Best performing and fastest growing marijuana stocks in 2019. See which cannabis companies investors BUYING right now.

If you’re in the hunt for the fast-growing cannabis stocks trading on major exchanges right now, we have done the research for you; and here are the results:

Canopy Growth Corporation

Speaking of growth, one of the best performing stocks over the past 12 months has been Canopy Growth Corporation. Based in Ontario, Canada, the medical marijuana operation is the largest cannabis company in the world based on market capitalization. Canopy Growth boasts over 500,000 square feet of indoor and greenhouse weed production. It trades on the Toronto Stock Exchange under the ticker symbol WEED and on the NYSE with the ticker CGC.


Canopy Growth Stock Chart


Canopy’s American Depository Receipt on the New York exchange tracks the stock on the Toronto Exchange. They both have risen about 91% over the past 12 month. That’s almost doubling an initial investment in a year’s time.

So what has driven the surge in Canopy’s stock price? Primarily sales of its medical marijuana, marketed under the labels Bedrocan, Mettrum, and Tweed. These sales have produced total revenue of $155 million in the trailing twelve months. This is the largest revenue the company has ever realized. Sales have steadily grown from 2014 (just over $1 million). Each year, the company has seen growth, which is rather unusual as many companies will eventually have a down year.

One note of caution is in order here: while revenue and the company’s stock price have been steadily climbing, free cash flow has been getting worse. In the trailing twelve months, it registered negative $958 million, a drop from negative $260 million in fiscal year 2018.

Canopy’s diluted earnings per share have also been negative. In fact, on an annual basis, every EPS posted by the company thus far has been negative. In the past twelve months, the report stands at $1.80 per share.

Despite the concern over these figures, we found that Canopy’s balance sheet is growing quite well. It currently has $1.4 billion in assets, which is a gigantic leap from the last report of $678 million.


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The Cronos Group

Another high flyer right now is The Cronos Group. Trading under the ticker symbol CRON on the Nasdaq, investors have pushed the stock up over 114% year-to-date. That’s around 50% per month. That’s a really hot stock by any standard.


Cronos Stock Chart


The Cronos Group sells both dried cannabis and cannabis oils under the medical brand Peace Naturals. It also invests in companies based in Canada. It is headquartered in Canada with one subsidiary in Australia. The firm is rather new, starting in 2013. It currently has just 103 employees, definitely not a large operation.

CRON’s average volume is just shy of 17 million shares a day. That figure expresses a lot of interest in the stock, which is one reason it has risen so much in such a short time. But there is also a lot of volatility in the stock. Its beta is 4.28, which is four times the market’s volatility. This is an unusually high figure.

While CRON has advanced significantly so far this year, there’s a lot of downside risk in the stock. When we looked at the stock’s 52-week range, we found another significant figure: $5.12 – $25.10. That’s a pretty wide spread, which once again expresses a lot of volatility.

As for the company’s fundamentals, we see total revenue of $11.7 million in the trailing twelve months. This is a small fraction of what Canopy is doing; so obviously Cronos is a much smaller operation.

On the flip side, Cronos has an EPS of -$0.03 for the past twelve months, a much better figure than Canopy has been reporting lately. Although negative, it’s close to break even.

Cronos’ operating cash flow has gotten worse over the past couple of years. In 2017, it was negative $5.6 million. Year-to-date, it is -$33.3 million. Free cash flow is also negative—and getting worse.

Price ratios are also a concern for the stock. The P/E ratio is currently 610, very large by almost any standard. The price-to-sales ratio is 519, and price-to-book is a more reasonable 25.


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Aurora Cannabis

Another security that’s doing really well year-to-date is ACB, Aurora Cannabis. Also based in Canada, this company produces more than 500,000 kg of marijuana every year. It also conducts research on cannabis products and sells vaporizers and accessories. It has a footprint in many countries worldwide, including a new facility in Denmark. Aurora has partnerships with PharmaChoice and Shoppers Drug Mart for the marketing of its medical marijuana products.


Aurora Cannabis Stock Chart


ACB is an ADR that trades on the New York Stock Exchange. It is up more than 44% so far this year. Such upward pressure is correlated with a high average volume (more than 22 million shares traded daily) and an above-average beta (2.27).

Although Aurora doesn’t yet pay a dividend, it does have a very attractive P/E ratio (currently 35.09, much better than Cronos’). Even better, Aurora actually has reported positive earnings, a rarity in the industry. Its TTM EPS is 0.22. Yes, that’s small; but it’s positive.

During our research, we found a lot of open interest in Aurora’s option market. The nearest expiration date had thousands of contracts. The implied volatility on the contracts tends to be very high, which means investors are predicting large swings in the stock price.

As for the company’s fundamentals, we see revenue advancing significantly. In 2016, the figure stood at just north of $1.4 million, a very small operation to be sure. A year later, the figure was $18 million, and by 2018, it was a much more impressive $43.5 million.

Shareholders’ equity has also been growing at an impressive clip. The company registered just $6 million in 2016 but advanced to $1.6 billion by 2018.


Where to Trade Cannabis Stocks

Most US-based brokerage firms offer trading in cannabis stocks. If trading software is important to you, we recommend TD Ameritrade. If you’re looking for the cheapest commissions, we suggest Firstrade Review. If you want the best customer service, we propose Fidelity.


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