The cannabis industry reached a watershed moment in 2021. As federal legislators made significant moves toward crafting a measure to remove marijuana from a list of prohibited drugs, the discussion over pot legalization reached a new level.
There will be support for the effort on both sides of the aisle, but whether or not it will get the necessary votes to become law is unclear. Mergers and acquisitions (M&A) also occurred frequently within the sector. According to Viridian Capital Advisors, there were 306 merger and acquisition deals in 2021, up from 86 in 2020.
In the United States, cannabis is legal in 16 states and is rapidly gaining popularity abroad. Some of the industry’s most promising areas for future expansion include using new technologies. It is difficult to conduct financial transactions with marijuana over the internet since cannabis is still prohibited at the federal level.
Because of this, many cannabis businesses are providing payment upon delivery. According to a study by CNBC, these services generate over $9 billion in annual sales.
Concerns about inflation caused a widespread sell-off of growth stocks, negatively affecting several cannabis companies by the end of 2021. However, experts predict a robust recovery for the sector in 2022. Canopy Growth Corporation (NASDAQ: CGC), Tilray, Inc. (NASDAQ: TLRY), and Innovative Industrial Properties, Inc. (NYSE: IIPR) are among the best cannabis companies to purchase in 2022.
Stocks of downtrodden marijuana could experience significant growth.
Despite legal obstacles in the U.S., the cannabis sector is prospering. BDSA, a source of retail sales statistics for the industry, forecasts that worldwide cannabis sales will top $35 billion in 2022, an increase of 22% over 2021. The future for marijuana equities in the U.S. is less optimistic.
The District of Columbia, three territories, and 37 states have so far legalized the use of cannabis products for medicinal purposes. Recreational usage is allowed in 19 states, Washington, D.C., and two territories. Cannabis products continue to fall under the Controlled Substances Act’s Schedule I category, making it illegal for users to possess or use them following federal law, despite two recent efforts by the U.S. House of presentatives to enact legislation legalizing it on a national level.
Rules may change, and many experts think there is still a lot of space for development in the marijuana market. The top seven marijuana stocks to purchase in 2022 are listed below if you wish to invest in this emerging sector.
Also read: Global CBD (Cannabidiol ) Oil Market to See Major Growth By 2022 To 2028
Leading Cannabis Stocks for August 2022
Companies that support or participate in producing, distributing, and selling marijuana for medicinal and recreational purposes make up the marijuana business. Cannabis has acquired more acceptability and is now legal for recreational, medical, and other applications in many countries, states, and jurisdictions. Canopy Growth Corp.
(CGC), Cronos Group Inc. (CRON), and Tilray Inc. are a few of the top businesses in the marijuana sector (TLRY). As they concentrate on the capital necessary to accelerate revenue development, several large marijuana firms have reported substantial net losses. States in the United States currently allow marijuana usage in some manner.
The ETFMG Alternative Harvest ETF (M.J.), which tracks marijuana equities, has significantly underperformed the general market. Over the last 12 months, M.J. has generated a total return of -63.7%, much less than the -7.1% total return of the Russell 1000 Index. All information in the tables below, including those relating to market performance, are as of August 8, 2022.
Also read: Top Marijuana Stocks Before August 2022?
The top five marijuana stocks with the most significant value, quickest growth, and best performance are listed below:
These marijuana stocks have the lowest price-to-sales (P/S) ratio over the last 12 months. This may be used in place of another preliminary estimation of a company’s worth for startups or sectors experiencing significant shocks. When a company reaches (or returns to) profitability, it may generate more considerable profit. The P/S ratio displays how much you are forking over for the stock for every dollar in revenue.
Ayr Wellness Inc.
Ayr Wellness is a cannabis business that engages in producing, distributing, and cultivating cannabis and goods derived from it. Under names including Kynd, Origyn, Stix Preroll, Levia, and Road Tripper, the company’s product line includes flowers, tinctures, edibles, and vape items. Additionally, Ayr Wellness trades OTC in the U.S. markets under the symbol AYRWF. Ayr announced the establishment of dispensaries in Florida and Pennsylvania at the end of July. Currently, the business operates 49 medicinal dispensaries in Florida and nine in Pennsylvania.
GrowGeneration Co.
Throughout North America, GrowGeneration runs hydroponic garden shops. The firm marketed and distributed a range of hydroponic gardening supplies, including growth medium, fertilizers, lighting, ventilation equipment, and more. Over 60 retail and distribution facilities are run by it nationally. GrowGeneration released their Q2 2022 financial results on August . It reported a net loss of $136.4 million as opposed to a net profit for the same period last year. Annual revenue decreased (YOY). The net income figures include a $127.8 million impairment charge for goodwill and other intangibles.
Cresco Labs Inc.
Cresco Labs is known for cultivating, producing, and distributing consumer-packaged cannabis products. The business runs facilities and dispensaries in more than 70 locations across ten states. Cresco, Remedi, High Supply, Wonder Wellness Co., Mindy’s, Good News, Sunnyside, and FloraCal Farms are just a few of its brands.
Additionally, the Cresco Labs stock is traded OTC in the U.S. under the symbol CRLBF. On July 15, Columbia Care Inc., a producer of cannabis products, announced that the Supreme Court of British Columbia had issued a final ruling authorizing the merger of Columbia Care Inc. with Cresco Labs. According to the contract, Cresco will buy all of Columbia Care’s outstanding shares. The consolidation is anticipated to be completed in Q4 2022. The agreement’s terms weren’t made public.
Jushi Holdings Inc.
Jushi Holdings is a holding corporation specializing in hemp- and cannabis-based products with recognizable brands. The business runs activities in retail, distribution, cultivation, and processing. The Bank, which focuses on plant genetics and cultivation; The Lab, which specializes in vape products and concentrates; Nira+, which manufactures THC products for medical use; Sèche, which sells a variety of branded ground and flower cannabis products; and Tasteology, which sells THC-infused goods, are some of its brands.
Under the ticker JUSHF, Jushi is also traded OTC in the United States. On August 8, Jushi said that it and Curaleaf Holdings Inc. and Edward Kremer, the company’s former chief financial officer (CFO), had struck a private settlement deal. The agreement settles Jushi’s claims for tortious interference against Curaleaf and violation of the employment agreement against Kremer. Kremer was granted a restricted waiver of his non-compete clause as part of the arrangement, allowing him to take a job at Curaleaf.
Aurora Cannabis Inc.
Based in Canada, Aurora Cannabis is a business that produces, sells, and distributes medicinal cannabis products. Its brands include Whistler, Daily Special, MedReleaf, Aurora, Aurora Drift, and more. The company’s growth plan focuses on the global medical cannabis market, the CBD market made from hemp in the U.S., and the recreational markets in Canada.
