Cannabis stocks are continuing to rise on good news about legalization.
Over the last month, Canopy Growth (NYSE:CGC) is up 239%, Aurora Cannabis (NYSE:ACB) is up 127%, SNDL (NASDAQ:SNDL) is up 81%, Tilray Brands (NASDAQ:TLRY) is up 68%, and Cronos Group (NASDAQ:CRON) is up 42%.
The good news is broadly based. Germany has recreational cannabis. Canada is debating on legal cannabis. A Florida court .
It’s even appearing on the U.S. presidential campaign trail.
Is It 4/20 Yet?
Progress is appearing just before April 20, considered by pot smokers.
Five years ago, cannabis stocks were on a high after Canada legalized recreational use. It was assumed other states and the U.S. government, would quickly follow.
Progress was slow, however. While big states like California, Illinois, and New York moved toward legalization, demand was taken by illegal growers with lower costs. This makes the move by Canada especially important. Illegal growers still control of the market there.
The 2024 election has created in pot’s direction. The Biden administration wants the Drug Enforcement Administration (DEA) to the “Class One” schedule, where it’s considered more dangerous than fentanyl. Vice President Kamala Harris has been on the campaign trail.
Republicans are . Virginia Governor Glenn Youngkin a legalization bill. Florida Governor Ron DeSantis has legalization there.
While legal pot sales are growing, asset write-offs have made profits elusive for the big growers. Tilray lost in 2023 on sales of $627 million. Canopy Growth lost on sales of $403 million. Cronos lost on sales of $117 million.
Cannabis Stocks: What Happens Next?
Investors looking for pot profits might check out some under-the-radar plays identified recently by fellow InvestorPlace contributor Omor Ibne Ehsan. Many are penny stocks , like Cresco Labs (OTCMKTS:CRLBF).
On the date of publication, Dana Blankenhorn did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
