These Are the Best Canadian Marijuana Stocks for U.S. Investors

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These Are the Best Canadian Marijuana Stocks to Watch in 2018

If you wish to ride the pot boom, look no further than Canada. Canada’s Liberal government is laying the groundwork for it, as we speak, and a timely calculated wager may give investors a chance to double their money on the best Canadian marijuana stocks.

While it’s true that the best marijuana stocks in 2018 have already multiplied exponentially over the past year, if you think you’ve missed the boat, you’re terribly wrong. A delay at the government’s end has pushed the legalization date to later this year, which has caused marijuana stocks to take a deep plunge.

You see, traders don’t tie up their money in a bunch of stocks for too long. They seek quick returns, and if they’re not seeing any traction in their speculative bets, they just cover their positions and move elsewhere. It’s always the investors who stick around for the long haul who reap the most benefits.

The top Canadian marijuana stocks I’m about to reveal have all shed value in the past couple of months as speculators headed for the exits. The price drop may have opened a momentary window of opportunity for new buyers.

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So cutting straight to the chase, here’s my list of top marijuana stocks for 2018, which happens to enlist companies in descending order of their market value.

In my book, however, they are are all tied in the top spot. Each one of them has an X-factor that gives it an edge over the others.

Best Canadian Marijuana Stocks List

Marijuana Company OTC Ticker X-Factor
Canopy Growth Corp TWMJF First-mover industry titan
Aurora Cannabis Inc ACBFF Fastest-growing company
Aphria Inc APHQF Low-cost profitable producer

1. Canopy Growth

When it comes to picking the top marijuana stocks, I’m naturally inclined to look at the top guns in the game. Obviously, Canopy Growth Corp (OTCMKTS:TWMJF, TSE:WEED) takes center stage because of its size.

It is the largest marijuana company in Canada and steals most of the limelight for having earned the first-mover advantage. That fact alone may be enough to afford it the first stop on the leaderboard.

Canopy Growth is the leader of the pack. Even if all others falter in the race, Canopy Growth may still survive due to the very fact that it has now become “too big to fail.” But I can give you plenty of other reasons why this is one of the best Canadian marijuana stocks.

From its unbeatable sales figures to its dominant local presence, Canopy Growth is on top of its game. It’s one reason why the famous U.S.-based liquor producer Constellation Brands, Inc. (NYSE:STZ) snagged a 10% stake in it last year.

Canopy Growth tops the charts with its sales numbers. It sold $21.7 million worth of Cannabis in the most recent quarter, which is nearly double that of its next closest competitor. Sales recorded a whopping 123% jump from the same quarter a year ago.

Not all of this weed was sold to the domestic market, of course. Some of it went to international markets in Germany and Australia. Making good on its name, Canopy Growth has been growing like a weed globally. Its more recent international expansions include Spain and Denmark. Meanwhile, Jamaica and other South American markets are its next stops.

As obvious from its price chart, the market has been rewarding WEED stock handsomely. Stack it up against the market proxy—the S&P 500 index—and you see what I’m talking about. Canopy Growth stock has climbed a staggering 246% in the past one year.

Chart courtesy of TradingView.com

2. Aurora Stock

My second pick is actually my favorite on the list for two reasons. One, it is the lowest-cost producer here, and two, it is the fastest-growing marijuana company.

Aurora Cannabis Inc (OTCMKTS:ACBFF, TSE:ACB) is Canopy Growth’s most potent foe in the industry. At the pace it is expanding, this company may actually have a shot at toppling the industry’s supreme leader.

I’ve discussed Aurora’s strategic expansion in greater detail here. On the production side, Aurora is setting up its camps all across Canada. On the west coast, it is building one of the country’s largest marijuana production facilities. On the east coast, it similarly has three production sites.

Coming to Central Canada, the company has recently closed an acquisition of another major player, CanniMed Therapeutics Inc., to get access to Canada’s most populous region. In short, Aurora has got all its bases covered.

Now, on the retail side, Aurora has just entered into a key partnership with alcohol seller, Liquor Stores N.A. Ltd (OTCMKTS:LQSIF, TSE:LIQ), in a bid to increase its retail footprint across the Western part of the country.

Meanwhile, it has also recently signed up with Canada’s largest drugstore chain, Shoppers Drug Mart, for shelf space on more than 1,200 of its pharmacy outlets across the country.

Topping off this aggressive domestic expansion is its international expansion that falls into the footsteps of Canopy Growth, with new markets in Australia, Germany, Denmark, and Italy.

All of this expansion is beginning to pay off. Aurora made $11.7 million in the most recent quarter, posting a year-over-year growth of 201%.

In short, Aurora is breathing down Canopy Growth’s neck and savvy investors are paying close attention, as obvious from its price chart. ACB stock’s vivid performance beats its rivals on the list, with a whopping 367% gain since last spring.

Chart courtesy of TradingView.com

3. Aphria Stock

Aphria Inc (OTCMKTS:APHQF, TSE:APH) is my final pick of the day. This Canadian marijuana stock finds a special spot on my list since it is one of the very rare marijuana companies that are actually profitable.

Being one of the low-cost producers in the industry, Aphria is able to divert the savings to its bottom line.

In terms of sales, Aphria is a much smaller player compared to its bigger rivals, Canopy Growth and Aurora. Aphria made about $8.5 million in the most recent quarter, a growth of 63% from the same quarter of yesteryear. However, it is likewise widening its retail footprint ahead of full legalization.

While other players are serving their energies on aggressive expansion, Aphria is taking it one slow step at a time. Aphria chooses to expand through cost-effective strategic partnerships and equity investments in other smaller players in the industry instead of emptying its coffers on one big acquisition. The strategy helps ensure that the company is able to return maximum value to shareholders.

Like Aurora, Aphria has also partnered with Shoppers Drug Mart to make its Cannabis products available across the country.

In short, since it’s making hard cash, this is an underdog that has the potential to keep delivering to its investors in the long run without much fear of going under.

Chart courtesy of TradingView.com

Analyst Take

These top Canadian marijuana stocks are hands down the best options available to U.S. investors seeking exposure to this blooming industry.

Investing in Canadian stocks is not as arduous as you may think. All it takes is one call to your broker or a quick signup with a brokerage that offers over-the-counter stocks and voila! Just like that, you become part of what’s expected to be the world’s greatest “green” revolution.