Does Marijuana Rescheduling in the U.S. Make Canopy Growth a Good Buy in 2026?

• President Trump signed an enforcement bid to reschedule marijuana successful the U.S., which volition marque it easier to probe the substance.

• Canopy Growth is simply a Canada-based producer, which won't payment from the changes.

• Investors whitethorn beryllium hopeful that this tin beryllium a archetypal measurement toward U.S. legalization, but that tin beryllium a risky assumption.

• 10 stocks we similar amended than Canopy Growth ›

For years, Canopy Growth (NASDAQ: CGC) was seen arsenic a apical marijuana banal to own. It was a starring institution based successful Canada that was focused connected maturation and accelerated enlargement passim the country, and eyeing opportunities successful the U.S.

Unfortunately, things haven't panned retired arsenic the institution had hoped. As a result, it's not lone been doing badly, it could easy beryllium 1 of the worst stocks you could person owned during the past 5 years. In that stretch, it has mislaid much than 99% of its value.

Today, with a marketplace headdress of $500 million, the banal has gotten much attraction of precocious owed to quality of the U.S. rescheduling marijuana to a little unsafe category. Could this beryllium what helps crook Canopy Growth's fortunes around?

Last month, U.S. President Donald Trump signed an enforcement bid to reschedule marijuana from a Schedule I substance to Schedule III. What this means is that per the Drug Enforcement Administration's cause scheduling, marijuana volition nary longer beryllium classified successful the aforesaid class arsenic heroin and LSD.

The large triumph for the marijuana manufacture is that it volition marque it easier to probe the substance. For multi-state operators, it volition pb to little taxation bills, arsenic conception 280E of the taxation codification volition nary longer apply. This conception prevents marijuana companies from deducting basal concern expenses.

For Canopy Growth, arsenic you whitethorn person realized, this doesn't mean a full lot. While galore investors spot rescheduling arsenic a affirmative archetypal measurement toward marijuana legalization, by nary means is that a definite thing, and there's nary crushed to expect that it volition hap anytime soon. But arsenic with immoderate affirmative marijuana-related news, stocks successful the manufacture often each emergence and autumn together. Canopy Growth did get a little boost connected the developments past month, lone to extremity up falling backmost down.

In caller years, Canopy Growth has been shrinking, alternatively than expanding. It has been moving connected trimming its costs and limiting its currency burn. Unfortunately, those are inactive problems plaguing the concern today.

In the company's astir caller 4th ended Sept. 30, Canopy Growth incurred an operating nonaccomplishment totaling $16.9 cardinal Canadian dollars ($12.2 million). That's a sizable betterment from a twelvemonth ago, erstwhile its operating nonaccomplishment was CA$45.9 cardinal (largely owed to overmuch smaller impairment and restructuring expenses). Its currency pain complaint has besides slowed significantly. During the past six months, the institution utilized up CA$28.3 cardinal implicit the people of its day-to-day operating activities, versus CA$105.6 cardinal successful the aforesaid play a twelvemonth ago.