Everyone talks about how much the cannabis industry is going to grow over the next few years. But there are quite a few cannabis stocks that are delivering impressive sales growth right now.
I looked at the trailing-12-month revenue growth for the stocks of all cannabis-related companies with a market cap of at least $200 million. Here are the three stocks with the fastest-growing sales — and whether they’re smart picks to buy right now…
1. GW Pharmaceuticals
Before GW Pharmaceuticals (NASDAQ:GWPH) launched Epidiolex, some questioned if the company could really be successful with its new cannabidiol (CBD) drug. GW has answered those questions with an exclamation mark. The cannabinoid-focused biotech’s trailing-12-month revenue has skyrocketed by 758% over the last year.
The company has blown away sales estimates in every quarter since Epidiolex hit the U.S. market late last year. Epidiolex continues to pick up momentum, generating twice the sales in the second quarter than it did in the first quarter of 2019.
GW hasn’t encountered significant problems with payers. Around 93% of Americans with commercial, Medicaid, or Medicare health plans have coverage for Epidiolex. Physicians are lining up to prescribe the drug, with more than 2,500 physicians prescribing Epidiolex since its launch. GW also stated in its Q2 update that most of the 12,000 patients who have received Epidiolex are still taking the therapy.
You might call Aphria (NYSE:APHA) the “comeback kid” of Canadian cannabis producers. The company went through some trying times in 2018 and early this year. But Aphria’s trailing-12-month revenue growth of 417% is the best in its industry.
Aphria actually reported disappointing sales results for its third quarter of fiscal 2019 in April. The main problem was the company’s limited production capacity. This wasn’t a serious issue in Q4, though, with Aphria announcing sales growth of 158% quarter over quarter in the adult-use recreational marijuana market.
However, the biggest factor behind Aphria’s tremendous sales growth isn’t coming from its Canadian operations. Aphria’s acquisition earlier this year of German medical cannabis and pharmaceutical distributor CC Pharma is the primary driver of its sales growth. In the fourth quarter, CC Pharma contributed more than three-fourths of Aphria’s total revenue…
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