Shares of cannabis stocks Tilray Brands (TLRY), Aurora Cannabis (ACB), and Canopy Growth (CGC) surged Friday after reports suggested the U.S. government may significantly ease federal marijuana restrictions. Notably, CGC stock jumped 54%, TLRY climbed 44%, and ACB gained 18.7%.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
Trump Pushes Plan to Loosen Federal Marijuana Rules
On Thursday, a report by The Washington Post said President Donald Trump is expected to direct federal agencies to reclassify marijuana from Schedule I to Schedule III. Schedule I substances like heroin and LSD are considered to have no accepted medical use and a high potential for abuse, while Schedule III drugs have recognized medical uses and a lower risk of abuse.
However, a White House spokesperson told Forbes that no final decisions have been made regarding marijuana rescheduling.
What It Means for Cannabis Stocks
A potential move to reclassify marijuana to Schedule III would be a major turning point for U.S. cannabis companies. It would ease federal restrictions, reduce tax burdens, and make it easier for businesses to access banking, financing, and insurance. Additionally, the shift would reduce regulatory hurdles, open the door for broader medical and commercial use, and potentially draw more institutional investors into the sector.
For stocks like TLRY, CGC, and ACB, the news signals a path toward a more legitimate, less restricted operating environment —which is why shares reacted so sharply. If rescheduling goes forward, it could mark the beginning of a more stable, scalable future for the entire cannabis sector.
What are the Best Cannabis Stock to Buy, According to Analysts?
As investor interest in cannabis stocks picks up, analysts are highlighting a select group of companies they believe are best positioned to benefit from easing regulations and long-term industry growth. While the sector remains volatile, these analyst-favored cannabis stocks stand out for investors.
Using TipRanks’ Comparison Tool, we compared cannabis stocks across key metrics such as analyst ratings, price targets, forecasted upside, and Smart Score. Investors can dig deeper to decide which cannabis stock best fits their strategy. Below is a screenshot for reference.
