What Is the Nasdaq's Best Cannabis Stock?
Cannabis stocks have been surging of late as optimism is running high about possible regulatory reform. There aren't many pot stocks on the , but I'm going to review and compare three of the biggest names on there to see which one is the best buy. Here's a closer look at Tilray Brands (NASDAQ: TLRY), Canopy Growth (NASDAQ: CGC), and SNDL (NASDAQ: SNDL), and whether you should consider investing in these businesses.
The cannabis industry attracts many growth investors simply because of the potential as the market grows. The stocks on this list, however, are all Canadian-based marijuana companies -- due to the federal ban on pot in the U.S, no multi-state marijuana operator is able to trade on the Nasdaq. And with a smaller and much more competitive pot market in Canada, growth isn't easy to achieve these days. As a result, these companies have been looking at other ways to open up more opportunities for themselves. Here's a quick comparison of their approaches:
In recent years, valuations for pot stocks have been crumbling due to a lack of progress toward federal marijuana legalization. Paying huge premiums for these businesses simply isn't the norm, as the growth has been underwhelming and investors are more skeptical about the prospects for legalization. The most expensive stock of the three is Tilray, but it's still trading at a fairly modest 3 times revenue.
Source Fool.com
