Our Stock Screening Research Reveals 14 Established Marijuana-Related Companies. 7 Stocks In The List Are Fast Growing With 60%+ 1 Year Earnings Growth
The Fastest Growing Publicly Traded Marijuana Companies Are:
- Cara Therapeutics, Inc – 1,300%
- Cronos Group, Inc – 282%
- Aurora Cannabis, Inc – 160%
- Innovative Industrial Properties, Inc – 130%
- Corbus Pharma Holding, Inc – 97%
- Canopy Growth Corporation – 80%
- GW Pharma Plc – 61%
Fast Growth Cannabis Stocks List – Fundamental Stock Scan
1. Cara Therapeutics, Inc – Medical Marijuana Research
Cara is a biotechnology company that develops drugs for the treatment of amongst other things acute and long-term chronic pain. It works on solutions that include opioid as also cannabinoid drugs.
Cara has a market capitalization of $721M and is listed on the Nasdaq. The institutional ownership of stock is incredibly high for a pot stock with 61% institutional ownership, this means it is considered a legitimate investment by financial institutions.
It is not yet making a profit, but it did experience a 1300%+ revenue increase for the last 12 months based on sales of $13.5M.
2. Cronos Group, Inc – Medical Marijuana Cultivator
The very first cannabis company to float on the NASDAQ is Cronos Group. Based in Canada Chronos Group grows and cultivates medical marijuana. The company is more mature than most and also has offices in Germany, Israel, and Australia.
Chronos has a solid market capitalization of $1.2B and relatively low insider ownership of 14%, which means there still could be an opportunity here. The problem is that the opportunity comes at a heavy price, with the share price at $20 but the price earnings ratio (PE) is at 513. This means that the company’s investors expect great things of Chronos because it is valued at 513 times the current earnings.
3. Aurora Cannabis, Inc – Plant Grower
Aurora Cannabis is also based in Canada but is 5 times larger in market capitalization than Chronos Group being valued at $5.8B. Aurora has 9 offices and growing plants in Canada and a further 2 farms in Denmark and is expected to produce over half a million kilos of medical marijuana this year.
Aurora is the second-largest cultivator of medical marijuana and it has experienced a 160% revenue growth over the last 12 months, based on sales of $47M. It has a slightly high debt to equity ratio of 13, and a PE Ratio of 53, but that can be normal in high growth environments.
4. Innovative Industrial Properties, Inc – Real Estate Investment Trust
If you are interested in investing in marijuana-related properties, then this REIT could be for you as it is a medical marijuana Real Estate Investment Trust. In the last year, it has expanded from 5 to 13 properties across the USA from California to New York.
IIPR has a slightly high PE ratio of 59, based on sales of $14.8M and earnings of $7M for the last 12 months. But the revenue growth rate for the last 4 quarters is 130% and for the last quarter 225%. It is also one of the very few Cannabis-related stocks to actually offer a dividend, predicted to be 1.6% this year.
5. Corbus Pharma Holding, Inc – Medical Research
Corbus Pharmaceuticals Holdings, Inc. is a clinical-stage pharmaceutical company focused on developing and marketing of medicines to treat inflammatory and fibrotic diseases. The company’s big bet is Lenabasum currently being evaluated in dermatomyositis, systemic sclerosis, cystic fibrosis, and systemic lupus erythematosus.
Corbus has a market capitalization of $400M, and current institutional ownership of 45% meaning that big investors see a lot of potential here.
One year sales are only $4.8 million and the company is not yet making a profit. But revenue growth for the last 12 months was 97% and if it makes the breakthroughs in its treatments, it will be great for patients and investors alike.
6. Canopy Growth Corporation – Medical Marijuana Cultivator
The behemoth of growers is Canada’s Canopy Growth Corp, listed on the NYSE. It is clearly the largest publicly traded weed company. Canopy grows not only medical weed but also retail consumer pot. Tweed is one of their most successful brands that is associated with and marketed by the rapper Snoop Dogg.
For a company with a large market capitalization of $7.8B, Canopy knows how to grow weed but also revenues and market share. With 1 year sales of $88M and a 12-month growth rate of 80%, this could be a solid market leader to invest in. The future also looks bright as in 2017 Constellation Brands the beverage corporation and maker of Corona beer, bought 9.9% stake opening up both companies to new product lines such as cannabis-infused beverages.
7. GW Pharma Plc – Medical Research
U.K.-based GW Pharmaceuticals took a major step forward in June 2018 when the FDA approved its drug derived from an active marijuana ingredient. Epidiolex has been approved for the treatment of seizures associated with two rare and severe forms of epilepsy, Lennox-Gastaut syndrome and Dravet syndrome. The company is listed on Nasdaq and is a huge corporation with a market capitalization of $62B.
Interestingly it has a very low institutional ownership of only 6.5% and a low debt to equity ratio of 0.8. On the other hand, it seems to be running a loss at the moment only generating $12.5M in sales, and losing $178M in earnings. Lastly, the earnings growth rate is improving standing at 61% for the last 12 months.
How To Buy Publicly Traded Cannabis Stocks
Trading fees can eat up your profits with stocks. For instance, E-Trade charges a $4.95 fee for every transaction. Hence, the cost of trades could exceed the value of the marijuana stocks. Thus, you should try to find a low-fee brokerage if you plan to trade high volumes of stocks.
Firstrade our review winning broker offers free stock trading ($0 Commissions) and covers both the over the counter (OTC) and Pink Sheets Markets. Interactive Brokers are also a great broker and allow very low cost ($1 per trade) trades.
[Related Article: 10 Best Discount Stock Brokers]
Summary: 7 Publicly Listed Marijuana Companies & How To Buy Them.
As you can see, the cannabis business is still in the fledgling stage, and is set to experience high growth providing the political landscape and attitudes towards marijuana do not change.
[Related Article: Trade.com Offers Medical Marijuana Stock CFD’s]
Which company will you invest in? Let us know in the comments section below.