The Toronto Stock Exchange recently unveiled four cannabis companies on its inaugural TSX30 list for 2019, which features the hottest growing stocks on the exchange over the past three years.
The four licensed pot producers not only made the list, but were ranked in the top eight in terms of stock performance.
The ones that made it
On the top of the list was industry-leading Canopy Growth Corp. (NYSE:CGC)(TSX:WEED), with returns of 1,823 per cent for the three-year period. Canopy has been the marquee pot stock not only in Canada but globally as well, becoming an international pot icon.
Third on the list was Village Farms International Inc. (TSX:VFF). Its Pure Sunfarms joint venture has helped the company achieve significant growth. Costs remain among the lowest in the industry which generated strong numbers on the company’s top and bottom lines. Village Farms continues to expand with its conversion of its Delta 2 greenhouse facility, which will double the company capacity and produce 150,000 kg of pot annually. That’s made investors bullish on the stock, with Village Farms rising 868 per cent over the past three years.
Rolling in at number six is Aphria Inc. (NYSE:APHA)(TSX:APHA). Although the company hasn’t had the best year, it has still come a long way since 2016. It is among the top cannabis companies in the world with fourth quarter sales reaching $128.6 million. The company also turned a $15.8 million profit — a rare feat in the industry. Overall, it’s been in the black in three of the past four quarters and has been one of the more consistent cannabis companies in terms of posting a profit. In three years, its share price has risen by 479 per cent.
In eighth place, and as the final pot stock to make the list, is Neptune Wellness Solutions (NASDAQ:NEPT)(TSX:NEPT). While not a typical cannabis producer, the extraction company has a strong track record in wellness products. The stock took off last year when Neptune announced it had secured a multi-year agreement with Canopy. Neptune could be a key player in the edibles market in Canada and its share price has risen 322 per cent.
Aurora’s noticeably absent
Investors may be surprised Aurora Cannabis Inc. (NYSE:ACB)(TSX:ACB) didn’t make the list. It wasn’t the lack of returns that kept Aurora off the list—its stock rose more than 2,000 per cent which should have placed it at the top of the list. Unfortunately, because the stock was trading below $0.50 on June 30, 2016, it did not meet the strict criteria of the TSX30.
The criteria includes being listed on the TSX for three years—or if graduated from the TSXV to have spent at least one of the three years on the TSX; and the stock needs to have a market cap of at least $50 million as of June 30, 2016, as well as an adjusted share price of at least $0.50 at that time.
