Three Stocks to Watch in the U.S. Cannabis Market
According to Timothy Sykes, now is the time to look closer at the opportunities in smallcap cannabis stocks. Alaska, Colorado, Washington, Oregon, and the District of Columbia have all legalized the sale of recreational marijuana, and many more jurisdictions are about to follow suit. Canada has also changed medical marijuana laws starting on April 1, 2014, creating a $3.4 billion opportunity.
With these aforementioned factors, Sykes sees big potential for investors.
He cites three companies as being interesting to watch on the US cannabis market specifically: GW Pharmaceuticals (GWPH), American Green Inc. (ERBB), and Cannabis Science (CBIS). The market caps are $1.5 billion, $33 million, and $57 million respectively.
With more states legalizing recreational use and the new medical marijuana scheme in Canada, the industry is set to continue legitimizing, gaining more blue chip companies. However, in the interim, there are still some illegitimate companies on the horizon that are worth keeping a close eye on to avoid.
Original graphic from: Timothy Sykes
The Biggest Companies in the World in 2021
The 100 biggest companies in the world were worth a record-breaking $31.7 trillion as of the end of Q1, up 48% year-over-year.
The Biggest Companies in the World
View the high-resolution of the infographic by clicking here.
Since the COVID-19 crash, global equity markets have seen a strong recovery. The 100 biggest companies in the world were worth a record-breaking $31.7 trillion as of March 31 2021, up 48% year-over-year. As a point of comparison, the combined GDP of the U.S. and China was $35.7 trillion in 2020.
In today’s graphic, we use PwC data to show the world’s biggest businesses by market capitalization, as well as the countries and sectors they are from.
The Top 100, Ranked
PwC ranked the largest publicly-traded companies by their market capitalization in U.S. dollars. It’s also worth noting that sector classification is based on the FTSE Russell Industry Classification Benchmark, and a company’s location is based on where its headquarters are located.
Here is the top 100 ranking of the biggest companies in the world, organized from the biggest to the smallest.
|Rank||Company name||Location||Sector||Market Capitalization|
|1||APPLE INC||🇺🇸 United States||Technology||$2.1T|
|2||SAUDI ARAMCO||🇸🇦 Saudi Arabia||Energy||$1.9T|
|3||MICROSOFT CORP||🇺🇸 United States||Technology||$1.8T|
|4||AMAZON.COM INC||🇺🇸 United States||Consumer Discretionary||$1.6T|
|5||ALPHABET INC||🇺🇸 United States||Technology||$1.4T|
|6||FACEBOOK INC||🇺🇸 United States||Technology||$839B|
|8||TESLA INC||🇺🇸 United States||Consumer Discretionary||$641B|
|9||ALIBABA GRP||🇨🇳 China||Consumer Discretionary||$615B|
|10||BERKSHIRE HATHAWAY||🇺🇸 United States||Financials||$588B|
|12||VISA INC||🇺🇸 United States||Industrials||$468B|
|13||JPMORGAN CHASE||🇺🇸 United States||Financials||$465B|
|14||JOHNSON & JOHNSON||🇺🇸 United States||Health Care||$433B|
|15||SAMSUNG ELECTRONICS||🇰🇷 South Korea||Technology||$431B|
|16||KWEICHOW MOUTA||🇨🇳 China||Consumer Staples||$385B|
|17||WALMART INC||🇺🇸 United States||Consumer Discretionary||$383B|
|18||MASTERCARD INC||🇺🇸 United States||Industrials||$354B|
|19||UNITEDHEALTH GRP||🇺🇸 United States||Health Care||$352B|
|20||LVMH MOET HENNESSY||🇫🇷 France||Consumer Discretionary||$337B|
|21||WALT DISNEY CO||🇺🇸 United States||Consumer Discretionary||$335B|
|22||BANK OF AMERICA||🇺🇸 United States||Financials||$334B|
|23||PROCTER & GAMBLE||🇺🇸 United States||Consumer Staples||$333B|
|24||NVIDIA CORP||🇺🇸 United States||Technology||$331B|
|25||HOME DEPOT INC||🇺🇸 United States||Consumer Discretionary||$329B|
|26||NESTLE SA||🇨🇭 Switzerland||Consumer Staples||$322B|
|27||IND & COMM BK||🇨🇳 China||Financials||$290B|
|28||PAYPAL HOLDINGS||🇺🇸 United States||Industrials||$284B|
|29||ROCHE HOLDING||🇨🇭 Switzerland||Health Care||$283B|
|30||INTEL CORP||🇺🇸 United States||Technology||$261B|
