Thinking About Buying Canopy Growth? You May Want to Wait for This 1 Thing to Happen First.

For Canopy Growth (NASDAQ: CGC), as with most cannabis stocks, the next key catalyst has nothing to do with the industry or the economy. Instead, what will likely cause marijuana stocks to surge or sink from here has to do with an upcoming decision from the U.S.

Drug Enforcement Administration (DEA). This decision wouldn't resolve all of Canopy's regulatory headwinds, but since it could spark another round of bullishness, let's dive into the latest. Missed Nvidia in 2009?

This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia.

Continue » Image source: Getty Images. The DEA, Schedule III, and what it could mean for Canopy Growth The DEA's efforts to reschedule marijuana to Schedule III have been months in the making, with hearings on the matter only taking place recently. Legal experts seem confident that these hearings will lead to a decision that bodes well for the cannabis industry, but it's unclear whether a final decision will finally arrive.

Still, given President Donald Trump's executive order issued last December, which called for reclassification to occur "in the most expeditious manner possible," a final decision could arrive far sooner. While it's not a solution for all regulatory hurdles, it would signal that Canopy is moving closer toward consolidating its U.S.

affiliate, Canopy USA, into the parent company. Canopy USA itself would benefit by being no longer subject to the deduction limitations imposed by section 280E of the Internal Revenue Code. Buy now, or watch and wait?

So, is it time to buy Canopy ahead of the Rescheduling decision, or to watch and wait? Based on past price performance, I would go with the latter. Remember that in April, following the last bit of DEA-related legalization news, Canopy and peers surged briefly, then sank back down.

The same thing could repeat itself if the U.S. Federal Government moves ahead with a broad rescheduling of cannabis.

Investors could bid shares up on the headlines at first, then retreat upon reading the details. As the best approach entails holding cannabis stocks as a long-term wager on legalization, not a short-term binary bet, waiting for the next round of regulatory progress to take shape remains your best move. Should you buy stock in Canopy Growth right now?

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Story Continues Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $377,990!* Or when Nvidia made this list on April 15, 2005...

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See the 10 stocks » *Stock Advisor returns as of July 25, 2026. Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The Motley Fool has a disclosure policy. Thinking About Buying Canopy Growth? You May Want to Wait for This 1 Thing to Happen First.

was originally published by The Motley Fool For Canopy Growth (NASDAQ: CGC), as with most cannabis stocks, the next key catalyst has nothing to do with the industry or the economy. Instead, what will likely cause marijuana stocks to surge or sink from here has to do with an upcoming decision from the U.S.

Drug Enforcement Administration (DEA). This decision wouldn't resolve all of Canopy's regulatory headwinds, but since it could spark another round of bullishness, let's dive into the latest. Missed Nvidia in 2009?

This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia.

Continue » Image source: Getty Images. The DEA, Schedule III, and what it could mean for Canopy Growth The DEA's efforts to reschedule marijuana to Schedule III have been months in the making, with hearings on the matter only taking place recently. Legal experts seem confident that these hearings will lead to a decision that bodes well for the cannabis industry, but it's unclear whether a final decision will finally arrive.

Still, given President Donald Trump's executive order issued last December, which called for reclassification to occur "in the most expeditious manner possible,"