBF) | 1.66 | 512.8 | -52 |
| TerrAscend Corp. (TRSSF) | 1.64 | 450.4 | -54 |
| Russell 1000 Index | ON | ON | 6 |
| ETFMG Alternative Harvest ETF (MJ) | ON | ON | -53 |
Source: YCharts
- Green Thumb Industries Inc.: See company description above.
- Cronos Group Inc.: Cronos is a Canadian cannabis company that sells brands including Spinach, Lord Jones and PEACE+. Cronos reported first-quarter earnings on May 9. The company’s net loss decreased by 41% compared to the previous year. Total revenue decreased 7% due to lower sales of cannabis flowers, partially offset by increased sales of cannabis extracts.
- Curaleaf Holdings Inc.: See company description above.
- Cresco Labs Inc.: See company description above.
- TerraAscend Corp.: See company description above.
Trends to Watch in Cannabis Stocks
Marijuana stocks have given investors a wild ride over the past few years, producing both major rallies and significant declines. Those investing in them should watch these key trends as they are likely to determine the direction of prices in the coming months and years.
funding: Most of the US financial institution avoid financing cannabis companies because marijuana is still federally illegal, meaning lenders who make loans could face possible prosecution. However, Secure and Fair Enforcement Banking Act (SAFE)— which passed the U.S. House of Representatives in 2021 — aimed to address the issue by preventing the federal government from penalizing banks that offer financial services to the cannabis industry. Although the legislation failed to gain support in the Senate, investors should keep an eye on any future legislation that may take a similar slant.
Mergers and acquisitions: Mergers and acquisitions (M&A) U.S. hemp industry transactions hit a record $10.3 billion in 2021 before falling to around $3 billion in 2022, reflecting suboptimal market conditions that year. Increased deal closings in 2023 could indicate that institutional investors have growing confidence in the future of the cannabis industry.
Potential US Legalization: While several cannabis legalization As bills float through the halls of Congress, bipartisan support remains difficult to achieve, creating a great deal of uncertainty for industry participants.
Benefits of hemp stocks
Despite the underwhelming performance of marijuana stocks over the past year, the sector offers significant upside potential for risk-averse investors. U.S. cannabis sales are expected to exceed $33 billion in 2023 and reach nearly $57 billion by the end of 2028, according to industry analyst firm MJBizDaily. Additionally, the global cannabis market is expected to reach nearly $200 billion by 2028, up from $28 billion in 2021.
Comments, opinions and analysis expressed on Investopedia are for informational purposes only. Read ours disclaimer of warranty and liability for more information.
As of the writing of this article, the author does not own any of the above stocks.