Over the past year, marijuana stocks have provided some of the best opportunities for quick gains on the TSX. Although these stocks have been extremely volatile, with steep upswings and downswings, it’s precisely these dramatic swings that provide the best opportunities for quick profits. Top marijuana stocks have beta coefficients as high as 4. With volatility like that, it’s very easily to make–and lose–money.
Make no mistake: any investment that has the power to double your money quickly can also do the exact opposite. At the same time, the recent upswing in marijuana stock prices has been fairly consistent, indicating that perhaps these stocks are beginning to stabilize.
Without further ado, here are three marijuana stocks that could rapidly increase your TFSA money.
CannTrust Holdings Inc (TSX:TRST)(NYSE:TRST)
CannTrust Holdings is among the most profitable of marijuana producers. It had positive net and operating income in all of the past four quarters, making it one of the few marijuana companies to have achieved this milestone. In its most recent quarter, CannTrust had about $400,000 in net income, $12 million in revenue, and 1.3 million kilograms of cannabis sold (at a cost of $8 per gram). The stock has also been on a tear in the markets, up 76% year-to-date as of this writing.
Organigram Holdings (TSXV:OGI)
Organigram Holdings is one of the lesser-known marijuana stocks out there, but that doesn’t stop it from providing investors with frothy returns. Up 52% year-to-date, it’s been one of the stronger marijuana stocks this year. Over the past year, the company has had consistently positive net and operating income, which makes it one of the few truly profitable marijuana companies, along with CannTrust. Organigram’s stock trend has been unambiguously positive this year, and it has the earnings to back it up.
Canopy Growth Corp (TSX:WEED)(NYSE:CGC)
Last but not least, we get to Canopy Growth.
Canopy is the largest marijuana stock by revenue and market cap. Unlike CannTrust and Organigram, it doesn’t have a consistent track record of positive earnings. What it does have is strong revenue: clocking in at $83 million in its most recent quarter, it grew by 282% year-over-year. Also in that quarter, the company’s earnings technically jumped 4000%; however, that was mostly due to financing factors, not operations. The company’s operating loss did get smaller in Q3 compared to Q2, which indicates that this company is getting its financial house in order.
Regardless, Canopy has provided investors with tons of opportunities for quick gains, both short and long. So far this year, it’s up 59%, while last year, it gained as much as 130% before falling again in the Winter. Canopy Growth has been a wild ride for its investors, and assuming the present earnings trend continues, it’s quite likely that the trajectory will mainly be upward from here on.
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Fool contributor Andrew Button has no position in any of the stocks mentioned.