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Why Canopy Growth Surged Yesterday

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Nov. 5 2019, Updated 1:08 p.m. ET

The go-to stock

Canopy Growth (WEED) (CGC) has sort of become a go-to stock in addition to Tilray (TLRY) for investors who want to invest in this industry (MJ).

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Why it surged yesterday

Canopy Growth surged almost 12% yesterday after gaining another 13% just a day ago on January 9. A couple of catalysts have driven the company’s stock price.

On January 10, Canopy Growth announced its move into the Latin American market with the introduction of its company under the name of Spectrum Cannabis Peru, which will be Canopy’s network for Latin American operations for medical cannabis in Peru.

On January 9, another highly respected investment firm, Piper Jaffray, initiated its coverage on Canopy Growth giving it an “overweight” rating. On the same day, Constellation Brands reported its earnings and provided a very positive outlook on Canopy Growth. Constellation Brands estimates Canopy Growth to reach sales growth of 1 billion Canadian dollars within the next 18 months. To learn more, read Canopy Growth: Notes from Constellation Brands’ Earnings.

Canopy Growth also got a big boost on January 8 from Cowen and Company, which gave the stock an “outperform” rating. On the same day, Jim Cramer Made His Pick in the Cannabis Industry and recommended Canopy Growth over Tilray.

These movements have also been positive for the overall cannabis sector. Cronos (CRON), Tilray (TLRY), and HEXO (HEXO) are all trading higher this year.

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