Should I buy Canopy stock in 2025?

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At HelloSafe, our expert has been monitoring Canopy’s performance for more than three years. Every month, hundreds of thousands of people across Canada rely on us to break down market trends and highlight the top investment opportunities. Our analyses are intended solely for informational purposes and are not investment recommendations. In line with our ethical charter, we have never received, and will never receive, any payment or compensation from Canopy.

What is Canopy?

How much is Canopy stock?

The price of Canopy stock is rising this week. As of now, Canopy Growth Corporation (TSX: WEED) trades at $7.42 per share, showing a 2.9% increase over the past 24 hours and a notable 6.4% gain this week. The company's market capitalization sits at $660 million, with an average 3-month trading volume of 2.1 million shares. Canopy currently reports a P/E ratio of -2.8 and does not pay a dividend, reflected by a 0% yield. The stock exhibits a beta of 1.99, highlighting its tendency for higher volatility—a factor for investors to watch closely as markets evolve.

Our full analysis on Canopy stock

After a comprehensive examination of Canopy Growth Corporation’s most recent financial disclosures, as well as a meticulous review of its stock performance over the past three years, a clear narrative emerges regarding the company’s repositioning and potential. Leveraging a multi-layered analytical framework—combining quantitative financial metrics, advanced technical indicators, real-time market data, and competitor benchmarking via proprietary algorithms—our analysis seeks to identify pivotal inflection points. So, why might Canopy stock once again become a strategic entry point into the North American cannabis sector in 2025?

Recent Performance and Market Context

Stock Price Resilience and Momentum

In 2023 and into 2024, Canopy Growth Corp. (TSX: WEED; NASDAQ: CGC) has displayed notable resilience amid sector-wide volatility. After bottoming at multi-year lows near $3.00 CAD in late 2023, Canopy shares have appreciated over 60% YTD in 2024, recently consolidating in the $4.50–$5.00 CAD range. This robust price action contrasts favorably with several peers still seeking directional clarity.

Favourable External Developments

• In March 2024, Canopy finalized asset sales related to its non-core Canadian division—streamlining operations and liberating $60 million in liquidity.
• Positive regulatory momentum, including renewed discussions around U.S. federal cannabis legalization, has lifted market sentiment in the sector—benefitting companies with strategic U.S. exposure like Canopy.
• The March 2024 quarterly report showed cash burn reduction and operating improvements, reassuring investors on Canopy’s path to sustainability.

A Supportive Sector and Economic Backdrop

• Macroeconomic trends are gradually shifting in Canopy’s favour:
• With the Bank of Canada pausing its rate hikes and inflation receding, consumer discretionary spending—including cannabis—has begun to recover.
• As industry consolidation proceeds, companies with strong brands and balance sheets are increasingly favoured—drawing renewed institutional focus to Canopy as a potential consolidator and innovation leader.

Technical Analysis

Bullish Signals Emerge

• Relative Strength Index (RSI): As of early June 2024, Canopy’s daily RSI oscillates around 52–58, indicating strengthening momentum without overbought signals. This places the stock in an ideal zone for further upward movement should buying pressure persist.
• Moving Averages: Both the 21-day and 50-day exponential moving averages (at $4.47 and $4.40 CAD, respectively) now reside below the current price, acting as dynamic support and confirming medium-term trend reversal.
• MACD: The Moving Average Convergence Divergence has crossed above its signal line—an early sign of an uptrend building strength.

Key Levels and Momentum

• Support: Robust support is evident at $4.20 CAD, where buy orders have repeatedly absorbed downward pressure.
• Immediate Resistance: Short-term resistance at $5.15 CAD, with a clear break potentially opening a path toward $6.00 CAD.
• Upside Structure: Encroaching upon the three-month high and with no significant technical overhead until $6.00 CAD, the path appears clear for continued appreciation in the coming quarters.

Fundamental Analysis

Growth Trajectory and Operational Efficiency

• Revenue stabilization: Fiscal Q4 2024 revenue of $89 million CAD, a 15% sequential improvement and outpacing consensus estimates.
• Cost controls: SG&A expenses cut by 22% year-over-year; Adjusted EBITDA loss narrowed significantly, indicating a pivot toward breakeven.
• Strategic footprint: Exit from less profitable international markets (excluding U.S. and core Canadian segments) focuses resources on the highest RR markets.

