The Canadian cannabis sector remains in a tough spot. Especially with “Cannabis 2.0” failing to move the needle much. Yet, that doesn’t mean there’s no longer a bull case for Canopy Growth (NYSE:CGC) stock.

How so? Sure, short-term, it may be hard for Canopy to bounce back from today’s prices (around $14.25 per share). But, long-term, prospects remain solid for the leading pot stock.

While the Canadian market faces headwinds, that’s not the same dynamic globally. As I wrote previously, the legalization wave marches on across the globe. In the U.S., governments strapped for cash may have more incentive to push for legalization. Of course, Canopy can’t enter the U.S. until federal legalization. But such a game-changing development could be on the horizon.

And, with its massive war chest, this company has the resources to capture much of the U.S. and other major markets, as they open up. In short, expect this industry leader to not just survive, but thrive, in the coming years. So, what’s the play now, while this future pot industry leader bides its time? Seize the opportunity, and scoop up a position in CGC stock after the recent dip.

CGC Stock and Its Near-Term Prospects

What’s on the horizon for Canopy? So far this year, the company has underwhelmed when it comes to results. Granted, as seen from its last quarterly results release back in August, revenue growth (21% year-over-year) continues. Losses are narrowing as well.

Yet, this hasn’t been enough to satisfy investors. Last year, when “Cannabis 2.0” was the catalyst on the horizon, many were expecting infused beverages and edibles to change the fortunes of Canopy, as well as its rivals.

But, as I’ve discussed previously, oversupply and less-than-expected demand in the Canadian market continues to impact results. And, with these challenges to the “story” that once drove this hot sector to rich valuations, it has been tough for stocks in this space to hold on to these gains.

Nevertheless, that doesn’t mean a “head for the exits” scenario. Far from it. In fact, diving into names like CGC stock now may set you up for big gains down the road. Especially given that full U.S. legalization could be just around the corner.

When Will the U.S. Market Be Fully Open to Canopy?

For years, investors have tried to handicap when marijuana will be fully legal across the United States. Sure, right now, many major states have fully legalized marijuana use. But, it remains a controlled substance on the federal level.

As a result, names like Canopy aren’t yet allowed to tap into this market. Even as more and more states contemplate legalization. Yet, in just a few years, we could see a fully open and legal pot market in the USA.

Sure, there’s no guarantee that the results of this November’s U.S. Presidential Election will help or hurt legalization odds. Neither candidate endorses full scale legalization. But, if the Democrats sweep the U.S. Senate along with the White House, the odds of things changing may improve.

Also, with two-thirds of Americans supporting pot legalization, marijuana is becoming less of a partisan issue. Simply put, the trends are firmly on Canopy’s side.

And what does that mean for this company? With its $2 billion war chest, Canopy has the capital to dominate in what will likely be the largest recreational pot market. But, potential success in America isn’t the only catalyst on the table.

Consider the wave of legalization across Europe and Latin America. Canopy is aggressively pursuing these newly open markets. Again, with the cash to seize opportunity, this well-capitalized pot name could easily capture share in these newly open markets.

Put it all together, and it’s clear prospects remain strong for Canopy. Don’t let today’s hiccups cloud your view of CGC stock.

Buy Now, While the Sector Remains Out of Favor

As its home market remains challenged, so does Canopy. While it has the cash to survive a tough environment, investors are looking for more. But, that “more” (legalization in the U.S. and other major markets) may be just around the corner.

That’s not to say we’ll quickly see the U.S. market open up. Yet, with trends on its side, and other markets offering opportunity, long-term prospects remain bright for this, one of the best cannabis plays out there.

So, what’s the verdict? Don’t let short-term hiccups scare you off. Long-term, CGC stock remains a winner. And a solid buy at today’s prices.

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