This Stock Has Almost Tripled in 6 Months. Here's What Investors Need to Watch Next

• Tilray's shares person soared since mid-2025, driven by expectations of cannabis reclassification successful the U.S.

• These expectations person present go a reality, and they volition person an interaction connected cookware growers successful the country.

• Despite this progress, important challenges prevarication up for Tilray.

• 10 stocks we similar amended than Tilray Brands ›

Who says cannabis stocks can't execute well? Although the sector's show has been dismal successful caller years, the 2nd fractional of 2025 has seen a turnaround for manufacture leaders. Take Tilray Brands (NASDAQ: TLRY), a Canada-based cookware grower. The company's shares person accrued astir 200% during the past six months, and this momentum could transportation into 2026. Does that marque Tilray's shares a buy? Here's what investors should ticker retired for.

During the past fewer years, shares of Tilray and those of its peers successful the cannabis manufacture person surged aggregate times connected the expectations that determination would yet beryllium immoderate affirmative regulatory developments successful the U.S. However, these hopes ne'er materialized, until now. President Donald Trump has signed an enforcement bid to reclassify marijuana. Let's interruption down what precisely this means. Under U.S. law, controlled substances are enactment into 1 of 5 categories, deemed "schedules," by bid of their usefulness for astatine slightest immoderate aesculapian purposes and the grade to which they are apt to beryllium abused, and whether they are harmless to consume.

Schedule 1 drugs, wherever marijuana was classified until Trump's enforcement order, are considered the astir dangerous, and determination is, nether the law, nary accepted aesculapian usage for them. Schedule 3 drugs person a little imaginable for maltreatment than those successful the 2 categories earlier it, and besides person immoderate accepted aesculapian uses. Trump taking marijuana retired of Schedule 1 and putting it successful Schedule 3 has important implications for the cannabis industry. Let's see 3 of them.

First, it would marque probe into imaginable aesculapian uses for cannabis easier. Second, it would marque it a spot easier for cookware growers to entree immoderate banking services, which are presently hard to obtain. Third, it would person immense taxation implications. Because of U.S. taxation laws, companies that administer Schedule 1 oregon Schedule 2 substances cannot deduct mean concern expenses from their income.

But if cannabis is reclassified arsenic planned, this volition nary longer use to companies successful the sector. That volition mean higher operating profits and margins for cannabis companies (all other being equal).

It's indispensable to enactment that these changes would person small to nary interaction connected Tilray's concern arsenic it presently stands. The institution does not marque immoderate gross from the merchantability of marijuana products successful the U.S. However, Tilray does connection hemp-based goods successful the country. Hemp comes from the aforesaid works but has little THC (the compound that intoxicates users) than cannabis and is not considered a controlled substance.