Cannabis stocks are due for a boom soon. The U.S. government is still attempting to decriminalize pot, and cannabis stocks have been a disappointment for years, but we’ll get there eventually. And among cannabis companies, Canopy Growth (NASDAQ:CGC) is well-suited for hypergrowth. Look to buy the dip in CGC stock while weed stocks as a whole are down.

Although the United States has yet to decriminalize marijuana, other countries and governments are making strong progress with legalization.

Canada’s Recent Success With Weed

Canada, for one, is making great strides. In 2018, the Canadian government legalized recreational weed.

However, this wasn’t the shining moment everyone expected it would be.

Consumers continued to turn to the black market for a variety of reasons, and weed stocks didn’t take off like they should have.

For one, the Canadian government was too restrictive on taxes. Poor tax decisions led to black market marijuana costing less than legal weed. Naturally, many continued to acquire cannabis via illegal means.

Distribution was another area Canada failed to deliver. A lottery system was put into place with a hard cap on the number of stores able to be opened.

But, fast forward to 2020, and Canada finally got it right. They replaced the lottery system and created a better legal framework.

The price of legal cannabis finally dropped below the price of black market cannabis, and for the first time in history, legal pot spending in Canada topped black market spending. This trend accelerated throughout 2020 and is expected to continue throughout 2021.

Basically, what many investors expected to take place in 2018 is happening now.

Even in other countries, such as Uruguay, Mexico, Poland and Ukraine, legalization has arrived or is on the horizon.

Even the U.S. Is Making Progress

In the United States, things are progressing more slowly, but still surely.

The Cannabis Administration and Opportunity Act failed to pass, but individual states are still making headwinds.

Back in 2020, five states voted to legalize cannabis, including traditionally conservative states like Montana and Arizona.

The government may be struggling to figure out what it wants, but it can’t delay the inevitable.

When the US finally legalizes cannabis, and as other countries’ weed industries continue to blossom, things will really begin to take off.

Young consumers are rapidly pivoting from alcohol to weed, which only piles on more demand to an already popular good. The weed industry is a $14+ billion market today, but will rival the alcohol industry when it reaches $100+ billion by 2030.

CGC Stock

Canopy Growth is as solid a play as any when it comes to buying pot stocks before they truly take off.

They have the biggest pile of cash, and they’re also supported by a multi-billion-dollar alcoholic beverage company — Constellation Brands (NYSE:STZ). This gives them the most purchasing firepower to invest in emerging opportunities in this space.

And that is of utmost importance in early-stage industries like the cannabis industry. Whoever invests first and establishes their presence first gets to benefit from first mover’s advantage.

Canopy Growth is that company when it comes to pot. The long-term potential for CGC stock is huge.

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On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.

By uncovering early investments in hypergrowth industries, Luke Lango puts you on the ground-floor of world-changing megatrends. It’s the theme of his premiere technology-focused service, Innovation Investor. To see Luke’s entire lineup of innovative cutting-edge stocks, become a subscriber of Innovation Investor today.