© Reuters. 2 Cannabis Stocks That Were Recently Upgraded
A flurry of positive news releases related to state-level marijuana legalization and significant progress on cannabis reform at the federal level are making analysts optimistic about the upside potential of several fundamentally sound stocks in the cannabis sector. For example, the industry’s promising outlook has encouraged analysts to upgrade Canopy Growth (NASDAQ:) and Tilray (NASDAQ:). So, let’s discuss.With Amazon Inc. (NASDAQ:) now actively supporting The Marijuana Opportunity Reinvestment and Expungement Act of 2021 (MORE Act)—federal legislation that would decriminalize cannabis at the federal level and enact criminal and social justice reforms—cannabis stocks are once again grabbing the limelight. On June 1, in a blog post, Amazon’s worldwide consumer division CEO Dave Clark said, “We hope other employers will join us, and that policymakers will act swiftly to pass this law.”
Support for marijuana legalization is at an all-time high now. Last month, Jerry Nadler, the U.S. House Judiciary Committee Chairman, reintroduced the MORE Act amid a strong cry for federal level reform from social justice advocacy groups and growing support for marijuana legalization at the state level. This, along with the U.S. Drug Enforcement Administrations’ recent announcement that it would be issuing licenses to several cannabis growing facilities, has made analysts extremely optimistic about the industry’s growth prospects.
Furthermore, analysts recently upgraded the ratings of prominent cannabis players Canopy Growth Corporation (CGC) and Tilray, Inc. (TLRY). And we think their diverse product portfolios and expansive distribution networks should help the stocks to deliver solid returns in the near term.
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