Tilray (TLRY) and WEED: 2 TSX cannabis stocks to buy in July

The S&P/TSX Cannabis Index (CAD) sank by about 55 per cent in 2022. TSX cannabis stocks like Tilray (TSX: TLRY) and Canopy Growth (TSX: WEED) also fell to their 52-week lows in June. However, TSX pot stocks can see some significant gains in the long term if the industry sees federal decriminalization in the US, which has been in talks for a while now.

Let us explore these two TSX cannabis stocks today.

Tilray Brands Inc (TSX: TLRY)

Tilray reported a 23 per cent growth in its net revenue to US$ 152 million in Q3 FY2022, up from US$ 124 million in the same period last year. The company said it saw a revenue surge of over 4,000 per cent in international cannabis in the latest quarter compared to Q3 2021.

On Wednesday, June 29, the pot producer announced expanding its medical cannabis offerings in the UK under its division Tilray Medical.

TLRY stock zoomed by over nine per cent from its 52-week low of C$ 3.91 (June 16). However, the pot stock was still down by nearly 81 per cent year-over-year (YoY). As per Refinitiv data, Tilray seems to be on a downward trend with a Relative Strength Index (RSI) of 38.11 on June 29, marginally higher from the oversold territory.

Canopy Growth Corporation (TSX: WEED)

Canopy Growth disclosed its plans to acquire Wana Brands and Jetty Extracts to strengthen its Cannabis brand portfolio. The smallcap firm said its net revenue reduced to C$ 520 million in fiscal2022, representing a YoY change of five per cent.

In May, Canopy introduced new product lines under 7ACRES, Deep Space, Ace Valley and Doja, its four premium brands.

WEED stock was up by over seven per cent from its 52-week low of C$ 4.19 (June 16). According to Refinitiv data, Canopy also appears to be on a downward trajectory, with an RSI of 38.64 on June 29.

Bottomline

Tilray and Canopy are expanding their cannabis products and could benefit from the expected federal legalization in the US. As for their stock performance, cannabis stocks are not alone in the red territory in the current market scenario. The TSX benchmark dropped by over 10 per cent year-to-date (YTD). Hence, considering their growth possibilities, these TSX pot stocks can be explored for the long term.

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.