10 Awesome Canadian cannabis stocks

Published Jan 4, 2022 10:00 a.m. ET
iStock / Darren415

2021 was supposed to be a promising year for Canadian cannabis. Unfortunately, it’s been a bust, with significant losses pretty much across the board, showing a slight hesitation where growth and prospects are concerned, but all is not lost. If you’d like to invest in the stock market and are looking at cannabis stocks as an option, then you might want to check out these ten strong businesses, all of which are set to go down in history as some of the most profitable and successful.

1. HEXO Corp

HEXO, a cannabis company based out of Quebec, hasn’t had the best reputation as of late, after massive layoffs, the shutdown of many of its facilities, and eyebrow-raising quarterly write-offs, but a lot has changed through a major overhaul of executive positions, like the new CEO. It’s still considered to be a risky investment, with a large debt repayment ahead. However, the company’s visibility and reputation in the industry might be just the boost it needs to succeed long term.

2. Organigram Holdings

Organigram holds 7%-8% of the Canadian market share, and though it certainly took a hit thanks to the pandemic, it’s reported a 22% increase in revenue in the last quarter. Its SHRED product line is doing really well. All that good news combined with a massive investment which came from British American Tobacco to the tune of $221 million, and its strong position in wellness products and edibles, the company is expected to make a comeback in no time.

3. Tilray

BC’s Tilray made moves in 2018 when it quadrupled in value after debuting on the NASDAQ. Of course, it hasn’t delivered so well for investors since then, but fans of the company point towards the recent merger with Aphria as a good reason to be hopeful for what’s to come. With a revenue of more than $900 million each year, and ample investments in the United States, positioning Tilray to take over the market once federal legalization becomes a reality, it’s in an excellent position financially, making it an appealing Canadian cannabis stock for investors.

4. Canopy Growth Corp

Canopy Growth had production facilities coming online before cannabis was even legal in Canada, putting the company in an excellent position as one of the longest-running and most well-known names in the game. A couple of years ago, troubles arose for the company, but after firing the CEO and making substantial changes like acquiring Supreme Cannabis, a craft grower, this is one of the few pot stocks expected to deliver a payoff over the next year.

5. Delta 9 Cannabis

It’s a producer, retailer, and wholesaler company, which is why the company is able to grow so quickly, with 16 stores established in Canada. It’s a relatively new cannabis business in the grand scheme of things, but Delta 9 Cannabis is a player that’s expected to do well in the years to come. With a hard focus on retail, the expansion of this Canadian cannabis LP is happening fast. There’s no telling how far it will go, and some investors are expecting a return of more than 100% for those who choose to buy in now, so it’s certainly worth considering.

6. Aurora Cannabis

The Alberta-based Aurora Cannabis has been around since the earliest days of the industry, establishing operations in Canada and internationally, landing the company a large share of the market. Since then, it’s been surrounded by controversy for massive product write-offs and obvious losses through closures of several locations, some of which hadn’t even been built to completion yet. Luckily, its position in the industry is changing for the better after cost-cutting measures were implemented, resulting in a 10% increase in revenue.

7. Cronos Group

Cronos earned a highly respected reputation as one of the earliest Canadian cannabis companies to make it on the US exchange, but its biggest boost came when 45% of the company was bought by Altria, a prosperous tobacco giant that lent enough financial backing to send the pot stock soaring in 2018. Since a delay in reporting its quarterly financials, Cronos hasn’t done that well on the stock market, but after a $2.4 billion investment, it’s hard to say what the future has in store.

8. Auxly Cannabis Group

Auxly is a vertically integrated company with locations all over Canada and headquarters in the hub of Toronto, Ontario. With several brands under its belt including Black Forty, Kolab Project, Dosecann and Robinsons, it’s one of the top-selling companies for edibles, topicals, and vapes, and its revenue streams just keep growing. Some analysts predict a return of 67% in one year time for investors who buy in now, so if you’re looking for guaranteed to pay cannabis stocks, you’re going to want to add this one to your portfolio.

9. Village Farms International

The BC-based Village Farms International might not be one of the most well-known names in the game, but it certainly has positioned itself in a powerful way, with partnerships in Canada, the US and Mexico. Just last year, the company took over the remaining half of Pure Sunfarms, now owning 100%, and ever since then, they’ve delivered consistently improving revenues and sold the driest flower in the Canadian market. With strong moves and a focus on high-quality products, it’s set up to be an excellent choice for investors.

10. High Tide

High Tide was founded in Calgary, and the company now owns more than 100 dispensaries spread out across Alberta, Manitoba, Ontario, and Saskatchewan. Its move to a discount club, bringing in paying members who get access to affordable prices, is hitting it off in Canada, and though High Tide’s gross revenue has decreased slightly, the company is reporting higher than ever sales at the store level, suggesting a bright and beautiful future in the cannabis industry.

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