5 TSX cannabis stocks to buy under $20 as US weighs decriminalization

Highlights

• On Tuesday, November 9, the S&P/TSX Cannabis Index plunged by 0.33 per cent. It has noted a month-to-date increase of 13.25 per cent.
• Cannabis could be federally legalized in the United States after GOP Rep. Nancy Mace reportedly led a marijuana legislation bill, which could open new growth opportunities to Canadian pot producers.
• A pot stock mentioned here has soared by roughly 23 per cent over the past year.

Cannabis was legal in Canada since October 2018 and is a critical investment option for investors. On Tuesday, November 9, the S&P/TSX Cannabis Index plunged by 0.33 per cent. However, it has noted a month-to-date increase of 13.25 per cent.

5 TSX cannabis stocks to buy under $20 as US weighs decriminalization

However, cannabis could be federally legalized in the United States after GOP Rep. Nancy Mace led a marijuana legislation bill. If this bill succeeds, it could be a good thing for Canadian pot producers as they could be early suppliers to the U.S. market. Further, this could boost their revenues and overall profits, which ultimately stimulate their stocks’ performances.

Also read: 3 Canadian cannabis stocks to buy under $20

Investors are also closely following this development to reap the possibly significant benefits. On that note, let us discuss five Canadian cannabis companies listed on the TSX.

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1.    Auxly Cannabis Group Inc (TSX:XLY)

Auxly Cannabis Group Inc, headquartered in Toronto, which offers consumer-packaged cannabis products, saw its stock value at C$ 0.31 apiece on Tuesday, November 9, up by a whopping 10.714 per cent after the development from south of the border.

 Image source: © 2021 Kalkine Media Inc      

The XLY stock has surged by nearly 41 per cent in the past month. In the last three months, it has grown by almost 35 per cent. However, it has plummeted by more than 17 per cent in the last nine months.

Its stock price has jumped by about five per cent over the last year, while on a quarter-to-date (QTD) basis, it has spiked by roughly 27 per cent.

2.    Tilray Inc (TSX:TLRY)

Canadian cannabis giant Tilray Inc, which produces and markets cannabis for medical and recreational purposes, noted its stock price close at C$ 15.39 apiece on November 9, down by 0.065 per cent.

The stock of Tilray has soared by about 18 per cent in the past month. However, it has declined by more than 16 per cent in the last three months. It has swelled by almost 50 per cent on a year-to-date (YTD) basis. Moreover, it has soared by roughly 23 per cent over the past year.

Last month, on October 26, Tilray earned was recognized by the Luxembourg Ministry of Health as a trusted supplier for its medical cannabis programs. With GMP certification, the company expanded its medical cannabis business to Europe.

3.    Aurora Cannabis Inc (TSX:ACB)

Edmonton-based Aurora Cannabis Inc provides for medical and consumer markets worldwide through a portfolio of cannabis brands like MedReleaf, Reliva, Aurora Drift and others.

On November 9, Aurora noted its stock close at C$ 9.30 apiece, up by 1.974 per cent. Its stock has jumped by more than three per cent over the last month. In past three months, its stock has ascended by roughly two per cent.

Further, it has surged by more than 13 per cent month-to-date (MTD). It has yielded a return of approximately six per cent on a QTD basis.

4.    Canopy Growth Corporation (TSX:WEED)

Smith Falls-headquartered pot maker Canopy Growth Corporation saw its stock value at C$ 7.417 per share on November 9, up by 7.417 per cent.

The WEED stock has increased by roughly six per cent in the past month. However, it has plunged by nearly 29 per cent in the last three months.

On a week-to-date (WTD) basis, it has jumped up by about 19 per cent. The stock has delivered a MTD return of approximately 11 per cent.

With a market capitalization of C$ 6.83 billion, Canopy Growth held a price-to-book (P/B) ratio of 1.957 at the time of writing.

Also read: 3 top Canadian psychedelic stocks to buy

5.    Cronos Group Inc (TSX:CRON)

Cronos Group Inc manufactures and markets medicinal and recreational cannabis. It also exports its medicinal cannabis products to Germany and Poland.

On November 9, the stock of Cronos Group was valued C$ 7.11 apiece, down by 14.85 per cent. The CRON stock has ascended by more than four per cent in the past month. Further, it has gained by nearly 11 per cent MTD.

On the valuation side, Cronos Group held a market capitalization of 2.65 billion and a P/B ratio of 1.30, as of November 10.

Bottom line

Investors should understand that the cannabis space is highly volatile and exposed to political scenarios of different countries. Hence, it is essential note the risk-return factor that surrounds the cannabis space and an individual’s risk capacity as well.