The Motley Fool

3 Marijuana Stocks That Have Risen Over 1,000% Since Their IPOs

Image source: Getty Images

Marijuana stocks have arguably been the biggest TSX success story over the past three years. Rising dramatically in the markets and growing sales at triple digits year over year, weed producers have outperformed the benchmark by a spectacular margin. Last year, the hype surrounding marijuana legalization sent weed stocks to unprecedented highs, as investors rushed to capitalize on the sales boost that would inevitably result from recreational sales.

As a result, weed stocks have reached truly impressive valuations. Not only are they up dramatically, but they’re even being included in “large-cap” indices like the TSX 60, making them among the biggest companies in Canada.

It’s clear that weed stocks as a whole have come a long way. A handful, however, have risen to become the clear “stars” of the sector, outperforming the others by leaps and bounds. The following are the three that have seen the frothiest gains.

Canopy Growth

What could be said about Canopy Growth (TSX:WEED)(NYSE:CGC) that hasn’t been said already? With over $97 million in quarterly revenue, it’s the biggest marijuana producer by sales and market cap — although competitors are not too far behind.

Canopy’s success comes down to a few key factors. First, it was a relatively early entry into the legal weed industry, giving it a kind of first-mover advantage. Second, it has received massive amounts of funding from bigger companies. Third, it has the best retail presence of any weed producer, with a line of Tweed-branded stores that are becoming an increasingly common sight nationwide.

Its stock is up 1,710% since it first opened on the TSX just five years ago.

Aurora Cannabis

Aurora Cannabis (TSX:ACB)(NYSE:ACB) is the second-biggest marijuana producer after Canopy, with $75 million in quarterly revenue. At one point, it actually surpassed Canopy’s quarterly sales, but its competitor quickly reclaimed the crown.

Aurora is a company that’s investing big in partnerships, acquisitions, and new grow space — all of which help it to move product in the fast-growing legal marijuana market. Particularly interesting is the company’s partnership with the UFC, which could raise brand awareness among a large and growing target demographic (MMA viewers).

Aurora’s stock is up an astounding 34,100% since it first started trading on the TSX.


Aphria (TSX:APHA)(NYSE:APHA) is one of Canada’s most controversial marijuana producers. When a short-seller released a report last year accusing the company of cheating investors, its stock tanked. However, the company soon recovered, after a management shakeup and a thwarted hostile takeover bid.

Aphria has attracted some heat over the years for allegedly paying too much for low-value acquisitions. But whatever you think of Aphria’s M&A strategy, one thing is certain: it hasn’t hurt on the revenue front. In its most recent quarter, Aphria grew sales by 617% year over year, putting it within striking distance of Aurora. Additionally, the company has a long-term investment portfolio that has contributed to its intermittently strong profits. Aphria was one of the first weed producers to post positive earnings, and its long-term stock portfolio was a big part of that achievement.

Aphria’s stock is up 1,128% since it started trading on the TSX.

Just Released! 5 Stocks Under $49 (FREE REPORT)

Motley Fool Canada's market-beating team has just released a brand-new FREE report revealing 5 "dirt cheap" stocks that you can buy today for under $49 a share.
Our team thinks these 5 stocks are critically undervalued, but more importantly, could potentially make Canadian investors who act quickly a fortune.
Don't miss out! Simply click the link below to grab your free copy and discover all 5 of these stocks now.

Claim your FREE 5-stock report now!

Fool contributor Andrew Button has no position in any of the stocks mentioned.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.

I consent to receiving information from The Motley Fool via email, direct mail, and occasional special offer phone calls. I understand I can unsubscribe from these updates at any time. Please read the Privacy Statement and Terms of Service for more information.