Multiple cannabis stocks to buy should climb higher thanks to Washington’s efforts to help the sector. So far, the federal government looks poised to undertake two initiatives that should greatly boost marijuana companies in the long term. First, Congress appears to be poised to pass the SAFER Banking Act this year. The bill would explicitly authorize banks to provide loans and other financial services to cannabis companies. Of course, American marijuana distributers would be able to expand more readily if they had easier access to U.S. banking loans. Importantly, SAFER was already passed by the Senate Banking Committee by a 14-9 count, suggesting a high chance of the bill becoming law.
Secondly, the Drug Enforcement Administration will reportedly lessen cannabis restrictions. The change would enable pharmaceutical companies to sell and distribute medical marijuana in legal states. This should boost cannabis’ firms top and bottom lines. For investors who want to benefit from Washington’s move, here are three cannabis stocks to buy.
Aurora Cannabis (ACB)
Aurora Cannabis (NASDAQ:ACB) reportedly doesn’t have an official presence in the U.S. But the company should still be able to generate a great deal of revenue and profits by selling the marijuana that it grows in Canada to U.S. pharmaceutical firms.
What’s more, Aurora Cannabis is very well-positioned to benefit from Germany’s recent legalization of marijuana. That’s because Aurora is one of only three firms that can grow marijuana in the European country.
Aurora’s revenue rose 5.4% in its fiscal third quarter to 64.4 million Canadian dollars. Meanwhile its EBITDA came in at 4.3 million Canadian dollars, up from 3 million Canadian dollars during the same period a year earlier.
Canopy Growth (CGC)
Canopy Growth (NASDAQ:CGC) is taking steps to launch a new U.S.-based holding company that will acquire multiple firms within the American cannabis market. As a result, Canopy will be exceptionally well-positioned to benefit from the SAFER Banking Act and the government’s relaxation of restrictions on cannabis. Consequently, Cannabis is certainly one of the best cannabis stocks to buy.
In Canopy’s Q3, its revenue climbed 6% versus the same period a year earlier. Even more impressively, the revenue that it generated from cannabis outside of its Canadian home market soared 81% YOY to $10.5 million.
The firm’s price/sales ratio of 2.5 times is very attractive, given its huge, upcoming opportunities.
Tilray (TLRY)
In a statement to Barron’s, Tilray (NASDAQ:TLRY) CEO Irwin Simon wrote that Washington’s relaxation of restrictions on cannabis “paves the way for the establishment of a federally legal medical cannabis industry.” Simon added that ““We believe that we are well-positioned and ready to participate in the medical cannabis market in the U.S.”
Indeed, Tilray is one one of the largest medical cannabis businesses in both Canada and Europe. Its expertise in medical marijuana should cause it to benefit from the growth of the U.S. medical marijuana sector. The Biden administration’s reduced cannabis restrictions will enable drug companies to start selling cannabis for use by medical patients. As a result, drug companies will use their huge marketing power to promote medical marijuana, benefiting Tilray.
The price/book ratio of Tilray is a tiny 0.50.
On the date of publication, Larry Ramer held a long position in ACB. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.