MEDIF - 5 of the Cheapest Pot Stocks Under $5
As of 2018, legal cannabis was a nearly $11 billion industry, at least according to sales figures published by Arcview Market Research and BDS Analytics in their annual State of the Legal Cannabis Markets report. But according to Wall Street, it could be a $50 billion, $75 billion, or even $200 billion worldwide industry in a decade. This is what makes owning marijuana stocks so exciting.
But as is often the case, the best long-term investments aren't the companies with the largest market caps. Rather, it's the potentially undiscovered gems in the marijuana industry that are small caps or hovering well below Wall Street's radar that are liable to deliver the strongest long-term gains.
Using the most basic fundamental metric of all, the forward price-to-earnings (P/E) ratio, I screened for the cheapest pot stocks currently trading for less than $5 a share. Ultimately, five emerged as having a lower forward P/E ratio than the broad-based S&P 500, despite a considerably faster long-term growth rate.