The past 12 months have been a wild ride for both investors and cannabis shareholders, as evidenced by big rallies as well as steep declines.
Cannabis stocks substantially fell over the last year, with the U.S. Marijuana Index plunging 70% in 2022, according to BNN Bloomberg. Analysts and market experts blame the negative trend on the lack of policy change at the federal level and weakness in the equity markets.
Although, investors who decided to buy shares of the five marijuana operators below are, if not pleased, then at least not disappointed with their returns.
Top Marijuana Performers Over The Past 12 Months
To come up with the list of top performers, we took into consideration cannabis stocks recommended by top sector analysts such as Cantor Fitzgerald’s Pablo Zuanic and Owen Bennett of Jefferies and the brands that had the smallest declines in total return over past years.
You can meet experts like Pablo Zuanic and the top cannabis executives from the list below at the most successful cannabis business event in the world, the Benzinga Cannabis Capital Conference.
Returning to Miami for its 16th edition, this is the place where DEALS GET DONE, where money is raised, M&A starts, and companies meet investors and key partners. Join us at the Fontainebleau Miami Beach Hotel in Florida on April 11-12. Don’t miss out. Secure your tickets now before prices go up.
Organigram Holdings Inc. OGI OGI
- 12-Month Trailing Return (in percentages): -44.9
- Price Action: The company’s shares traded 2.35% lower at $0.7313 per share at the time of writing on Tuesday.
- Market Cap: $232.22 million
Touted earlier as one of Canada’s best operators, the company reported a 43% increase in the first quarter net revenue in January to CA$43.3 million ($32.3 million) compared to CA$30.4 million in the same period of fiscal 2022. Net income was CA$5.3 million, compared to a net loss of CA$1.3 million in the corresponding period of the previous fiscal year.
This was the company’s fourth consecutive quarter of positive adjusted EBITDA, reaching CA$5.6 million, compared to negative CA$1.9 million a year ago.
Zuanic acknowledged his concern about cash burn in his recent note, which could lead to an equity dilution, but noted that the company is moving toward positive free cash flow by the end of the year.
Green Thumb Industries Inc. GTBIF
- 12-Month Trailing Return (in percentages): -44.2
- Price Action: The company’s shares traded 1.27% lower at $8.53 per share at the time of writing on Tuesday.
- Market Cap: $2.04 billion
Zuanic reiterated his position on Green Thumb on several occasions, most recently calling the company a “more established” operator that is “more disciplined than most,” on the heels of its fourth-quarter earnings report, which revealed that year-to-date sales increased 6.4% due to recreational marijuana sales launch New Jersey and acquisitions made in 2021.
The company also benefited from the launch of recreational cannabis sales in Rhode Island, the expansion of medical marijuana sectors in Maryland and Virginia and maturing of the New Jersey’smarijuana market, and it will continue to profit from exposure to markets that launched recreational programs, the analyst recently said.
Curaleaf Holdings, Inc. CURA CURLF
- 12-Month Trailing Return (in percentages): -34.3
- Price Action: The company’s shares traded 1.77% lower at $3.72 per share at the time of writing on Tuesday.
- Market Cap: $2.66 billion
Curaleaf’s third-quarter revenue increased by 7% to $340 million in 2022, compared to $317 million in the corresponding quarter of 2021.
The company’s year-over-year revenue growth primarily reflects continued growth driven by new retail store openings and the commencement of adult-use in New Jersey, the acquisition of Bloom Dispensaries, the addition of new wholesale partner accounts, product launches, and the expansion of cultivation and production facilities, the company’s management said earlier.
In November, Curaleaf announced the national rebrand of its Grassroots premium cannabis flower brand.
It kicked off 2023 by announcing the closure of most of its operations in California, Colorado and Oregon to streamline its business. Additionally, to further optimize operations and reduce costs, the company plans to consolidate cultivation and processing operations in Massachusetts to a single facility in Webster, resulting in the closure of its Amesbury facility.
In May, the company tapped Matt Darin to serve as its new CEO. Darin will also speak at Benzinga’s upcoming event. Former CEO Joe Bayern agreed to launch and run a new division of Curaleaf and develop a new CPG-based business model.
Cronos Group Inc. CRON CRON
- 12-Month Trailing Return (in percentages): -33.6
- Price Action: The company’s shares traded 3.6232% lower at $1.99 per share at the time of writing on Tuesday.
- Market Cap: $768.76 million
The company’s net revenue totaled $91.9 million in 2022, a 23% increase compared to $74.4 million in 2021. Adjusted EBITDA was a loss of $21.2 million in the fourth quarter, representing a $6.1 million improvement from the same quarter of last year.
To celebrate individuals, entrepreneurs, and organizations doing amazing things in the cannabis industry, Benzinga has invited Mike Gorenstein, the company’s CEO, to join the April event and share his vast experience in mergers and acquisitions.
Acreage Holdings, Inc ACRDF
- 12-Month Trailing Return (in percentages): -24.9
- Price Action: As of Friday, the company’s shares traded at $0.9 per share.
- Market Cap: $71.72 million
In November, the company reportedconsolidated revenue of $61.4 million for the third quarter of 2022, representing an increase of 28% year-over-year. Adjusted EBITDA came in positive at $8.8 million, compared to a $6.5 million gain in the same period of 2021.
Acreage also concluded operations in Oregon in July with the completion of the sale of four retail dispensaries in the state branded as Cannabliss & Co.
Besides operating as a cannabis grower, the company distributes branded products such as The Botanist and Prime Wellness.
In October, Canadian cannabis giant Canopy Growth Corporation CGC WEED announced a strategy to accelerate its entry into the U.S. cannabis industry by creating a new U.S.-domiciled holding company, Canopy USA, LLC, which will hold the company’s U.S. cannabis investments, allowing it to acquire Acreage, alongside Wana and Jetty.
Photo: Courtesy of geralt and Kindel Media by Pixabay
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