The Canadian cannabis sector is starting to see a nice rebound of late. Stocks like
Canopy Growth (TSX:WEED)(NYSE:CGC) have rightly rebounded in line with other growth stocks today. Investors have become much more optimistic of late. Therefore, it’s no surprise Canopy has rebounded more than 140% from its 52-week low.
Here’s why I think more upside could be on the horizon for this stock in 2021.
Cannabis 2.0 products are likely to (finally) take off
The launch of cannabis-infused beverages and other Cannabis 2.0 products has been met with an overwhelming “meh” from investors. The market for these goods remains miniscule. That said, I see tremendous growth potential on the horizon for this nascent sub-sector.
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Various COVID-19 recovery plays have been surging of late, correcting upwards following the excessive (and unwarranted) damage they took when the stock market fell off a cliff back in February and March.
Food court kingpin
MTY Food Group(TSX:MTY) is a name I’ve been pounding the table on is up nearly 240% from its lows of March. And
Cineplex(TSX:CGX), a battered movie theatre darling, has been a falling knife that I encouraged investors to reach for back in the depths of October when the stock was trading at a mere $5 (shares are now worth more than $9).