|31||ASML HOLDING NV||🇳🇱 Netherlands||Technology||$255B|
|32||TOYOTA MOTOR||🇯🇵 Japan||Consumer Discretionary||$254B|
|33||COMCAST CORP||🇺🇸 United States||Telecommunications||$248B|
|34||VERIZON COMMUNICATIONS||🇺🇸 United States||Telecommunications||$241B|
|35||EXXON MOBIL CORP||🇺🇸 United States||Energy||$236B|
|36||NETFLIX INC||🇺🇸 United States||Consumer Discretionary||$231B|
|37||ADOBE INC||🇺🇸 United States||Technology||$228B|
|38||COCA-COLA CO||🇺🇸 United States||Consumer Staples||$227B|
|40||PING AN||🇨🇳 China||Financials||$219B|
|41||CISCO SYSTEMS||🇺🇸 United States||Telecommunications||$218B|
|42||AT&T INC||🇺🇸 United States||Financials||$216B|
|43||L'OREAL||🇫🇷 France||Consumer Discretionary||$215B|
|45||ABBOTT LABS||🇺🇸 United States||Health Care||$212B|
|46||NOVARTIS AG||🇨🇭 Switzerland||Health Care||$212B|
|47||NIKE INC||🇺🇸 United States||Consumer Discretionary||$209B|
|48||ORACLE CORP||🇺🇸 United States||Technology||$202B|
|49||PFIZER INC||🇺🇸 United States||Health Care||$202B|
|50||CHEVRON CORP||🇺🇸 United States||Oil & Gas||$202B|
|51||CHINA MERCH||🇨🇳 China||Financials||$196B|
|52||PEPSICO INC||🇺🇸 United States||Consumer Staples||$195B|
|53||SALESFORCE.COM||🇺🇸 United States||Technology||$195B|
|54||MERCK & CO||🇺🇸 United States||Health Care||$195B|
|55||ABBVIE INC||🇺🇸 United States||Health Care||$191B|
|56||BROADCOM INC||🇺🇸 United States||Technology||$189B|
|57||PROSUS NV||🇳🇱 Netherlands||Technology||$181B|
|58||RELIANCE INDS||🇮🇳 India||Energy||$180B|
|59||THERMO FISHER||🇺🇸 United States||Health Care||$180B|
|60||ELI LILLY & CO||🇺🇸 United States||Health Care||$179B|
|61||AGRICULTURAL BANK OF|
|62||SOFTBANK GROUP||🇯🇵 Japan||Telecommunications||$176B|
|63||ACCENTURE PLC||🇮🇪 Ireland||Industrials||$176B|
|64||TEXAS INSTRUMENT||🇺🇸 United States||Technology||$174B|
|65||MCDONALDS CORP||🇺🇸 United States||Consumer Discretionary||$167B|
|66||VOLKSWAGEN AG||🇩🇪 Germany||Consumer Discretionary||$165B|
|67||BHP GROUP LTD||🇦🇺 Australia||Basic Materials||$163B|
|68||WELLS FARGO & CO||🇺🇸 United States||Financials||$162B|
|69||TATA CONSULTANCY||🇮🇳 India||Technology||$161B|
|70||DANAHER CORP||🇺🇸 United States||Health Care||$160B|
|71||NOVO NORDISK||🇩🇰 Denmark||Health Care||$160B|
|72||MEDTRONIC PLC||🇮🇪 Ireland||Health Care||$159B|
|73||WULIANGYE YIBI||🇨🇳 China||Consumer Staples||$159B|
|74||COSTCO WHOLESALE||🇺🇸 United States||Consumer Discretionary||$156B|
|75||T-MOBILE US INC||🇺🇸 United States||Telecommunications||$156B|
|76||CITIGROUP INC||🇺🇸 United States||Financials||$152B|
|77||HONEYWELL INTL||🇺🇸 United States||Industrials||$151B|
|78||QUALCOMM INC||🇺🇸 United States||Technology||$151B|
|79||SAP SE||🇩🇪 Germany||Technology||$151B|
|80||BOEING CO||🇺🇸 United States||Industrials||$149B|
|81||ROYAL DUTCH SHELL||🇳🇱 Netherlands||Oil & Gas||$148B|
|82||NEXTERA ENERGY||🇺🇸 United States||Utilities||$148B|
|83||UNITED PARCEL||🇺🇸 United States||Industrials||$148B|
|84||UNION PAC CORP||🇺🇸 United States||Industrials||$148B|
|85||UNILEVER PLC||🇬🇧 United Kingdom||Consumer Staples||$147B|
|86||AIA||🇭🇰 Hong Kong SAR||Financials||$147B|
|87||LINDE PLC||🇬🇧 United Kingdom||Basic Materials||$146B|
|88||AMGEN INC||🇺🇸 United States||Health Care||$144B|
|89||BRISTOL-MYER SQB||🇺🇸 United States||Health Care||$141B|
|90||SIEMENS AG||🇩🇪 Germany||Industrials||$140B|
|91||BANK OF CHINA||🇨🇳 China||Financials||$139B|
|92||PHILIP MORRIS INC||🇺🇸 United States||Consumer Staples||$138B|
|93||LOWE'S COS INC||🇺🇸 United States||Consumer Discretionary||$136B|
|🇺🇸 United States||Telecommunications||$135B|
|95||CHINA MOBILE||🇭🇰 Hong Kong SAR||Telecommunications||$134B|
|96||SONY GROUP CORP||🇯🇵 Japan||Consumer Discretionary||$132B|
|97||ASTRAZENECA PLC||🇬🇧 United Kingdom||Health Care||$131B|
|98||ROYAL BANK OF CANADA||🇨🇦 Canada||Financials||$131B|
|99||STARBUCKS CORP||🇺🇸 United States||Consumer Discretionary||$129B|
|100||ANHEUSER-BUSCH||🇧🇪 Belgium||Consumer Staples||$128B|
Note: Data as of March 31, 2021.
