TLRY - Cannabis Stocks: Why HEXO TLRY APHA CGC Stocks Gained Today
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Today, cannabis stocks are getting a lot of attention from investors. The “green rush” appears to be in full swing, with a number of key cannabis players gaining to close out the day.
Indeed, Hexo (NYSE:HEXO), Tilray (NASDAQ:TLRY), Aphria (NASDAQ:APHA) and Canopy Growth (NASDAQ:CGC) are all up big today. These stocks each gained 4%-12%.
Why the positive outlook?
Well, it appears there are a multitude of factors at play with these Canadian cannabis players. Sentiment is once again growing bullish, as investors seek high-growth options. And cannabis players haven’t disappointed in this regard for long-term investors in this space.
Let’s take a look at some of the key catalysts investors are considering with these stocks today.
Cannabis Stocks Are Taking Off on Bullish Market Outlook
Both Tilray and Canopy have been given a vote of confidence today from analysts. Specifically, a Bank of America analyst reinstated a “buy” rating on both stocks today.
Cannabis stocks have become hot commodities with the retail investor crowd. Speculative growth plays have provided volatile lottery ticket-like returns for some time. However, analysts generally have been mixed on the valuations of these growth stocks. The fact that retail investors’ optimistic outlook for these stocks is being reaffirmed by analysts appears to be a very bullish catalyst investors are latching on to today.
Additionally, these four stocks represent some of the largest names in the Canadian cannabis space. Recent growth numbers for legal Canadian cannabis sales have stoked investor interest in these operators north of the border. Should this momentum continue, investors and speculators may be further enticed to consider these stocks.
The cannabis sector remains a highly volatile, and speculative one, to invest in. Accordingly, investors should always incorporate discipline in diversifying these holdings, and sizing positions appropriately.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.
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