Cannabis stocks Tilray (TLRY) and Canopy Growth (CGC) rallied 7% and 22.2%, respectively, on Wednesday. One of the key drivers of this upside was Aurora Cannabis’ (ACB) better-than-expected third-quarter Fiscal 2025 earnings report. ACB stock itself soared 46% in Wednesday’s regular trading session.
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The company reported a 37% year-over-year increase in the Q3 FY25 total net revenue, reaching C$88.2 million ($61.74 million). The top line was driven by a 51% jump in its global medical cannabis business. Further, Aurora posted a net income of C$31.2 million, reflecting a 282% year-over-year jump.
Importantly, Aurora’s improved international sales raised hope among investors that other Canadian cannabis companies could benefit by expanding globally.
Senate Hearing Addresses Cannabis Industry’s Banking Needs
Another positive development driving stocks higher was the Senate Banking Committee’s hearing on “de-banking,” a significant issue the U.S. cannabis industry is facing. Many cannabis operators face challenges accessing traditional banking services due to the federal illegality of cannabis.
The hearing highlighted the need for the passing of the SAFE Banking Act, which would provide legal protections for banks that serve the cannabis industry.
Despite ongoing challenges in the cannabis industry, particularly regulatory hurdles, recent developments have boosted market optimism about the future of cannabis companies.
Which Cannabis Stock Is a Good Buy?
According to the TipRanks Stock Comparison Tool, ACB stock has a Moderate Buy consensus rating, TLRY has a Hold rating, and CGC stock is a Moderate Sell. Importantly, analysts see an upside potential of over 15% in all these stocks.
