SA Quant Evaluates Cannabis Stocks Following Trump's Rescheduling Order
Market Reaction to Executive Order: Cannabis stocks faced a decline after President Trump signed an executive order reclassifying marijuana, which, while not legalizing it federally, may offer tax reductions and benefits for cannabis businesses.
Top Performing Stocks: Organigram Global (OGI) leads the list of cannabis stocks with a Buy rating and a YTD performance of 31.06%, while Cresco Labs (CRLBF) and Trulieve Cannabis (TCNNF) follow with Hold ratings and strong YTD gains.
Quant Ratings Overview: Seeking Alpha’s Quant Ratings evaluate stocks based on valuation, growth, momentum, and profitability, with ratings ranging from 1 to 5; a score of 3.5 or above is considered bullish.
Notable YTD Performances: Despite holding ratings, stocks like Ascend Wellness (AAWH) and Jushi Holdings (JUSHF) have shown impressive YTD gains of 176.92% and 170.10%, respectively.
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- Investment Outlook for 2026: Barron’s Investor Circle reporters are preparing to analyze the investment landscape as 2025 comes to a close.
- Focus on Future Trends: The emphasis is on identifying key trends and opportunities that may shape investment strategies in the upcoming year.
- Market Predictions: Insights and predictions regarding market movements and potential sectors for growth are being gathered.
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Market Performance: The stock market experienced moderate gains due to softer inflation data and stable unemployment, with the Dow Jones and S&P 500 rising, while the Nasdaq rebounded, indicating investor confidence in a potential rate cut by the Federal Reserve in 2026.
Earnings Highlights: Micron Technology exceeded expectations and raised its guidance, boosting AI-related semiconductor stocks, while Nike's cautious outlook on global demand, especially in China, led to a decline in its shares.
Sector Resilience: Transportation and travel sectors showed strength, with FedEx reporting solid quarterly results and Carnival Corporation reinstating its dividend and forecasting strong demand for 2026, despite ongoing macroeconomic uncertainties.
Investor Sentiment: Reports indicated a shift in focus from hype around AI to companies demonstrating clear profitability, with notable bearish sentiments surrounding stocks like Meta and Novo Nordisk, which faced challenges in their respective markets.
- Market Reaction: Traders are currently driving down the prices of pot stocks.
- Executive Order Impact: The negative sentiment may overlook the potential positive effects of President Trump's executive order aimed at reducing restrictions on cannabis products.
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Trump's Executive Order Impact: A leveraged ETF focused on the American cannabis industry is expected to rise following President Trump's executive order aimed at easing federal restrictions on cannabis.
AdvisorShares MSOS Daily Leveraged ETF: The AdvisorShares MSOS Daily Leveraged ETF has seen a significant increase in its Momentum score, indicating strong investor interest amid regulatory changes, despite a recent pullback in its value.
Market Volatility: The fund experienced a notable decline of 50.59% after a previous drop of 26.91%, attributed to uncertainties regarding banking regulations in Trump's order, which were anticipated by the industry.
Overall Market Sentiment: Despite a high Momentum score, the ETF faces unfavorable price trends in the short, medium, and long term, reflecting mixed market sentiment towards cannabis stocks.

Executive Order on Marijuana: President Trump signed an executive order to loosen federal regulations on marijuana, directing the U.S. Attorney General to expedite its rescheduling to Schedule III, which would allow for more research and medical use, though it stops short of full legalization.
Access to CBD Products: The order aims to improve access to hemp-derived CBD products by directing efforts to create a clear regulatory pathway through the FDA, while also restricting potentially harmful products.
Political Reactions: The decision received mixed reactions; Senate Minority Leader Chuck Schumer supported it as a positive step, while some Republicans criticized it as harmful to youth and a shortsighted policy.
Impact on Cannabis Stocks: Following the announcement, cannabis stocks initially surged but later retreated due to the lack of expected banking provisions, although many stocks have seen significant gains in anticipation of the order.








