Top 3 Canadian Cannabis Stocks to Watch in February 2026The Canadian cannabis sector continues to evolve in early 2026. Although volatility remains, investor interest is returning. Regulatory discussions in the United States are once again gaining momentum. Because of that, Canadian operators with U.S. exposure are drawing attention. Many investors are watching companies positioned for cross-border expansion.Canada remains a mature recreational market. However, growth there has slowed compared to earlier ye ...

Canopy Growth (NASDAQ: CGC) is a high-risk investment. The stock has lost over 95% of its value since its initial public offering. There was material excitement around marijuana stocks and Canopy Growth a few years ago, but the company has not lived up to Wall Street's perhaps overzealous expectations. Now is probably not the time to jump aboard. Canopy Growth falls to $1 At one point in 2019, a share of Canopy Growth would have cost over $560 (after adjusting for reverse splits). Today, that same share ...

Core Viewpoint - Canopy Growth is considered a high-risk investment primarily due to its low stock price and ongoing financial struggles, making it unsuitable for most investors [1][9]. Group 1: Stock Performance - Canopy Growth's stock is trading around $1, categorizing it as a penny stock, which is typically associated with high risk and potential struggles [2]. - The current stock price is $1.19, with a market capitalization of $403 million [6][7]. - The stock has a 52-week range of $0.77 to $2.38, indicating significant volatility [7]. Group 2: Financial Health - The company recently recapitalized its balance sheet, pushing out debt maturities, which is a positive sign; however, it had to offer incentives like warrants, indicating financial weakness [5]. - Canopy Growth has never been profitable and continues to incur losses, although the losses are reportedly decreasing [8]. Group 3: Business Strategy - Despite financial challenges, Canopy Growth is proceeding with the acquisition of MTL Cannabis, which is expected to enhance its geographic positioning in the marijuana sector [7]. - The all-stock deal for the acquisition will increase the company's share count, leading to shareholder dilution and complicating profitability efforts [7].

Will Market Changes Impact Marijuana StocksThere have been many changes and phases to legal cannabis around the globe. With the USA being the biggest market and Canada becoming the first to outright legalize the plant. This has been a slow uphill climb as laws and regulatory matters have made things anything but easy. However, this has not deterred potential investors from seeing an opportunity. Marijuana stocks have offered the average investor or person a chance to enter the space.Most of the public secto ...

Core Viewpoint - Cannabis stocks have underperformed over the past five years, but recent positive regulatory changes in the U.S. may present long-term growth opportunities if the marijuana market expands significantly [1] Group 1: Canopy Growth - Canopy Growth is a leading player in the Canadian cannabis market with a diverse product portfolio, including dried cannabis flower, vapes, and edibles, and has a presence in multiple countries, including the U.S. [2] - Following President Trump's executive order to classify cannabis as a Schedule III substance, Canopy Growth may have expansion opportunities in the U.S. [3] - In Q3 2026, Canopy Growth reported net revenue of $54.62 million, a slight decrease of 0.3% year-over-year, but improved its net loss per share to $0.13 from $0.81 in the previous year [3] - If Canopy Growth can capitalize on U.S. opportunities and continue to reduce losses, it could yield strong returns [4] Group 2: Tilray Brands - Tilray Brands also has a comprehensive portfolio of cannabis products and operates in several countries, including the U.S., Germany, and Portugal, and has diversified into craft brewing and hemp-based products [5] - In Q2 of its 2026 fiscal year, Tilray reported net revenue of $217.5 million, a 3% year-over-year increase, while its net loss improved to $0.41 from $0.99 in the previous year [6] - Tilray is well-positioned to take advantage of emerging opportunities in the U.S. cannabis market, which could lead to significant share price increases if successful [6]

Core Viewpoint - Canopy Growth Corporation (NASDAQ:CGC) is undergoing significant financial restructuring to improve its balance sheet and extend debt maturities, while facing challenges in valuation and market conditions [1][3]. Group 1: Financial Adjustments - Alliance Global analyst Aaron Grey has reduced the price target for Canopy Growth Corporation from C$2.50 to C$1.80, maintaining a Neutral rating due to uncertainties regarding veteran reimbursement changes and potential gross margin pressures [1]. - The company has announced a recapitalization plan that includes securing a new US$150 million term loan due in 2031 to refinance existing debt and enhance working capital flexibility [3]. - Canopy Growth has also reached an agreement to exchange a portion of its 2029 convertible debentures for new 2031 debentures, cash, equity, and warrants, which aims to improve capital structure flexibility and provide multi-year liquidity visibility [3]. Group 2: Company Overview - Canopy Growth Corporation, founded in 2013 and headquartered in Smiths Falls, Ontario, is involved in the production and distribution of recreational and medical cannabis products across various markets [4].

