Cannabis stocks could see a massive rally this year.
So far, over the last few weeks:
- Canopy Growth (CGC) ran from $25 to $32
- Aurora Cannabis (ACB) ran from $8.50 to $10.92
- Tilray (TLRY) ran from $8.50 to $12.51
- Aphria Inc. (APHA) ran from $7 to $9.12
- ETFMG Alternative Harvest (MJ) ran from $14.50 to $17.42
But that may only be the start.
With Joe Biden heading to the White House, and Democrats in charge of Congress, we could see legalization efforts.
“With the Democrats likely taking control of the U.S. Senate, the backdrop for U.S. cannabis is now far more constructive than our base case had assumed,” said Cowen cannabis analyst Vivien Azer, as quoted by Yahoo Finance. In addition, Piper Sandler analyst Michael Lavery added that Democratic control of the Senate, “could help provide better access to capital, alleviate operating headwinds, and help drive industry growth.”