The 3 Best Cannabis Stocks to Buy in May 2024

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Cannabis stocks are back in the spotlight and moving higher on news that the U.S. government is moving to reclassify the recreational drug and ease federal restrictions imposed on it.

The Biden administration has taken steps to reclassify cannabis, also known as marijuana, as a Schedule III substance. For more than 50 years, cannabis has been labeled as a Schedule I substance in America, the same category as hard drugs such as heroin and acid.

A move to Schedule III status would place cannabis alongside less harmful drugs and prescription medications such as Tylenol with codeine in it. News of the reclassification is being seen as a potential lifeline for cannabis companies and their shareholders.

Legalization of cannabis at the national level in America has long been seen as critical to the growth of the cannabis industry, and the reclassification is a big step forward in that direction.

With the reclassification of cannabis top of mind, here are the three best cannabis stocks to buy in May 2024.

Tilray Brands (TLRY)

In this photo illustration, the Tilray Brands (TLRY) logo is displayed on a smartphone screen

Source: rafapress /

Like most cannabis producers, Tilray Brands (NASDAQ:TLRY) is struggling. The company recently reported a quarterly loss of $105 million and lowered its forward guidance as its sales continue to struggle. The company said that it lost 12 cents per share for its fiscal third quarter ended Feb. 29. Revenue totalled $188.3 million.

The results were better than a loss of $1.20 billion and revenue of $145.6 million recorded a year earlier. But not good enough to keep TLRY stock aloft.

In the last 12 months, TLRY stock has declined 28%, including a 11% drop so far in 2024. Over the last five years, the share price has fallen 96% and now trades as a penny stock.

Things have worsened for Tilray since the company said that it expects earnings of only $60 million this fiscal year. While the current situation is not great, Tilray is in a good position to capitalize on any relaxation in U.S. cannabis laws. The company has relocated its headquarters to New York City from Toronto as it focuses on the American market.

Canopy Growth (CGC)

The More CGC Stock Flounders, the Less Constellation Can Handle It

Source: Shutterstock

Canopy Growth (NASDAQ:CGC) is struggling mightily but remains one of the bigger cannabis producers. The company has long said that legalization in the U.S. is key to its future. As such, a reclassification decision couldn’t come soon enough for Canopy Growth.

The company most recently reported a net loss of $216.8 million. Canopy Growth says the loss equated to $2.62 per share. Revenue for what was the company’s fiscal third quarter totalled $78.5 million, down 8% from a year earlier.

Earlier this year, Canopy Growth undertook a reverse stock split to boost its share price, which is down 98% over the last five years. The company continues to struggle with declining sales and a loss of market share in its native Canada, even as it awaits a breakthrough in America.

In recent months, the company has sold its corporate headquarters and placed part of its business under creditor protection. However, news of the U.S. reclassification sent CGC stock up 80% in one trading day.

Aurora Cannabis (ACB)

Closeup of mobile phone screen with logo lettering of cannabinoid company Aurora Cannabis (ACB, blurred marijuana leaf (focus on left part of letter R in center)

Source: Ralf Liebhold /

Aurora Cannabis (NASDAQ:ACB) is another company that was forced to undertake a reverse stock split this year to prop up its share price, which has fallen 99% since 2019.

Like the other names in this article, Aurora Cannabis is trying to hold on while it awaits significant policy change at the federal level in America. In the meantime, the company has tried to boost sales by focusing on medical cannabis and targeting overseas markets such as Germany and New Zealand.

Things are starting to look more positive for Aurora Cannabis. For its next earnings report, analysts forecast that the company will report a quarterly loss of 18 cents per share, which would represent a year-over-year change of positive 88%.

Revenues are expected to be $52.11 million, up 10% from a year ago. While ACB stock is likely not out of danger just yet, reclassification and movement towards eventual legalization in America should help the company and its shareholders moving forward.

On the date of publication, Joel Baglole did not have (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 Publishing Guidelines.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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