10 cannabis stocks in focus

Summary

  • Scotts Miracle-Gro Company stocks grew by 46% in the past year.

  • Revenue of Innovative Industrial Properties Inc. rose from US$21.13 million to US$42.89 million YoY in the quarter ended March 31, 2021.

  • Village Farms International, Inc. stock saw an annual growth of 106% with improved sales.

Cannabis stocks had become a buzzword following their market debut nearly a decade ago. But despite their oscillating popularity over the years, they regained their shine in 2020 as countries in Europe and North America, including the US, recognized their value in the drug industry.

This development firmly establishes cannabis as a lasting industry contrary to the earlier belief of a short-lived bubble. President Biden gave a fresh boost to the industry after he signaled that his administration would consider revoking a federal ban on the interstate trade in marijuana.

Here are 10 cannabis stocks in focus as the government mulls annulling the federal law.

GrowGeneration Corp. (NASDAQ: GRWG)

The company operates a chain of hydroponic gardens or greenhouse facilities in North America, where it develops cannabis products for medicinal and recreational purposes.

Its market capitalization is around US$2.3 billion.

At the end of the March quarter in 2021, its total revenue from stores, distribution, and e-commerce rose from US$32.98 million to US$90.02 million YoY. It earned a net profit of US$6.15 million against a net loss of US$2.09 million in the corresponding period.

The stock price grew by around 458% in the past year. It closed at US$40.28 on June 18.

Also Read: How can I invest in US stocks?

Cronos Group Inc. (NASDAQ: CRON)

This Ontario-based company is engaged in the production and distribution of cannabis products. Its market capitalization is around US$3.1 billion.

It booked net revenue of US$14.64 million for the quarter ended March 31, 2021, compared to US$9.34 million in the same period last year. It reported an operating loss of US$43.46 million against an operating loss of US$45.06 in the corresponding period.

Cronos Group had recently announced to acquire a 10.5% stake in the US cannabis firm PharmaCann Inc. The stock grew around 30% in the past year. It closed at US$8.35 on June 18.

Village Farms International (NASDAQ: VFF)

It is one of the largest greenhouse cannabis growers in North America.

Its market cap is around US$834.4 million. Its sales for the quarter ended March 31, 2021, was US$52.4 million compared to US$32.11 million for the same quarter of 2020.

It booked a net loss of US$7.38 million compared to a net profit of US$4.19 million in the same period of 2020 due to low gross margins from Pure Sunfarms, which it had acquired in FY2020.

The stock climbed 106% in the past year. It closed at US$9.99 on June 18.

Hydrofarm Holdings Group, Inc. (NASDAQ: HYFM)

It is a manufacturer and distributor of equipment for the cannabis industry in the US and Canada.

HYFM’s market cap is around US$2.2 billion. Its net sales were US$111.39 million in the quarter ended March 31, 2021, up 66.5%, against US$66.90 million in the same period of 2020.

Net income surged to US$4.94 million from a net loss of US$3.73 million YoY.

On June 17, it announced to purchase Aurora Innovations, Inc., Aurora International, Inc., and Gotham Properties LLC to strengthen its market position.

The stock price grew around 5% since October. It closed at US$56.50 on June 18.

Also Read: What Are Large-Cap Stocks?

Source: Pixabay.

Scotts Miracle-Gro Company (NYSE: SMG)

Its primary cannabis market is in North America. Scotts’ market cap is about US$10.7 billion.

The company’s net sales for the quarter ended April 3, 2021, was US$1828.8 million compared to US$1382.8 million in the quarter ended March 28, 2020. Its net income attributable to controlling interest was US$310 million against US$252.2 million YoY.

The share price witnessed a growth of 46% in the past year. It closed at US$192.47 on June 18.

Also Read: Green Thumb & Curaleaf: 2 Pot Stocks On A High

Tilray, Inc. (NASDAQ: TLRY)

It markets its cannabis products in North America and Germany. Tilray market capitalization is around US$ 7.54 billion. It posted revenue of US$48.01 million for the quarter ended March 31, 2021, compared to US$52.10 million in the same quarter of the previous year.

It incurred a net loss of US$340.96 million against a net loss of US$184.12 million YoY.

The share price saw 110% growth in the past year. It closed at US$16.91 on June 18.

Canopy Growth Corporation (NASDAQ: CGC)

It is a diversified company and produces cannabis for medical and recreational use.

It is an US$8.8 billion company. Its total revenue was US$43.29 million, and net loss attributable to the common shareholders was US$343.39 million for the quarter ended March 31, 2021.

The share price grew 38% in the last year. It closed at US$22.98 on June 18.

Innovative Industrial Properties, Inc. (NYSE: IIPR)

It is a real estate investment trust (REIT) and leases properties to licensed cannabis operators.

It has a market capitalization of around US$4.41 billion. Its total revenue rose from US$21.13 million to US$42.89 million YoY in the quarter ended March 31, 2021.

Its net income jumped 122% YoY to US$25.59 million. The stock price increased by 98% in the past year. It closed at US$184.37 on June 17.

Cara Therapeutics, Inc. (NASDAQ: CARA)

It is a biopharmaceutical company. It also develops cannabis-derived drugs and therapeutics for chronic pain and diseases. Its market capitalization is around US$728 million.

Its revenue fell from US$8.09 million YoY to US$1.94 million in the quarter ended March 31.

It booked a net loss of US$23.3 million YoY against US$28.9 million in the corresponding period.

The stock price fell around 12% in the past year. However, it grew nearly 10% over the past month. It closed at US$14.55 on June 18.

Source: Pixabay.

Also Read: Why Do Companies Choose NASDAQ Over NYSE?


Jazz Pharmaceuticals Plc. (
Ireland) (NASDAQ: JAZZ)

It is a US$10.76 billion biopharmaceutical company and develops drugs for malignant tumors and neurological diseases. It also has interests in cannabis products.

Its total revenue was US$67.58 million, and net income was US$121.83 million in the March quarter. It had incurred a loss of US$157.83 million in the same quarter a year ago.

The stock price grew by 56% in the past year and closed at US$177.28 on June 18.

Comment


Disclaimer