Investors who bought stocks during the COVID-19 market crash in 2020 have generally experienced some big gains in the past two years. But there is no question some big-name stocks performed better than others since the pandemic bottom.
Tilray's Bumpy Ride: One company that has been a solid investment in the past two years has been Canadian cannabis giant Tilray Inc (NASDAQ:TLRY).
Tilray battled a difficult Canadian cannabis market throughout the past two years. The biggest news by far in the past year came in December 2020 when Tilray announced a merger with Aphria in a deal that created the world’s largest international cannabis company by revenue.
At the beginning of 2020, Tilray shares were trading at around $17.60. By the beginning of March, the stock was down to $14.74, after news of the coronavirus spreading in China prompted concerns about a U.S. pandemic.
Tilray bottomed at $2.43 during the pandemic-driven March sell-off. Fortunately for Tilray investors, the dip did not last long.
By May, Tilray shares were back above $10, but the rally stalled at that point until the November presidential election.
A victory by Democrat Joe Biden in November 2020 and a surprise blue wave giving Democrats control of both the Senate and House initially sent cannabis stocks soaring on U.S. federal legalization hopes. Unfortunately, Democrats have failed to make any meaningful progress on cannabis reform up to this point.
Tilray In 2022, Beyond: The stock ultimately peaked at $67 in February 2021 during a retail investor-fueled short squeeze before pulling back to around $6.26 today.
Still, investors who bought Tilray on the day it hit its pandemic low and held on have generated a significant return on their investment. In fact, $1,000 in Tilray stock bought on March 18, 2020, would be worth about $2,576 today.
Looking ahead, analysts are expecting Tilray stock to rebound in the next 12 months. The average price target among the 16 analysts covering the stock is $8, suggesting 27.5% upside from current levels.
