Cannabis stocks just had one of their best weeks of the year. Many of our favorite stocks delivered huge gains in the last five days.
- Canopy Growth Corp (CGC) gained 27% this week.
- Curaleaf Holdings (CURLF) gained 19%.
- Green Thumb Industries (GTBIF) gained 18%.
- Cresco Labs (CRLBF) gained 16%.
Take a look at the big gains below.
These big gains shouldn’t come as a big surprise to anyone who has been reading my newsletter updates for the last few months.
The U.S. presidential election is a huge catalyst for cannabis stocks because four more states are voting on legalization. Pennsylvania governor Tom Wold has also recently signaled that legalizing cannabis is a high priority and a way to make up for tax losses due to COVID-19.
As we move closer to the election It looks like a lot of capital is starting to flood into cannabis stocks
Here is a report I wrote, explaining why this is the biggest event for the U.S. cannabis industry since the 2016 U.S. presidential election when eight states voted to legalize cannabis.
After the recent gains, cannabis stocks have seen a huge rebound off the COVID-19 lows. I have been recommending and buying these stocks for my clients ever since the March lows and this is turning out to be a great time to buy.
For example on May 18 I sent out a newsletter telling my clients that cannabis stocks had reached a long-term low and recommended taking a fresh look at the sector. Here is a link below if anyone wants to review.
This is how much these stocks are up since the March low.
- Canopy Growth Corp (CGC) is up 94% from the March low.
- Curaleaf Holdings (CURLF) is up 203%.
- Green Thumb Industries (GTBIF) is up 294%.
- Cresco Labs (CRLBF) is up 229%.
Take a look at the big rebound in the last six months in the chart below.
charts from tradingview.com
After these gains potential investors are asking an important question. Is it too late to buy cannabis stocks?
Many of the most promising cannabis stocks are still trading well below the 52-week high.
Secondly, I am expecting the sector to be strong for the rest of the year as investor enthusiasm is driven by the U.S. election when four states vote whether to legalize. Expect the cannabis industry to get a lot of attention from the mainstream and financial media in the next few months and that should be good for these stocks.
The Big Picture
Cannabis stocks are heating up as we move closer to the election. Despite the recent gains many of the most promising cannabis stocks are still trading below the 52-week high. Looking forward I am expecting a strong finish to the year as the election fuels interest in the sector.
Disclaimer: This report is for entertainment purposes only. Every investor should consult with an investment advisor before making investment decisions. The Vodicka Group, Inc. is not a broker/dealer. We do not receive compensation for mentioning stocks. At various times, the clients, publishers and employees of Vodicka Group, Inc., may buy or sell the securities discussed for purposes of investment or trading. Author Michael Vodicka owns shares of Cresco Labs (CRLBF), Canopy Growth Corp (CGC), Green Thumb Industries (GTBIF), Curaleaf Holdings (CURLF).