California and five other states will vote on whether to legalize recreational marijuana this November. In addition, Arkansas and Florida will vote on whether to legalize marijuana for medical purposes. 

Marijuana usage is on the rise. 

Consider that over the last 30 days, the S&P 500 has fallen 2.5% from 2,186.5 to 2133. Yet over that same period, the North American Marijuana Index increased 42%. Investors might want to add marijuana stocks to their portfolios. 

Canopy Growth (CGC.TO) and Aurora Cannabis (ACBFF) are two of the 23 constituents that form the Marijuana Index. These companies already have racked up market-beating gains, which will continue in November and beyond if marijuana legalization is successful. Watch these stocks and be ready to buy on dips as volatile markets head into earnings season.

A vote to legalize in California and Florida could have a major impact nationally on the industry. California has over 12% of the total U.S. population. Florida is the country's third most populated state at 6.3%. 

Legalization in Florida was narrowly defeated in 2014 by 2%.

Arizona and Massachusetts, which have encountered pushback from anti-legalization groups, and Maine and Nevada are other states weighing legalization.

Canopy Growth

Canopy Growth on Monday announced that it would continue to work with XIB Consulting, which consults on corporate initiatives like acquisitions, networking, and market awareness.

In partnership with rapper Snoop Dogg's "Leafs" brand, Canadian-based Canopy Growth is ready to roll out three new strains of marijuana across Canada by the end of the month. That's exciting news for the recreational marijuana user in Canada but what does it mean for the company's earnings? The answer decides whether investors should expect significant share price gains.

Snoop's endorsement would give Canopy Growth an edge against its Canadian peers once recreational markets become available. This advantage would become especially pronounced once Canadian marijuana producers start looking to recreational markets in the United States.

Although Canopy Growth hasn't been profitable in the last three quarters, its sales growth is attractive. Over the last nine quarters the company's total sales have grown on average 57% per quarter from $176,000 in the second quarter of 2014 to $5.38 million in the same period for 2016.

Aurora Cannabis

Canadian cannabis producer, Aurora Cannabis is one of the only producers turning a profit at $427,000 and $1.95 million, respectively in the fourth quarter of 2015 and the first quarter of 2016.

Aurora Cannabis achieved two major milestones in the last 30 days that you would expect of a budding young growth stock. First, the company's shares were moved to the Toronto Stock Exchange's Venture Exchange. CEO Terry Booth said that this milestone reflects "remarkably rapid operational and commercial progress."

Second, the company announced on Monday that it would issue up to $25 million in convertible debt. Booth said that this offering makes Aurora one of the "best capitalized companies, with one of the strongest balance sheets in the cannabis sector."

Following the offering, the company will convert $10 million of pre-existing convertible debt into about 8.7 million shares of stock. The dilution of the company's outstanding shares is currently providing investors with an opportunity to buy the stock below $1.70.

---

As we've just explained, these three companies could become big winners if November turns out to be a successful month for marijuana legalization. If you're looking for other growth opportunities, we've found a genius trader who turned $50,000 into $5 million by using his proprietary trading method. For a limited time, he's guaranteeing you $67,548 per year in profitable trades if you follow his simple step-by-step process. Click here now for details.

The author is an independent contributor to TheStreet.com. At the time of publication, he owned none of the stocks mentioned.