Within the ranking, there was a wide disparity in value. Apple was worth over $2 trillion, more than 16 times that of Anheuser-Busch (AB InBev), which took the 100th spot at $128 billion.
In total, 59 companies were headquartered in the United States, making up 65% of the top 100’s total market capitalization. China and its regions was the second most common location for company headquarters, with 14 companies on the list.
Risers and Fallers
What are some of the notable changes to the biggest companies in the world compared to last year’s ranking?
Tesla’s market capitalization surged by an eye-watering 565%, temporarily making Elon Musk the richest person in the world. Food delivery platform Meituan and PayPal benefited from growing e-commerce popularity with their market capitalizations growing by 221% and 151% respectively.
Tech companies TSMC and ASML Holdings were also among the top 10 risers, thanks to a shortage of semiconductor chips and growing demand.
On the other end of the scale, Swiss companies Nestlé, Novartis, and Roche Holding were all among the bottom 10 companies by market capitalization growth. China Mobile was the only company to decline with a -12% change. The company was delisted from the New York Stock Exchange as a result of an executive order issued by former president Donald Trump, and recently announced its intention to list on the Shanghai Stock Exchange.
A Sector View
Across the 100 biggest companies in the world, some sectors had higher weightings.
|Sector||Total Market Cap in Top 100||% of Top 100 Market Cap||Number of Companies in Top 100|
Technology had the highest market capitalization and was also the most common sector, with Big Tech dominating the top 10. Companies in the consumer discretionary, financials, and health care sectors also had a strong representation in the ranking.
Despite having only five companies on the list, the energy sector amounted to almost 10% of the top 100’s market capitalization, mostly due to Saudi Aramco’s whopping valuation.
An Uncertain Recovery
From near market lows on March 31, 2020, all sectors saw increases in their market capitalization. However, top 100 companies in some sectors outperformed their respective industry index, while others did not.
Basic materials and industrials, both cyclical sectors, were high performers in the top 100 and outperformed their respective industry indexes. Technology companies also outperformed, and accounted for $255 billion or 31% of all shareholder distributions by the top 100, far more than any other sector. Apple alone spent $73 billion on share buybacks and $14 billion in dividends in the 2020 calendar year.
On the other hand, the worst-performing sectors in the top 100 were health care, utilities, and energy. While the index performance for health care and utilities was also relatively poor, the wider energy sector performed fairly well.
It’s perhaps not surprising that all sectors saw positive returns since their low levels in March 2020, buoyed by fiscal stimulus and central bank policies. As countries begin to reopen, will the value of the biggest companies in the world continue to climb?
Pandemic Recovery: Have BEACH Stocks Bounced Back?
BEACH stocks—bookings, entertainment, airlines, cruises, and hotels—were pulverized at the beginning of the pandemic. Here’s how they’ve bounced back.
Pandemic Recovery: Have BEACH Stocks Bounced Back?
The travel and entertainment industries have had a volatile ride over the last year.
During the initial stages of the pandemic, when panic and uncertainty ran rife, BEACH stocks–booking, entertainment, airlines, cruises, and hotels—were left scrambling. Collectively, $332 billion in market cap washed away.
Now, it appears the tide might be turning for these companies, buoyed by vaccine breakthroughs and glimmers of hope for a return to normalcy.
This infographic looks at the growth in market cap value across BEACH stocks one year from when the WHO officially declared COVID-19 a pandemic.
Washing Back to Shore?
BEACH stocks have gained a collective $376 billion in market cap in the year since the pandemic was declared, with about half the companies trading at their respective all-time highs.
