Posted in Marijuana Investments

Cannabis Stocks: Why TLRY, ACB, CGC, APHA and SNDL Stocks Are Surging Wednesday

 Posted by  Posted on February 3, 2021

a close up of a green leaf: Cannabis leaf on dollar bill © Source: Shutterstock Cannabis leaf on dollar bill

Cannabis stocks are heading higher on Wednesday as investors hope for the national legalization of the drug.

Cannabis leaf on dollar bill © Provided by InvestorPlace Cannabis leaf on dollar bill

The positive movement for cannabis stocks comes as Senate Majority Leader Chuck Schumer calls for new legislation that would decriminalize marijuana. The politician also wants legislation “that will lift up people who were unfairly targeted in the War on Drugs.”

While there’s been talk of national legalization of marijuana in the past, it’s never come to fruition. However, that could change with Democrats in control of the Senate. Adding to that is some Republication Senators supporting legalization of the durg,

Gallery: 4 Marijuana Stocks Set for Another Big Increase (InvestorPlace)

a table topped with lots of green leaves: [Editor’s note: This article is regularly updated to include the most relevant information available.] You hear that? That's the sound of the beginning of a big rebound in marijuana stocks. Over the past few trading days, the ETFMG Alternative Harvest ETF (NYSEARCA:MJ) is already up nearly 5%, representing one of biggest upward moves the beaten-down ETF has staged over the past year. The big rebound in pot stocks can be chalked up to a few things. There have been some favorable fundamental developments, as multiple cannabis companies have reported better-than-expected numbers in January and February. There have also been some favorable legal developments, as more and more U.S. states continue to push forward with cannabis legalization while Canadian provinces are adopting a more aggressive approach to retail store openings. That's the good news for cannabis bulls. The better news? This big rebound in marijuana stocks is just getting started. Over the next several quarters, everything is going to improve for the cannabis sector. Demand trends will re-accelerate thanks to new vapes and edibles products, as well as retail footprint expansion. Supply overhang issues will ease with rebounding demand. International markets will start to take off as governments around the world follow in Canada's footsteps. Revenue growth trends will improve. Margins will bounce back. Losses will narrow. All in all, things will just get better for the cannabis sector in 2020, and as they do, depressed and beaten-up pot stocks will rebound. Among the best marijuana stocks to buy for 2020 are: Canopy Growth (CGC) Cronos (CRON) Aphria (APHA) Aurora Cannabis (ACB) The Top 5 Dow Jones Stocks to Buy for 2020 So, without further ado, let's take a deeper look at those four top marijuana stocks to buy for the big 2020 rebound.

If this all works out, it could result in President Joe Biden signing a bill on marijuana. The President has previously said he doesn’t support full legalization but would be up for letting states decide. That means any legislation from Congress will likely go this route, reports MarketWatch.

With this recent news in mind, it only makes sense that cannabis stocks would be on the rise as investors pick up more shares of the stocks. Those seeing especially strong movement today include Tilray (NASDAQ:TLRY), Aurora Cannabis (NYSE:ACB), Canopy Growth (NASDAQ:CGC), Aphria (NASDAQ:APHA), and Sundial Growers (NASDAQ:SNDL).

TLRY stock was up 18.2%, ACB stock was up 7.6%, CGC stock was up 7.2%, APHA stock was up 14.8%, and SNDL stock was up 23.1% as of Wednesday morning.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Author: CSN