Cannabis stocks are surging after President Trump said earlier today that his administration is looking at whether to reclassify marijuana as a less dangerous drug, with a decision likely to come in the next few weeks. While 45 states have already legalized marijuana in some form, either for medical or recreational use, it is still considered a Schedule I drug at the federal level. This category, which was created under the Controlled Substances Act of 1970, labels marijuana as highly dangerous, addictive, and without accepted medical use.
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However, the idea of changing that classification has been ongoing for several years. Indeed, in 2022, then-President Joe Biden told the Department of Health and Human Services (HHS) and the Drug Enforcement Administration (DEA) to review marijuana’s status. HHS later recommended in 2023 that it be moved to Schedule III, and in 2024, the DEA proposed a rule to make the change. Interestingly, moving marijuana to Schedule III would put it in the same category as drugs like Tylenol with codeine or anabolic steroids, which can be prescribed by licensed medical professionals and filled at pharmacies.
If this change happens, it would be the most significant shift in federal marijuana policy since the drug was first banned, although it would not make recreational use legal nationwide. Nevertheless, Trump said that the choice is not straightforward, as it means balancing the potential medical benefits with concerns about its broader impact on society. “Some people like it, some people hate it. Some people hate the whole concept of marijuana,” he said, noting how divided public opinion remains.
Which Cannabis Stock Is the Better Buy?
Turning to Wall Street, out of the four stocks pictured below, analysts think that TCNNF stock has the most room to run. In fact, TCNNF’s average price target of $14.09 per share implies more than 87% upside potential. On the other hand, analysts expect the least from CURLF stock, as its average price target of $3.03 equates to a gain of 14.5%.