Attractive Valuation Context

• P/S Ratio: Now below 2x, compared with 3–4x for select peers, suggesting a discount relative to growth prospects.
• EV/Sales (forward): 1.7x, nearing sector lows, providing a margin of safety for new entries.

Structural Strengths

• Innovation: Fastest-growing ingestible extracts (beverages, edibles) portfolio in Canada, with market share gains in Q1 and Q2 2024.
• Brand equity: Strong, recognized Canadian retail presence (Tweed, Deep Space).
• U.S. exposure: The Canopy USA entity (pending regulatory triggers) offers investors a rare “call option” on the world’s largest cannabis market.

Volume and Liquidity

Sustained Trading Volumes Provide Confidence

• Volume surge: Daily trading volumes have averaged 1.2 million shares in Q2 2024, consistently higher than the 2022–2023 period—signaling growing institutional and retail engagement.
• Float efficiency: With a 52-week float turnover ratio above 115%, the share structure supports both dynamic price discovery and efficient capital deployment.

Implications for Investors

• Market confidence: Heightened volume during upward price phases suggests conviction-driven accumulation rather than speculative rotation.
• Liquidity: Investors can expect consistent fills and narrow bid–ask spreads—important for both trading and strategic positioning.

Catalysts and Positive Outlook

Product, Regulatory, and M&A Catalysts

• U.S. Market Optionality: The ongoing progress toward U.S. cannabis legalization—most recently, the reintroduction of the STATES Reform Act—could unlock transformative access for Canopy’s U.S. assets.
• New product launches: The 2024 rollout of higher-margin infused beverages and edibles positions Canopy to gain additional market share and elevate average revenue per user.
• ESG and Sustainability Initiatives: Canopy’s 2024 ESG report details significant advances in energy efficiency and product stewardship—adding appeal especially for institutional investors with sustainability mandates.

Favorable Macro Tailwinds

• Sector M&A: As smaller Canadian LPs continue to be absorbed or exit, Canopy stands well-placed as an acquirer with renewed financial flexibility.
• Tech Integration: Investments in cultivation automation and supply chain digitization could drive further gross margin improvement in 2025 and beyond.

Investment Strategies

Short-Term: Seizing Technical Opportunity

• Ideal for tactical traders: With the current consolidation above $4.40 CAD and clear momentum signals, short-term participants could view Canopy as a prime candidate for “breakout” positioning, particularly ahead of Q1 fiscal 2025 results.

Medium-Term: Play the Catalysts

• Regulatory gambit: Investors aiming to benefit from policy-driven moves (notably U.S. legalization news) may find Canopy’s optionality compelling in a 6 to 12-month window.
• Product cycle: New launches and operational milestones scheduled across Q3–Q4 2024 create a cadence of news flow that can support re-rating and multiples expansion.

Long-Term: Strategic Portfolio Anchor

• Growth at a discount: For those targeting multi-year secular trends—cannabis normalization, wounded-competitor consolidation, and brand-driven sector leadership—Canopy currently trades at a meaningful discount to historical averages.
• Risk/reward balance: The company’s improved balance sheet and diversified asset base afford investors exposure to industry upside with risk controls in place.

Is It the Right Time to Buy Canopy?

With a series of operational improvements, strengthening financial health, visible technical signals, and multiple identifiable catalysts on the horizon, Canopy Growth Corporation may be entering a new bullish phase. The stock’s favorable valuation, robust trading volumes, and focused strategic execution represent compelling arguments for those seeking high-upside opportunities in the North American cannabis market. In this context, the fundamentals justify renewed interest, and Canopy’s unique positioning in Canada and the United States appears especially well suited for investors attentive to shifts in regulatory and sector dynamics.

Canopy thus stands out as a revitalized leader, and at current levels, the stock seems to represent an excellent opportunity for those seeking exposure to the next potential phase of cannabis sector growth—a narrative substantiated by solid numbers, strengthened by technical momentum, and reinforced by genuine strategic catalysts unfolding over the coming quarters.

For investors with a long-term perspective and an eye for transformation stories, Canopy’s trajectory suggests it is well worth serious consideration as a core component of a forward-looking, diversified Canadian equities portfolio.

How to buy Canopy stock in Canada?

Buying Canopy Growth stock online is simple and secure when you use a regulated Canadian broker. Today, retail investors have easy access to the stock market from their computer or smartphone, with accounts protected by industry-standard security and oversight. You can either buy Canopy shares directly (spot buying) to own the stock outright, or trade stock contracts for difference (CFDs) to speculate on price movements without owning shares. Both approaches have distinct features and risks. To help you get started, you’ll find a detailed broker comparison table further down this page.

