The marijuana industry is among the fastest growing in North America, and it’s certainly turning heads among investors. Most marijuana stocks with a market cap in excess of $200 million have seen their share prices rise by at least 100% over the trailing year on account of optimism surrounding the green rush.
But what investors have to realize is that no two pot stocks are exactly the same. Assuming the industry is allowed to bud, certain cannabis stocks should outperform others over time. The challenge for investors is locating marijuana stocks that are expected to sport the highest operating margins. Higher operating margins would mean the ability for a company to generate more profit from the same amount of revenue than its peers. That’s the type of company marijuana-stock investors should consider looking into.