Marijuana stocks rally ahead of midterm elections

Share This Article
November 6, 2018 1:04pm NYSE:MJ

From Tomi Kilgore: Shares of cannabis companies were broadly higher Tuesday, with the sector headed for a sixth-straight gain, as investors wait for election results to see if two more states–Michigan and North Dakota–will make recreational marijuana legal.


The ETFMG Alternative Harvest ETF MJ, +3.92% ran up 4.0%, with 25 of 37 components trading higher. It has gained 19% amid a six-session win streak. The Horizons Marijuana Life Sciences ETF HMMJ, +5.34% hiked up 4.9%. Among the sector’s more-active stocks, Aurora Cannabis Inc. ACB, +3.54% surged 3.3%, Canopy Growth Corp. CGC, +7.94% rose 8.8%, Cronos Group Inc.CRON, +14.18% soared 13% and Tilray Inc. TLRY, +5.46% rallied 5.6%. Shares of GW Pharmaceuticals PLC GWPH, -0.69% slipped 0.8%, although Morgan Stanley reiterated its overweight rating and price target of $227, which was 59% above current levels. Analyst David Lebowitz expects strong demand for Epidiolex, the first cannabis-based drug on the market approved by the Food and Drug Administration, with sales expected to be recorded starting in the fourth quarter. The ETFMG ETF has rallied 30% over the past three months, while the S&P 500SPX, +0.49% has lost 3.5%.

 


The ETFMG Alternative Harvest ETF (MJ) was trading at $34.81 per share on Tuesday afternoon, up $1.39 (+4.16%). Year-to-date, MJ has gained 7.03%, versus a 3.38% rise in the benchmark S&P 500 index during the same period.

MJ currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #59 of 75 ETFs in the Global Equities ETFs category.


This article is brought to you courtesy of MarketWatch.


Read Next



Get Free Updates

Join over 50,000 investors who get the latest news from ETFDailyNews.com!

Most Popular


From Our Partners


Explore More from ETFDailyNews.com

Free Daily Newsletter

Get daily ETF insights from our market experts. Never miss another important market development again!

ETFDailyNews.com respects your privacy.

Best ETFs

We've rated and ranked nearly 2,000 ETFs and ETNs using our proprietary SMART Grade system.

View Top Rated ETFs

Best Categories

We've ranked dozens of ETF categories based on relative performance.

Best ETF Categories