Spot buying

A spot or cash purchase means that you are buying Canopy stock directly on the stock market, becoming a shareholder. You'll need to open an account with a regulated online broker. Most Canadian brokers charge a fixed commission per stock order, typically around $4.99–$9.99 CAD per trade.

Example

Suppose Canopy Growth (WEED.TO) trades at $7.00 CAD per share. With a $1,000 CAD investment, you could buy around 142 shares ($1,000 − $5 commission = $995; $995/$7 ≈ 142 shares).

Gain scenario: If the Canopy stock price rises by 10%, your shares would be worth $1,100 CAD.

Result: That’s a $100 gross gain, or +10% return on your investment (before tax).

Trading via CFD

CFD (Contract for Difference) trading allows you to speculate on Canopy’s price without actually owning the shares. With CFDs, you only deposit a fraction of the trade’s value (the margin) and can use leverage to amplify potential gains or losses. Fees for CFDs mostly include the spread (the difference between buy/sell price) and, if you hold overnight, a daily financing fee.

Example

You open a $1,000 CAD CFD position on Canopy with 5× leverage, giving you $5,000 in market exposure.

Gain scenario: If Canopy’s share price increases by 8%, your position gains 8% × 5 = 40%.

Result: That’s a $400 gain on your $1,000 stake (not accounting for fees such as spread or financing).

Final advice

Before you start investing, it’s important to compare brokers’ fees, platforms, and account conditions, as these can significantly impact your actual returns. Whether you choose direct share ownership or CFD trading depends on your personal objectives and risk tolerance. Take the time to review our broker comparison table below to make the decision that best fits your goals as a Canadian investor.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1

Star Trader

4.9

Minimum Deposit

$50

Discover

with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

Discover

with our partner IFC Markets

#3

Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

Discover

with our partner Avatrade

Our 7 tips for buying Canopy stock

The latest news about Canopy

Canopy Growth announced the closing of the sale of its BioSteel business, streamlining operations and boosting financial stability.
On June 20, 2024, Canopy Growth confirmed the completion of the sale of its sports beverage unit BioSteel to a U.S.-based buyer. The divestiture is aligned with Canopy’s ongoing transformation plan targeting profitability and cash flow improvements by shedding non-core assets. This move is expected to enhance the company’s liquidity position and sharpen its focus on the Canadian cannabis segment, a key factor for investors monitoring Canopy’s turnaround efforts.

Canopy Growth received Health Canada approval to expand cultivation benchmarks at its Smiths Falls campus.
Within the last week, Health Canada authorized Canopy to increase its licensed production capacities at its Smiths Falls, Ontario facility, a development that supports the company’s strategy to strengthen its domestic supply capabilities. This regulatory approval is anticipated to both lower production costs and facilitate innovation in new product formats, reinforcing Canopy’s market presence and competitiveness within the Canadian cannabis sector.

Recent analyst upgrades cited improving fundamentals after Canopy’s cost-cutting initiatives and asset sales.
Major Canadian financial institutions, including BMO and CIBC, noted in reports released since June 17, 2024, that Canopy Growth’s recent strategic actions have begun to improve its balance sheet and operational outlook. These reports emphasized that the company’s disciplined approach to capital allocation and streamlined focus on core cannabis markets could lead to improved earnings before interest, taxes, depreciation, and amortization (EBITDA) in upcoming quarters, signaling cautious optimism for shareholders.

Canopy’s announcement of new cannabis-infused beverage lines received favorable market response, supporting diversification efforts.
This week, Canopy revealed the upcoming launch of several new cannabis beverage products specifically targeting the Canadian recreational market. Early retail partnerships and positive feedback from distributors suggest strong initial demand, a factor that is viewed as supportive for top-line growth and increased shelf space for Canopy’s brands in the evolving beverage segment.

Industry data showed a rebound in Canadian retail cannabis sales volumes, with Canopy among the beneficiaries.
According to Statistics Canada figures published June 21, 2024, national cannabis sales surged by 7% month-over-month in May, driven by robust consumer demand for dried flower and edibles. Canopy maintained its position among the top three licensed producers, with market share gains attributed to new product launches and expanded distribution agreements. This sector-wide momentum is viewed as a tailwind that could positively influence Canopy’s near-term revenue trajectory.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.