Today, due to several years of promising cannabis-based products and the recent speculation surrounding the potential of nationwide cannabis legalization, the industry has blossomed into one of the most exciting places to invest.

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The unique, as well as niche market, is divided into a few defined segments but overall presents an untapped opportunity to investors, especially regarding cannabinoids (CBDs) which contain tangible medical benefits. While many players are competing in this space, only a few companies have focused on cosmetics products – bearing a deeper look into the pharmaceutical properties of cannabinoids.

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Currently, one of the most popular cannabis stocks right now is Tilray (TLRY), an American incorporated company with its headquarters in Nanaimo, Canada, is one of the top medical marijuana stocks to trade in 2021. Last year, the company launched a new brand of medicinal cannabis products called “Symbios”; the brand will include flowers, pre-rolled cigarettes, and cosmetic oils.

Due to the contemporary “meme stock craze”, interest in Tilray’s shares peaked. Earlier in the year, the biotech company’s stock price spiked to trade above $60.00 per share before pulling back to the present price of about $13.88. The company is directly investing in several sectors of the cannabis industry, building a well-diversified product line.

Looking to the future, Tilray’s management team is exploring innovative opportunities for CBD-infused drinks and other edibles in order to disrupt the soft drink market as well as the food industry. The company’s ventures could begin to attract more interest after Amazon became the latest retail giant to endorse the legalization of marijuana nationwide. Amazon, America’s second-largest private employer after Walmart said it will no longer test job-seekers for cannabis use.

In the past few years, more and more individuals and now companies have begun pushing cannabis products closer to federal legalization in the United States. Today, the legalization of marijuana receives support from Fortune 500 companies like Amazon, bettering the industry at large. If the current trend continues, Tilray will become one of the top cannabis stocks benefiting from the increased endorsement of the legalization of marijuana in the US.

According to Grand View Research, a leading business consulting firm specializing in market analysis, the cannabinoids market is expected to grow at a compound annual growth rate of about 20.4% through 2027. In 2019, the market was valued at $2.4 billion and then grew to an estimated value of $4.5 billion in 2020.

On the other hand, the overall cannabis industry was valued at about $20.5 billion in 2020 and is expected to top $90.4 billion by 2026. The size of the opportunity in the cannabis industry is enormous and even the smallest players stand to benefit.

From a valuation perspective, Tilray shares trade at a price-book value of 4.35. It is one of the few marijuana stocks listed at Nasdaq making it accessible to more investors. Analysts expect earnings to grow by 32% this year and 82% next year. Therefore the company could return to profitability soon for the first time since 2018.

Its valuation metrics could improve significantly. Furthermore, Tilray’s earnings are expected to grow at an average of about 49% annually for the next five years. This makes it a perfect candidate for those hunting for long-term growth stocks.

Conclusion

As investor interest soars, the cannabis industry gains more on-the-ground traction in mainstream markets. Today, more and more industry-leading companies are beginning to endorse the legalization of marijuana in the United States.

Due to the contemporary trends taking place in the American market, cannabis companies can expect an almost imitation of the trends which occurred in the Canadian market, advancing companies like Tilray. The stock offers immense growth opportunities and the current pullback may have created a great entry point.