Today is the infamous 4/20 holiday, and in the wake of this marijuana holiday's inevitable festivities, the US house of representatives passed the SAFE Banking Act, which would give US marijuana companies access to funding from federally insured banks. This is a landmark bill that swept through the House with a 321 to 101 vote in favor of the bill. This is a massive momentum driver for marijuana legalization in the US, so why are cannabis stocks plummeting today?
It's because all the marijuana stocks we know and love, like Tilray (TLRY - Free Report) , Aphria , and Aurora Cannabis (ACB - Free Report) , are Canadian marijuana enterprises, not US cannabis producers. In fact, almost all of the US marijuana plays are higher today on their OTC exchanges (they trade OTC because marijuana is not federally legal in the US, so they can't trade on the traditional exchanges yet, unlike their Canadian counterparts who operate in a legalized country).
American weed companies like Acreage Holdings (ACRDF), Cresco Labs (CRLBF), Green Thumb Industries (GTBIF), and Constellation Brands (STZ - Free Report) (who has a 38% interest in Canopy Growth and a contingency option to purchase Acreage Holding when weed is legalized in the US) are all remaining relatively buoyant today. The SAFE Banking Act will benefit US marijuana enterprises, which is why we are seeing this deviation today between the US stocks and their Canadian competitors. Now the uncertainty is with the Senate, with analysts not so optimistic about its approval before some revisions are made. None the less this is an excellent sign for US Marijuana.
Stocks I like following the recent pullback in cannabis stocks are both Green Thumb Industries (GTBIF) and Constellation Brands (STZ - Free Report) .
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
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Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Today is the infamous 4/20 holiday, and in the wake of this marijuana holiday's inevitable festivities, the US house of representatives passed the SAFE Banking Act, which would give US marijuana companies access to funding from federally insured banks. This is a landmark bill that swept through the House with a 321 to 101 vote in favor of the bill. This is a massive momentum driver for marijuana legalization in the US, so why are cannabis stocks plummeting today?
It's because all the marijuana stocks we know and love, like Tilray (TLRY - Free Report) , Aphria , and Aurora Cannabis (ACB - Free Report) , are Canadian marijuana enterprises, not US cannabis producers. In fact, almost all of the US marijuana plays are higher today on their OTC exchanges (they trade OTC because marijuana is not federally legal in the US, so they can't trade on the traditional exchanges yet, unlike their Canadian counterparts who operate in a legalized country).
American weed companies like Acreage Holdings (ACRDF), Cresco Labs (CRLBF), Green Thumb Industries (GTBIF), and Constellation Brands (STZ - Free Report) (who has a 38% interest in Canopy Growth and a contingency option to purchase Acreage Holding when weed is legalized in the US) are all remaining relatively buoyant today. The SAFE Banking Act will benefit US marijuana enterprises, which is why we are seeing this deviation today between the US stocks and their Canadian competitors. Now the uncertainty is with the Senate, with analysts not so optimistic about its approval before some revisions are made. None the less this is an excellent sign for US Marijuana.
Stocks I like following the recent pullback in cannabis stocks are both Green Thumb Industries (GTBIF) and Constellation Brands (STZ - Free Report) .
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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