6 Cannabis Stocks That Could Make A Jump If Biden Wins The Election
5 Different states voted on the legalization of Marijuana yesterday. If former Vice President Joe Biden wins over President Donald Trump analysts and experts say that it could be a boost for cannabis stocks (Analysts expect the US cannabis market to hit $100 billion by 2030). Biden and his running mate, Sen. Kamala Harris, have pledged to decriminalize cannabis at the federal level if elected.
Potential Vice President Harris has sponsored cannabis reform legislation in the Senate.
"We view a Democratic win this November as more favorable to the cannabis industry, given formalized documentation of support for federal cannabis decriminalization via the Biden-Sanders Unity Task Force, a more recently pro-cannabis running mate in Sen. Kamala Harris (sponsor of the MORE Act), and the removal of the overall ambiguity and unpredictability of President Trump's stance on the subject matter," analysts from the investment bank Canaccord Genuity said in a recent note.
If Democrats win control of the Senate legislation such as the MORE Act (It removes cannabis from the Controlled Substances Act and expunge the records of those convicted under previous cannabis laws) are likely to be passed.
At the state level, voters in New Jersey and Arizona are most likely to support ballot measures making marijuana legal for adults, Azer said.
It is believed that legalization in New Jersey would start a ripple effect that saw New York and Pennsylvania do the same. For these reasons, analysts say US cannabis companies with broad exposure to New Jersey, New York, Pennsylvania, and Arizona could see the biggest boost in valuation following the election. (Most US cannabis stocks are traded over-the-counter "OTC" in the US, as major stock exchanges do not allow companies that sell THC directly to list on the exchange.)
Analysts' top picks:
- Curaleaf (CURA)
- Harvest Health & Recreation (HRVSF)
- Green Thumb Industries (GTII)
- Columbia Care (CCHWF)
- Cresco Labs (CL)
- Acreage Holdings (ACRHF)