President Trump just said he might reclassify cannabis as having a lower danger level.
On that news, shares of Canopy Growth (SYM: CGC) jumped more than 26%. Trulieve (SYM: TRUL) jumped 36%. And Tilray (SYM: TLRY) closed the day up about 42%. While impressive, all could see higher highs the moment Trump acts on the drug. “We’re looking at reclassification,” Trump told CNBC. “We’ll make a determination ... over the next few weeks.”
If he does reclassify cannabis as a Schedule 3 drug from Schedule 1, it would allow for more research into the drug, and provide more tax benefits to the cannabis industry.
With the story gaining substantial momentum, we expect for related stocks, such as Canopy Growth, Trulieve, and Tilray to rally even higher.
We also expect to see some of the top cannabis ETFs hit higher highs, too.
In fact, here are three you may want to consider ahead of potential reclassification.
Advisor Shares Pure US Cannabis ETF (SYM: MSOS)
There’s the Advisor Shares Pure US Cannabis ETF (MSOS).
With an expense ratio of 0.6%, the ETF was the first actively managed U.S.-listed ETF with dedicated cannabis exposure focusing exclusively on U.S. companies, including multi-state operators, as noted by Advisor Shares. Some of its top holdings include Green Thumb Industries, Trulieve Cannabis, Curaleaf Holdings, and Jushi Holdings to name a few.
ETFMG Alternative Harvest ETF (SYM: MJ)
Or, take a look at the ETFMG Alternative Harvest ETF (MJ). With an expense ratio of 0.75%, the ETF measures the performance of companies within the cannabis ecosystem benefitting from global medicinal and recreational cannabis legalization initiatives, as noted by ETFMG.com. Some of its top holdings include Tilray, SNDL, Cronos, and Canopy Growth.
Roundhill Cannabis ETF (SYM: WEED)
With an expense ratio of 0.41%, the Roundhill Cannabis ETF offers exposure to leading U.S. multi-state operators (MSO). Its top holdings include Green Thumb Industries, Curaleaf Holdings, Trulieve Cannabis, Cresco Labs, and Verano Holdings.
Bonus: Chart of Day
Keep an eye on beaten down shares of Chipotle (SYM: CMG).
According to Piper Sandler, the recent pullback in Chipotle may be nearing its end.
The firm just upgraded the stock to overweight with a $50 price target, which implies a 20% move from current prices. This comes just weeks after Chipotle cut its same-store sales outlook for 2025, which is now the second time it’s done that.
The firm is optimistic that summer promotions could drive demand.
“This led Piper Sandler’s Mullen to raise his revenue and sales forecasts for FY26 and FY27.
For FY26, Mullen now estimates Chipotle’s sales at $13.43B, up 0.07%, and EPS to $1.34 per share, a penny better than the prior estimate. For FY27, his revenue estimate was raised 0.5% to $14.87B, and EPS by 2% to $1.52 per share,” as noted by Seeking Alpha.
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Written by Ian Cooper