Top Publicly Traded Marijuana Companies
The marijuana market is, in a lot of ways, booming. With laws trending generally (even despite a few setbacks) towards deregulation and legalization, there are quite a few weed bugs who believe that now is the right time to get in on pot stocks.
But, as the industry continues to grow, the options that are offered to investors are daunting. Let’s narrow down the top publicly traded marijuana companies, so investors can get the most out of their investment.
Before we get started with my list, however, let’s take a quick survey of the marijuana industry landscape.
The thing about pot stocks is that we’re going to be hitting a lot of stops and starts with the tickers on the publicly traded marijuana companies list.
The thing about marijuana stocks right now—and this applies more so to pot than most other products—is that the political influence over the fate of these companies is huge.
Think of pot almost like another version of gold in that both are susceptible to movements on the political side of things to a more significant degree than other industries.
Of course, most products are at risk of being knocked down or elevated as a result of some political doing one way or the other, but you simply can’t compare those companies with pot stocks. The marijuana companies listed on stock markets are unique in that their business centers around a product that is largely illegal for recreational use across the world, and has only recently begun to receive acceptance as suitable for medicinal use.
Sure, all sorts of laws could drive tech company stocks, for instance, but it’s doubtful that “iPhones” are going to be made illegal anytime soon. It’s simply a different beast, and every investor ought to know the truth of the risk/reward dynamic that the industry has developed in relation to politics.
While the slowing of legalization can definitely put a hurt on the tickers on our marijuana stock list, the reverse is also true; Huge gains can be made if politicians do the unexpected and actually are able to fast-track pro-marijuana laws through whatever legislative branch that country happens to use.
Even looking at the publicly traded marijuana companies list in this piece, you’ll see a healthy representation of the best weed shares, but there is a divide in this piece between U.S. marijuana stocks and Canadian marijuana stocks. Why? Because the countries have very different views on marijuana legalization, with Canada seemingly edging close to full acceptance of the drug while the U.S. is actually at risk of scaling up its war on pot.
But we’ll get into all that later. The marijuana business has some built-in volatility relying on notoriously fickle politicians, but it also has one of the single best growth potential of any emerging industry out there.
Largest Marijuana Companies on Stock Market Today
There are quite a few marijuana penny stocks out there that are making some people millionaires while bankrupting others. That is, after all, the nature of trading on the lower end of stocks.
|Largest Marijuana Companies on Stock Market Today (U.S. and Canada)||Stock Tickers|
|1. Canopy Growth Corp||CVE:CGC, TSE:WEED|
|2. Insys Therapeutics Inc||NASDAQ:INSY|
|3. Aphria Inc||CVE:APH, TSE:APH|
|4. Aurora Cannabis Inc||CVE:ACB|
Canopy Growth Corp
But, if investors want a bigger, more stable offering from which to choose the top publicly traded marijuana companies, there’s no better stock to start with than Canopy Growth Corp (CVE:CGC, TSE:WEED).
First, it has a great TSE ticker. I mean, “WEED” has to be the single-best four-letter stock ticker for any company in the pot business.
Another boon is that it’s nestled in Canada, which is one of the more pot-friendly nations around.If that wasn’t enough, Canopy Growth also has a great history of stock price growth as of late. Up more than 185% over the past 12 months, the company also has a market cap over $1.0 billion, dwarfing many competing marijuana producers.
While the company has stumbled some since the beginning of 2017, a lot of that relates more to the political back-and-forth rather than to management or performance by Canopy Growth.
That said, news about a pesticide being used on certain companies’ marijuana crops drove a scare in the industry, and WEED shares were not immune. In response, the company plans to unveil new testing methods on its products to ensure that no more contaminated products get out to the public. (Source: “Canopy Growth Corp. to implement new pesticide-testing regime for cannabis,” The Globe and Mail, April 26, 2017.)
That move should assuage fears and help WEED stock regain its momentum.
Chart courtesy of StockCharts.com
Marijuana Companies in U.S. Stock Market
While the U.S. is a hugely lucrative market, things aren’t exactly rosy for American weed companies.
The election of President Donald Trump has brought a different flavor to U.S. politics in many areas, especially when compared to his predecessor. Marijuana laws are no exception.
While Trump has been more on the “states rights” team when it comes to pot, some of the top members of his administration have been very critical of the state of marijuana laws in the United States. The two most vocal include Attorney General Jeff Sessions and Press Secretary Sean Spicer.
While the federal government is the highest law in the land, there’s always the threat that the government could come down hard on the eight states that have passed recreational marijuana laws and the 29 states that have voted to legalize medicinal marijuana.
But it’s not all bad news. Looking at a Gallup, Inc. poll from October 2016, 60% of Americans approve of legalizing marijuana. That ranks as the highest percentage recorded in the 47 years that public approval of the drug has been measured. (Source: “Support for Legal Marijuana Use Up to 60% in U.S.,” Gallup, Inc., October 19, 2016.)
So there’s definitely some good stock picks in the marijuana market coming out of the United States.
Insys Therapeutics Inc
First, let’s look at a company like Insys Therapeutics Inc (NASDAQ:INSY). Before even delving into the weed side of things, know that Insys counts itself as one of the fastest growing companies, period.
Another reason that INSY stock ranks on our top publicly traded marijuana companies list is that the company has a lot in the pipeline that could register big gains. The sale of “Syndros,” for instance, is huge for the company.
Syndros is currently the only U.S. Food and Drug Administration (FDA)-approved drug that is used to treat nausea and vomiting caused by chemotherapy, making use of marijuana chemicals in the drug.
With a poor 2016 performance by the company, things seem to be on an upward trend now, gaining over 20% since the beginning of the year.
Insys ranks fourth overall on the Fortune list of the 100 fastest growing companies, making it one of the more exciting members of the publicly traded marijuana companies list. (Source: “Fortune 100,” Fortune, last accessed May 1, 2017.)
Marijuana Companies in Canada Stock Market
While the U.S. has gone in the more restrictive direction when it comes to marijuana stocks, Canada has gone and done the opposite. And who said you can’t tell the difference between the countries?
Canada’s federal government ran its most recent election campaign promising to legalize all forms of marijuana. While the current administration has reneged a few other campaign pledges, the marijuana one seems to be one for which it’s sticking to its guns.
The most recent news puts Canadian legalization at some time within the next 12 months, in order to have everything running smoothly before the next “4/20,” an annual sacred event for weed enthusiasts everywhere.
With that weed-friendliness in mind, investors have a good number of pot stocks to gobble up.
First, there’s Aphria Inc (CVE:APH, TSE:APH). The company has registered over 290% in gains over the past year. While, like a number of other pot companies, it has slowed down some in 2017—especially with the uncertainty of the politics surrounding marijuana regulation—there’s a good chance that APH has yet to stop growing. And when (if) the weed legalization process runs smoothly in Canada, expect to see some big gains before long.
Aurora Cannabis Inc
Another great option for investors on the lookout for a hot pot stock is Aurora Cannabis Inc (CVE:ACB). It may not be the largest marijuana company but, what it lacks in size, it more than makes up for in massive growth potential.
The company has seen incredible gains over the past 12 months, hitting over 5000% increases compared to 12 months ago. It was unable to sustain that level of extreme growth, but the 4800%-plus boost in the past year is hardly something to scoff at.
The company is small enough to still experience big growth numbers in a short time span, while also having gained some clout and stability as a result of last year’s incredibly impressive burst.
So, there you have it. Several marijuana companies listed on stock market, both to the north and the south.
The above marijuana stocks list covers some of the best that investors can find in the markets today, with companies that have that right mix of stable foundations coupled with great potential.