Cannabis company Tilray Brands (TLRY Quick QuoteTLRY - Free Report) reported fiscal Q1 results earlier this month. Tilray, a Zacks Rank #3 (Hold), plunged amid the worse-than-expected results. But with a potential rescheduling of marijuana at the federal level, is TLRY a buy?

During the first week of October, TLRY reported a wider-than-expected Q1 loss of -$0.08/share. The figure missed the Zacks Consensus Estimate of -$0.06/share by 33%. Revenues for the quarter of $153.21 million also missed estimates by -1.59%. TLRY has exceeded earnings estimates just twice in the past four quarters.

President Biden recently announced a pardon for all prior marijuana simple offenses, while simultaneously initiating an official review of how marijuana is scheduled under federal law. The process could pave the way for a bright future for the cannabis industry. Still, Tilray shares remain volatile despite the favorable industry outlook and have fallen over 50% this year.