3 Canadian Cannabis Stocks Poised for Explosive Growth

Despite the initial overhype, the Canadian marijuana industry is generally bearish. Many of the major players in the industry have seen their market capitalization at a fraction of their peak valuation. However, these companies still retain their fundamental strengths such as innovative facilities, market recognition, a healthy regional presence, etc.

Despite these strengths, the most positive upward push is expected to come from strong market optimism, and the most compelling factor is the US federal government legalizing marijuana. If that happens, a lot cannabis stocks in Canada could experience explosive growth.

Cronos stock

Cronos Group (TSX:CRON) is a Toronto-based company with three brands under its name and a decent international presence. One of its brands has closed up shop, but the company still owns the assets and all the IP (intellectual property) associated with them. Of the remaining two brands, one is focused on entertainment (including edibles) while the other is health oriented.

The stock has lost 91% of its value in the last five years alone (from the 2019 peak). Although it is highly unlikely that the company will recover the maximum amount, even a small surge can help investors double their capital. If the bullish phase continues for a long time, the stock can offer extraordinary returns to its investors, if they stick with this relatively risky investment for a while.

Tilray brands

Tilray brands (TSX:TLRY) is the result of the merger of a US and Canadian cannabis company, which would have created one of the largest entities in the global Cannabis market. The stock has done well for a while, but following the bear market stage of the rest of the marijuana industry, it fell and lost over 91% of its value.

Tilray has several brands under its name and covers the healthcare and entertainment segments of the market. It also has brands specific to the international market and presence in many promising markets, including Europe and Australia.

This international presence means it’s not just relying on federal marijuana legalization in the US for rapid growth. If it gains enough traction in any of its regional markets, it could propel the stock ahead of the rest of the sector that still struggles with the black market.

Aurora Cannabis

Aurora Cannabis (TSX:ACB) is one of the leaders of the pack – ie, the Canadian publicly traded cannabis companies. At its peak, the stock traded for over $160 per share. Today it is a micro-cap company that trades for less than $1 per share. It has dropped more than 60% in the last 12 months alone, and the downward movement does not seem to stop.

Its portfolio of different brands is still impressive – 10 companies in both adult and medical domains. Most of its brands have a strong presence in the region, but the company may be equipped to benefit from a legal marijuana boom in the US. As a penny stock, Aurora can offer explosive growth opportunities in the right market conditions.

Silly takeaway

All three cannabis stocks represent companies that, despite their aggressive decline, are among the largest players in the North American cannabis industry. If a positive catalyst makes the market more optimistic about Cannabis stocks, these three may be the first to ride the bullish train and may do so at a rapid pace.