3 Best Canadian Marijuana Stocks to Buy for the Upside Potential

While the recreational cannabis market continues to evolve and mature, there is still reason to be bullish on marijuana stocks and their prospects…

The Alternative Harvest exchange traded fund (NYSEARCA:MJ), which trades under the ticker symbol “MJ,” was the first cannabis-focused ETF approved in the United States.

The fund tracks an index of stocks that are engaged in the legal cultivation, production, marketing and distribution of cannabis products. In the first six months of this year, the MJ ETF is up a healthy 38% at $20.63.

Over the past year, the ETF has risen 59%, outpacing broader stock markets, and while individual marijuana stocks continue to experience highs and lows, analysts remain enthusiastic about the industry’s long-term potential.

Cannabis companies from neighboring Canada, where the drug is legal nationwide for recreational use, continue to lead the way. Here are the three best Canadian marijuana stocks to buy for future upside potential.

  • Tilray (NASDAQ:TLRY)
  • Canopy Growth (NASDAQ:CGC)
  • Aurora Cannabis (NASDAQ:ACB)

Best Marijuana Stocks to Buy: Tilray (TLRY)

Move over Canopy Growth. There’s a new king of the Canadian cannabis market.

Tilray is now bigger than both Canopy Growth and Aurora Cannabis following its recently completed merger with former rival Aphria.

The newly combined company, which continues to use the Tilray name and branding, has annual revenues of $1 billion and a 17% share of the North American retail cannabis market.

Industry observers are expecting big things from Tilray post-merger. Tilray executives say the company’s focus is to boost its sales in the U.S. market, where it sees a huge growth opportunity as more states legalize recreational cannabis.

About 20 states have now legalized the drug for recreational use. Tilray wants to eventually control 30% of the North American cannabis market.

Outside of North America, the company is expanding its presence in markets such as Germany and entering new markets where cannabis use has been decriminalized, such as Israel and Portugal.

TLRY stock is up year-to-date at around $18 a share. Investment bank Jefferies Group upgraded the company’s shares to “buy” from “underperform” after the Aphria merger officially closed.

Jefferies said the combined companies are a “perfect match” and stating that Tilray has an excellent opportunity to grow its sales in the U.S., Canada and throughout Europe.

Canopy Growth (CGC)

Canopy Growth stock looks like a buying opportunity at its current price of around $24, especially if the company succeeds in turning around its operations and improving its finances.

Many analysts have grown bearish on the former number one Canadian cannabis producer after a string of disappointing quarterly earnings.

In early June, the cannabis producer reported a steep year-end loss after writing off more than…

Continue reading at INVESTORPLACE.com