TLRY - Why Tilray Conn's and Medicines Company Jumped Today
Tuesday was a bad day on Wall Street, as investors reacted negatively to new tariffs that went into effect between the U.S. and China. Many market participants had hoped that the two parties would agree to some kind of temporary reprieve to avoid the uptick in trade tensions, but it now appears that no resolution is likely in the immediate future. Nevertheless, some companies benefited from favorable business-specific factors that boosted their shares. Tilray (NASDAQ: TLRY), Conn's (NASDAQ: CONN), and Medicines Company (NASDAQ: MDCO) were among the top performers. Here's why they did so well.
Shares of Tilray soared 17% despite comments from Wall Street analysts that weren't entirely positive. Cowen cut its target price on the stock by a whopping 60% to just $60, citing supply constraints that have prevented the Canadian cannabis market from growing as fast as Tilray and its peers had hoped. Yet even though that's been a particularly big problem for Tilray, Cowen still thinks that the marijuana stock will outperform the market. Moves into the U.S. hemp-derivatives market could be a big growth driver, and the company is doing well internationally. Even if it never returns to its glory days of $300 stock prices, Tilray still has a lot of room to grow.
Image source: Tilray.