In fact, about 70% of BEACH stocks have actually outperformed the S&P 500, which returned 43.7% during the same period.
|Company||Ticker||Category||Market Cap: 03/11/20 ($B)||Market Cap: 03/11/21 ($B)||Change|
|Alaska Air Group||ALK||Airlines||5.7||8.1||42%|
|Delta Air Lines||DAL||Airlines||29.1||30.9||6%|
|Caesars Entertainment||CZR||Casino & Hotel||2.2||20.8||824%|
|Norwegian Cruise Lines||NCLH||Cruise & Casino||4.3||10.9||151%|
|Royal Caribbean Cruises||RCL||Cruise & Casino||10.8||22.4||108%|
|Carnival||CCL||Cruise & Casino||16.4||31.8||93%|
|Penn National Gaming||PENN||Entertainment & Live Events||2.6||20.4||661%|
|Six Flags||SIX||Entertainment & Live Events||1.7||4.1||142%|
|Live Nation||LYV||Entertainment & Live Events||10.8||19.3||79%|
|The Walt Disney Co||DIS||Entertainment & Live Events||201.2||357.1||77%|
|Cedar Fair||FUN||Entertainment & Live Events||1.8||2.8||57%|
|Choice Hotels International||CHH||Hotels||4.5||5.9||30%|
|Marriott Vacations Worldwide||VAC||Hotels & Resorts||3.8||7.7||103%|
|Vail Resorts||MTN||Hotels & Resorts||7.1||13.4||88%|
|Park Hotels & Resorts||PK||Hotels & Resorts||3.4||5.3||58%|
|Wyndham Hotels & Resorts||WH||Hotels & Resorts||4.2||6.4||51%|
|MGM Resorts International||MGM||Resorts & Casino||10.2||19.3||89%|
|Wynn Resorts||WYNN||Resorts & Casino||9.7||15.9||64%|
|Las Vegas Sands||LVS||Resorts & Casino||40.7||48.2||18%|
BEACH Stocks Leaders and Laggards
When dissecting this basket of stocks by industry, it’s clear that much of the recovery story is lopsided. One reason for this, despite the pandemic, is that there are more granular, idiosyncratic trends occurring within these sectors.
Let’s look at what’s propelling the leaders, and dragging down the laggards:
Leading: Online Betting
There’s reason to be bullish on gambling stocks. Since late 2018, some 20 states have legalized sports betting, with more expecting to follow. Relative to other areas, the pandemic has been kind to gambling stocks. Many of those with an online presence have witnessed a spike in traffic, as more people continue to flock towards online betting.
Within the BEACH stocks basket, Penn National Gaming and Caesars Entertainment are clear outliers, having grown an epic 661% and 823% respectively. In addition, the broader industry (measured by the BETZ ETF) has nearly doubled the performance of the S&P 500 since its inception.
The return to normalcy will be much more delayed for airlines. Global RPKs, an industry metric, are not expected to reach pre-pandemic levels until 2024.
Actions of insiders also seem to match this negative sentiment. Warren Buffett, once a staunch supporter of airlines, decided to call it quits during the pandemic—dumping his entire position.
U.S. airline executives have collectively been selling their stakes much more aggressively than in the last few years. To add insult to injury, there’s significant shorting of airline stocks as well. At a short interest of 11.6%, American Airlines is most heavily shorted BEACH stock.
In a year where social interactions and gatherings have largely disappeared, so too has much of the business activity for hotels. For instance, Hilton sales suffered a 58% decline year-over-year.
But even without the pandemic, the hotel industry had their work cut out for them, through a growing and formidable competitor in Airbnb. Airbnb can scale its network beyond what any hotel can. This is evident in its room count, which is greater than the largest hotels combined.
More Bumps On The Road Ahead?
The investing landscape today looks to be disconnected from reality, in part because of the forward-looking nature of markets. Even though things are dire today, there’s a belief that light exists at the end of the tunnel.
But the path to recovery isn’t quite so linear. When the dust settles, it’ll become more apparent which industries will “return to normal” and which have set out permanently on a new trajectory.
Money4 weeks ago
Ranked: The World’s 25 Richest Millennial Billionaires
Markets1 month ago
Visualizing the Recent Explosion in Lumber Prices
Technology1 month ago
The World’s Top 50 Influencers Across Social Media Platforms
Datastream4 weeks ago
France’s Bernard Arnault Becomes the World’s Richest Person
Misc2 months ago
Figures of Speech: 40 Ways to Improve your Writing
Datastream1 month ago
The Bitcoin Crash of 2021 Compared to Past Sell-Offs
Markets2 weeks ago
The Biggest Companies in the World in 2021
Debt3 weeks ago
Visualizing the Snowball of Government Debt