The marijuana sector may have gone through a lot of trouble over the past months, but it cannot be denied that in the long-term, it is almost certainly going to grow into a significantly large sector. This is the sort of situation investors may want to have a look at some of the cheap marijuana stocks. Since there is potential for explosive growth in this sector, there are going to be currently cheap marijuana stocks that could end up generating huge returns for investors in the long run.

However, it is also important to keep in mind that a nascent sector with high growth potential is bound to go through a period of trouble. Unprofitability and growth issues may plague businesses for some time before sustained growth comes along. Still, investors who managed to unearth the winners in the sector can often stand to make enormous gains in the long-term.

Here is a look at 3 cheap marijuana stocks with promise that investors could add to their watch lists:

3 Cheap Marijuana Stocks: Aphria Inc (TSX:APHA) (NYSE:APHA)

cheap marijuana stocks

Investors could consider having a closer look at Aphria stock if they are looking for cheap marijuana stocks. It is one of the more promising cannabis growers in the industry, and tomorrow, the company is going to release its fiscal third-quarter results for the period ended February 29.

Analysts believe that the revenue for the third quarter is going to be C$130.6 million. That reflects a year-on-year rise of 77.3% and a rise of 8.3% from the previous quarter. At this point in time, the company operates a total of five brands, and experts believe that sales will rise in the quarter. The reason for the expected rise in sales lies in the launch of cannabis 2.0 products, which were legalized in Canada last year.

Analysts also expect Aphria to keep improving its EBITDA in this quarter. EBITDA expectations have been pegged at C$4.18 million, which reflects a significant rise of 52.1% from the previous quarter. Aphria has grown by leaps and bounds, which is why it has emerged as one of the more promising cheap marijuana stocks in recent times.

Aphria stock has rebounded about 70% since mid-March.

3 Cheap Marijuana Stocks: Organigram Holdings (TSX:OGI) (NASDAQ:OGI)

One of the companies that have been flying under the radar in the cannabis sector is Organigram. Like many other cannabis stocks, Organigram has also declined over the past 12 months, giving up nearly 63% of its value. However, these declines have little to do with the fundamentals of the company’s business. The current levels of Organigram stock could well prove to be a rare buying opportunity for investors looking for promising cheap marijuana stocks.

One of the most important things to point out about Organigram is that the company runs one of the most efficient operations in the industry. It has emerged as a major marijuana grower and has done so by clocking the lowest cost of production in the industry.

The company also boasts of a strong balance sheet at a time when many marijuana companies are facing major liquidity issues. There are a range of factors that could work in favor of Organigram in the long run. Investors who are currently looking for a promising marijuana company that could generate significant growth in the long-term could consider having a closer look at Organigram stock.

3 Cheap Marijuana Stocks: Planet 13 Holdings (CSE:PLTH) (OTCQB:PLNHF)

cheap marijuana stocks

Another interesting proposition for investors looking for cheap marijuana stocks is Planet 13 stock. The company has taken cannabis retail to a new level by establishing its ‘superstore’ in Las Vegas.

The store in question offers LED floors, a 3D visual experience, an orb show, water feature, and laser art devices, in addition to other distinctive features. It managed to grow its sales significantly over the past year, but the coronavirus pandemic has put a spanner in the works for Planet 13. Since its superstore is now closed, the stock has declined considerably and is down by 48% this year so far.

Planet 13 stock is now trading at just above $1, so it could still prove to be a decent opportunity for investors looking to buy into promising marijuana companies. The sales at Planet 13 made up as much as 9% of the total marijuana sales in the state of Nevada, which is a strong reflection of the sort of promise the company holds.

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