Group 1 - Canopy Growth Corporation (NASDAQ:CGC) is recognized as one of the best cannabis stocks to invest in currently [1] - Alliance Global has reduced its price target for Canopy Growth from C$2.50 to C$1.80 while maintaining a Neutral rating, reflecting concerns over veteran reimbursement changes and gross margin uncertainties [2] - The company reported a fiscal third-quarter loss of C$0.18 per share, an improvement from a loss of C$1.11 per share in the same quarter last year, with revenue increasing from C$86.24 million to C$90.39 million [3] Group 2 - Canopy Growth operates in multiple segments including Canada Cannabis, International Markets Cannabis, Storz and Bickel, This Works, and Other [4] - The management highlighted ongoing efforts to enhance operational execution and mentioned the acquisition of MTL Cannabis as a strategic move to strengthen the company's platform [3]

Company Overview - Canopy Growth has seen its stock value decline by over 40% in the past year, with its market cap dropping from approximately $1.5 billion to just under $400 million, and it has not reported a profitable quarter since Q2 2021 [1] - Green Thumb Industries is positioned as a profitable alternative in the cannabis sector, on track for its sixth consecutive year of positive earnings per share [2] Financial Performance - Canopy Growth reported a revenue of $90.4 billion in its fiscal 2026 third quarter, marking a 5% year-over-year increase, but still incurred a net loss of $0.18 per share, which was a 49% reduction in loss compared to previous periods [4] - The company has reduced its net long-term debt by 25% to $225 million, although this was achieved by issuing new stock, leading to a 142% increase in the number of shares outstanding over the past year [5] Market Position and Strategy - Canopy Growth has operations in Canada, Germany, and Australia, and its acquisition of Acreage Holdings aims to establish a presence in the growing U.S. cannabis market [5] - Green Thumb Industries operates 108 dispensaries and 20 manufacturing facilities across 14 states, and is expected to benefit significantly if cannabis is reclassified as a Schedule III substance, which would allow for standard business deductions [6][7] Tax Implications - Currently, cannabis companies face limitations on business deductions due to marijuana being classified as a Schedule I drug, resulting in U.S. cannabis companies paying an additional $2.3 billion in taxes in 2024 [7] - Rescheduling cannabis could enable companies like Green Thumb to invest more in growth, enhancing their profitability [7]

Core Insights - Canopy Growth Corporation (CGC) reported a loss of 1 cent for Q3 fiscal 2026, a significant improvement from a loss of 76 cents in the same period last year, with sales remaining flat at $53.5 million (~C$75 million) [1][11] Financial Performance - Total cannabis revenues increased by 4% year over year, driven by strong performance in the Canadian market, which helped mitigate international volatility [3] - Canadian adult-use market sales rose by 8% year over year, supported by growth in infused pre-roll joints and new All-In-One vapes [4] - Medical cannabis sales in Canada grew by 15%, aided by an increase in insured patients and larger order volumes [4] - Overall gross margins decreased by 300 basis points to 29%, attributed to lower sales of higher-margin cannabis in international markets and increased inventory provisions [6] Market Dynamics - Canopy Growth's international cannabis division faced challenges due to supply-chain issues in Europe, leading to a decline in net revenues from its Storz & Bickel subsidiary [5] - The company anticipates continued strength in its Canadian cannabis business, with innovations in product offerings and expanding distribution [7] - Management expects sequential improvement in Europe as flower supply and strain availability increase, positioning the region as a growth driver [8] Competitive Landscape - Canopy Growth operates in a competitive market with players like Curaleaf Holdings and Tilray Brands, which are also expanding into international markets [9] - Increased competition may lead to aggressive market moves and further consolidation within the sector [9] Stock Performance and Outlook - Canopy Growth's shares have declined by 40% over the past year, compared to a 16% decline in the industry [12] - Management is targeting positive adjusted EBITDA by fiscal 2027, although overall business visibility remains limited due to international uncertainties and competitive pressures [11][16]

Core Insights - Canopy Growth Corporation (CGC) reported financial results that were in line with expectations, showing strong revenues but an overall net loss [1] Financial Performance - The company experienced strong revenue generation, although it still reported a net loss [1] Strategic Developments - Canopy Growth is set to acquire MTL Cannabis, which is expected to enhance both revenues and overall company valuation [1]