Click here to read the latest top cannabis stocks year-to-date list.
Amid a global pandemic, the cannabis stock market has taken heavy losses as the industry adjusts to developing metrics and the evolution of consumer trends.
As the US election draws nearer, expectations are rising for what’s in store in the remaining months of 2020. For now, the Investing News Network is looking back at the performance of stocks in the at-large cannabis universe over the first three quarters of the year.
Overall, the cannabis space has taken some serious lumps since 2019 following poor performances by leading companies, particularly in the Canadian market.
In 2020, experts agree the wedge is growing between companies that are performing well and those that are lagging behind. Whereas before cannabis investments encompassed a large collection of public names, investors are now placing wiser and more specific bets.
Data for this article was collected on October 9, 2020, and the companies included had to meet a minimum market cap requirement of C$10 million. Top cannabis stocks year-to-date on the NYSE, NASDAQ, TSX, TSXV and CSE were considered.
1. Vibe Growth (CSE:VIBE,OTC Pink:VBSCF)
Year-to-date gain: 477.78 percent; current market cap: C$41.76 million; current share price C$0.52
Vibe Growth is a cannabis company based in the expansive California state market. This retailer and operator offers consumers its extensive line of products at the three stores it manages in the state.
As part of its positive performance, the company reported a profitable operating period for the three months ended on June 30. “Not only did we achieve record dispensary sales and increased cultivation yields, but Vibe also achieved record EBITDA and after-tax net income,” said CEO Mark Waldron.
2. IM Cannabis (CSE:IMCC)
Year-to-date gain: 359.46 percent; current market cap: C$266.53 million; current share price C$1.70
This Israel-based cannabis operator offers medical products in the country and holds a subsidiary in Germany to distribute its offerings in the European market.
This past quarter, the company solidified its presence in Germany by beginning the sale of its IMC-branded cannabis products.
As part of its operating quarter ended on June 30, the company reported a significant uptick in revenue. However, the firm still saw a net loss of just under C$10 million and an adjusted EBITDA loss of C$1 million, both greater than the same reporting period in 2019.
3. Next Green Wave Holdings (CSE:NGW,OTCQX:NXGWF)
Year-to-date gain: 180 percent; current market cap: C$46.59 million; current share price C$0.28
Next Green Wave Holdings is an established seed-to-sale operator in the modern California state market.
In a recent update, this operator celebrated positive metrics for adjusted EBITDA and cash flow for the three operating months of July, August and September.
In an update to shareholders, CEO Mike Jennings said the company has three goals ahead of itself: continue to operate and improve its production numbers; grow revenue of branded products and add novel items like extracts; and take its extraction operation online before the end of the year.
4. CB2 Insights (CSE:CBII,OTCQB:CBIIF)
Year-to-date gain: 166.67 percent; current market cap: C$37.45 million; current share price C$0.32
Another of the top cannabis stocks year-to-date, CB2 Insights went public in early 2019, selling itself to investors as an ancillary cannabis opportunity based on the technology side of business. The company offers clinical management and data collection software.
In August, the company reached a milestone by reporting its first-ever EBITDA-positive operating quarter.
CB2 Insights closed a private placement worth C$3 million from a group of investors led by Merida Capital Partners and Affiliates, a well-known cannabis-related investment group. The deal closed in September, but not before being upsized to just over C$5 million.
5. XPhyto Therapeutics (CSE:XPHY,OTCQB:XPHYF)
Year-to-date gain: 149.02 percent; current market cap: C$139.42 million; current share price C$2.54
One of the growing trends in the cannabis investment proposition is the magnification of companies performing alongside traditional growth and sales operations. One such company doing well for itself in 2020 is XPhyto Therapeutics.
This company approaches cannabis by way of researching novel drug delivery technologies. XPhyto holds subsidiaries in the European market that are involved in trials for a CBD drug treating epilepsy.
This year, the company has received a boost in its performance thanks to the measures it has launched for COVID-19 testing. XPhyto told investors it is eyeing Q1 2021 as a potential timeline for regulatory approval of its rapid screening test.
While some of the biggest established names in the cannabis market have faced struggles, the industry has grown to the point where it holds many diversified opportunities.
This list of the top cannabis stocks year-to-date proves cannabis investment is no longer a blanket arena where one kind of business applies.
At the same time, experts have pointed to potential signals that a recovery is coming for some large and medium-size public names in the space.
Want more details? Check out these articles for more INNdepth coverage:
- Cannabis Investment: Canadian Cannabis Stocks
- Invest in Cannabis: TSX Cannabis Stocks
- Cannabis Companies: Stocks on the TSXV
- 10 Small-cap Cannabis Stocks
- 10 Big-cap Canadian Cannabis Stocks
- CSE Marijuana Stocks
- Cannabis Stocks on the CSE25 Index
- Are Canadian Marijuana Stocks a Good Investment?
Want an overview of investing in cannabis stocks? Check out Investing in the Cannabis Industry
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.