Marijuana is one of the fastest-growing industries on the planet right now, with sales of $12.2 billion in 2018 that are forecast grow by four to six times by 2029/2030, depending on the source of the estimate. That's a double-digit compounded growth rate over the next decade, which builds on the double-digit sales growth rate we've witnessed for much of this decade from cannabis.
But what you might find surprising is that, despite premium valuations throughout much of the industry on the heels of this rapid growth rate, marijuana value stocks do exist. There are three pot stocks right now -- all of which are small caps (i.e., under $2 billion market cap) -- that have a lower forward price-to-earnings ratio than the broad-based S&P 500, which was 17.26 as of Friday, June 14, according to data from The Wall Street Journal. That's saying something given the exceptionally high growth rate of cannabis stock compared to the broader market.
If you've been eyeing marijuana stocks, but consider yourself more of a value investor, here are three companies to consider buying.