The marijuana industry is one of the hottest sectors in the market, with stocks skyrocketing to new heights in 2020. As we enter 2022, 10 companies have valuations of at least $2 billion. Here’s how these industry titans rank as we enter 2022. The largest of them is Canopy Growth, with a current valuation of $9.18 billion and an expected growth rate of 16%. Their closest competitor is Curaleaf Holdings, which was valued at $7.92 billion earlier this year but may be worth more than double that by the end of 2022 if their projections hold true (projected growth rate: 18%). As for Green Thumb Industries — they’re currently valued just over 5% higher than GW Pharmaceuticals.
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Let’s have a closer look at the companies from the list:
1. Canopy Growth: $9.18 billion
Already for several years, this Canadian company is the biggest one in the industry. They were the first to surpass $500 million in sales, and currently, they’re valued at almost $10 billion. On an operational basis, David Klein, who previously served as Constellation CFO and now works as Canopy CEO, has been working hard to reduce expenses. Despite having the highest market value in the business, there is still a lot of work to be done to get this firm anywhere near recurring profitability.
2. Curaleaf Holdings: $7.92 billion
They also moved up from a lower league and started with less than half of Canopy’s valuation (less than $600 million). Now their market cap is more than twice as big. The company owns more than 90 dispensaries operating in the US and Canada and is trying to keep up with the growth. Curaleaf is expected to become the first cannabis company to reach $1 billion in annual sales, according to Wall Street.
3. Green Thumb Industries: $5.21 billion
The company owns 50 dispensaries in 12 states. It has a strong presence in the greater Chicago area with 14 dispensaries, but it also operates throughout Michigan and New York. The growth of Green Thumb’s business may be attributed to its market selectivity and the fact that two-thirds of its sales are derived from derivatives (edibles, vapes, infused beverages, concentrates, and topicals).
4. Innovative Industrial Properties: $4.06 billion
The absence of cannabis banking reform at the federal level in the United States has allowed IIP’s sale-leaseback program to flourish. The next five years are expected to be another era of tremendous expansion.
5. Trulieve Cannabis: $3.71 billion
The firm is both the first and most profitable pot stock in terms of market value and revenue. It’s also the state’s biggest fully integrated business. Trulieve’s statewide saturation has helped the firm develop its brand without having to spend much on advertising, allowing it to capture almost half of the medical marijuana market share in Florida.
6. GW Pharmaceuticals: $3.39 billion
One more of Constellation Brands’ companies moved up from a lower league as well, but their valuation didn’t grow so much because of that — GW’s valuation increased by only slightly over $0.50 billion compared to 2020 numbers. GW Pharmaceuticals is a biotechnology firm that specializes in the field of drug development and product manufacturing. The firm’s most well-known product is Epidiolex, which is authorized to treat two rare types of childhood-onset epilepsy and received an expanded label in 2020 to include tuberous sclerosis complex.
7. Cronos Group: $2.47 billion
It is another Canadian licensed producer in the industry. Cronos is also one of few pot stocks that has a presence in the United States. Its subsidiary, Cronos Growco (formerly known as Peace Naturals), was acquired last year for $118 million and provided the company with access to markets like California and Ohio.
8. GrowGeneration: $2.2 billion
It is a hydroponic and organic gardening store chain. It is a firm with strong, double-digit organic growth from producers seeking to improve their yield, but it has also complemented its growth with nearly a dozen purchases since 2014.
9. Cresco Labs: $2.13 billion
Cresco Labs is quite popular among consumers, especially in Illinois, as this is a limited license state. The company was able to place cannabis goods into more than 575 dispensaries in California as a result of its acquisition of Origin House in January 2020. Cresco’s goal of attaining recurring profitability in 2021 is plausible, with sales of $1 billion per year by 2022.
10. Columbia Care: $2 billion
Columbia is a medical marijuana company that operates in 12 states and Washington, D.C., with access to over 100 markets across the country. It has a huge presence on the East Coast, and it’s operating dispensaries in Nevada and Maryland as well. Its main focus is to provide infused products for patients through its partnerships.
This list is not full, but it can give a start to see the top marijuana stocks in 2022. If you want to invest in one of the companies on this list, you should consult with your financial advisor first or do your own research. This allows you to make a better decision for your particular situation. Moreover, it is essential to consider that all stocks may incur losses and that the past performance of a stock should not be seen as an indication for future performance. The situation may change unexpectedly, and only a smart choice of companies will bring you success.