Marijuana stocks have inspired a new generation of investors to look more closely at the stock market, and the budding industry has seen a lot of activity recently. In just the past year, the legalization of recreational marijuana across Canada has been a trigger point for explosive growth among some of the largest cannabis companies in the world. Ongoing efforts to make pot legal across the U.S. have also drawn attention to the industry, leading investors to try to identify those companies most likely to take full advantage of the coming opportunity in cannabis.
If you think the broad-based stock market is on fire, then you obviously haven't been paying close enough attention to the legal cannabis industry. This year alone, marijuana stocks have run circles around the S&P 500 in terms of total return, and marijuana's "Big Three" -- Canopy Growth, Aurora Cannabis, and Cronos Group -- have all delivered huge quadruple-digit-percentage gains since the beginning of 2016.