9 marijuana stocks to buy & hold for Canadian investors

After witnessing a FOMO-styled green rush following pot legalization in October 2018, marijuana stocks in Canada went on to eventually decline. Amid COVID-19 breakout in 2020, however, pot sales quickly skyrocketed to register record highs.

Sales and export of cannabis products are likely to rise further, if and when the US legalizes cannabis at a federal level.

As the cannabis market opens up further, investors could consider holding pot stocks in their portfolio for long-term gains. Here are some of the top  Canadian cannabis stocks to look at in 2021.

  1. Canopy Growth Corporation (TSX: WEED)

Stocks of Canopy Growth closed at C$ 26.16 on August 6, 2021, up by almost a per cent from its previous close of C$ 23.96. The cannabis stock holds a market cap of roughly C$ 9.5 billion and outstanding shares 393 million.

Canopy Growth’s net revenue climbed 23 per cent year-over-year (YoY) to reach C$ 136 million in the first quarter of fiscal year 2022. Its total net cannabis revenue shot up by 17 per cent YoY to C$ 93 million in the same quarter, while its revenue from other consumer products increased by 39 per cent YoY to C$ 43 million.

Canopy’s net earnings in Q1 FY22 stood at C$ 390 million, which registered an improvement of C$ 518 million YoY.

In June,  Canopy announced completing the acquisition of fellow pot producer Supreme Cannabis.

  1. Tilray Inc (TSX: TLRY)

Tilray registered a market cap of about US$ 8 billion and a closing stock price of C$ 18.09 apiece on August 6.  

On August 5, the company announced the launch of medical pot edibles that come in chocolate flavour and as soft chew gummies.

Tilray’s net revenue stood at US$ 142.2 million in Q4 FY2021, up 25 per cent YoY. It posted a net income of US$ 33.6 million in the same quarter.

As on August 6, its debt-to-equity (D/E) ratio was 0.21.

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  1. HEXO Corp. (TSX: HEXO)

HEXO posted a market cap of C$ 742 million and a closing stock price of C$ 4.87 on August 6. Its price-to-book (P/B) ratio was 1.416 and its D/E ratio was 0.21.

In its third fiscal quarter of 2021, HEXO noted a two per cent YoY jump in its total net sales. However, its total net revenue slumbed C$ 10.2 million from Q2 FY21.

  1. Aurora Cannabis Inc. (TSX: ACB)

Aurora Cannabis, which is known to market medicinal and recreational cannabis in the Canadian and international landscapes, posted a market cap of C$ 1.8 billion and a stock price of C$ 9.17 on August 6.

In its Q3 FY21 quarterly report, the pot producer saw a total cannabis net revenue of C$ 58.4 million. Its medical cannabis net revenue for the quarter stood at C$ 36.4 million, which was up by 17 per cent YoY.

  1. Cronos Group Inc. (TSX: CRON)

CRON scrips closed at a value of C$ 9.2 on August 6. It held a market cap of C$ 3.4 billion and about 371 million outstanding shares.

Cronos Group posted a net revenue of US$ 15.6 million in Q2 2021, which was up by US$ 5.7 million YoY. Its gross loss stood at US$ 15.8 million in the latest quarter, while its adjusted EBITDA loss was US$ 49.8 million.

  1. Organigram Holdings Inc. (TSX: OGI)

Cannabis producing company Organigram Holding ranked on the Toronto Stock Exchange (TSX) as one of the most actively traded stocks, with a 10-day trading volune of about 1.5 million. The OGI scrip closed at C$ 3.38 apiece on August 6.

Organigram’s gross revenue grew by 51 per cent quarter-on-quarter (QoQ) to C$ 29.1 million in Q3 FY2021, while its net revenue jumped by 39 per cent QoQ to C$ 20.3 million.

Its recreational net revenue was up 40 per cent QoQ to C$ 16.8 million in Q3 2021.

  1. Village Farms International Inc. (TSX: VFF)

While Village Farms markets produce such as tomatoes, cucumbers, bell peppers, etc., it also caters to segments like cannabis and energy.

On August 6, VFF stock closed at C$ 12.47 apiece, with a market cap of about C$ 1 billion.

Village Farms reported sales of US$ 52.4 million in Q1 FY2021, up  63 per cent YoY. It posted sales of US$ 17.4 million from the cannabis segment in the same quarter.

  1. High Tide Inc. (TSXV: HITI)

High Tide held a market cap of C$ 406 million and a stock price of C$ 7.9 apiece on August 6.

The pot stock posted a 52-week high of C$ 16.9 (February 8, 2021).

The cannabis company reported a 99 per cent YoY surge in its revenue of C$ 40.9 million for the quarter ending April 30, 2021. It posted a net loss of C$ 12.3 million in the same quarter.

High Tide’s D/E ratio stood at 3.58 and its P/B ratio was 3.8.

  1. Fire & Flower Holdings Corp. (TSX: FAF)

Fire & Flower Holding’s market cap stood at about C$ 316 million on August 6, while its stock price was C$ 0.92. It held about 343 million outstanding shares.

The cannabis enterprise’s Q1 FY2021 revenue was up by 91 per cent YoY to C$ 44.1 million. It reported a positive adjusted EBITDA of C$ 2.3 million in the same quarter.

Fire & Flower also signed a deal with private firm American Acres Manager during this quarter in a move to enter the US market.

In Q1 FY2021, its retail store count increased to 79.

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