Buy the Dip Before It’s Too Late: This Canadian Stock Won’t Stay Cheap Forever

Investors might think that cannabis stocks are out, but this one could be the top Canadian stock to consider.

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Let’s have a look at the world of Canadian stocks. Sometimes, the price of a stock goes down. This can make investors a little nervous. But for those who are watching closely, it can also be a chance to buy a good company at a lower price. Right now, a Canadian stock that has seen its price drop quite a bit presents such an opportunity. Some people think this might be the perfect time to consider buying it before the price potentially goes back up.

Cannabis business and marijuana industry concept as the shadow of a dollar sign on a group of leaves

Source: Getty Images

Take a look at Tilray

The company we’re talking about is Tilray Brands (TSX: TLRY). It’s a well-known name in the cannabis industry. Like many companies in this sector, it has experienced some ups and downs in the stock market. Recently, Tilray’s stock has seen a decrease in price. This has caught the attention of investors who are always on the lookout for potential opportunities.

To understand why the price dipped, it’s helpful to look at what the Canadian stock has been doing. On March 27, 2025, Tilray announced its third-quarter fiscal year 2025 financial results. For the third quarter, the Canadian stock reported net revenue of US$188.3 million. In Canadian dollars, based on the exchange rate at that time, this would be approximately $256.6 million. This represented an increase of 31% compared to the same quarter last year.

Looking at other financial details, Tilray reported a net loss of US$105.1 million, or US$0.15 per share. In Canadian dollars, this translates to a net loss of approximately $143.3 million, or $0.20 per share. While a loss isn’t ideal, it’s important to consider the context. The cannabis industry is still relatively young and companies are often investing heavily in growth.

What to watch

The overall cannabis market in Canada has faced some challenges. There have been issues with regulations, competition, and the pace of growth. However, many believe that the long-term potential of the industry is still very strong. As laws and consumer preferences continue to evolve, companies like Tilray, with an established presence, could be well-positioned to benefit.

For investors thinking about this Canadian stock, the current lower price could be seen as an entry point. If the company’s performance improves and the cannabis market continues to grow, the stock price might recover. Of course, investing in the stock market always comes with risks. It’s important to remember that the price could go down further, and there’s no guarantee of a return.

Before making any investment decisions, it’s always a good idea to do your own research. Look into the company’s financials, its plans for the future, and the overall state of the industry. Consider your own investment goals and how much risk you’re comfortable with.

Bottom line

In conclusion, when a Canadian stock’s price drops, it can be tempting to shy away. However, sometimes these dips can present a chance to invest in a company with potential at a more attractive price. Tilray Brands is one such Canadian stock that has seen its price decrease, and some investors might see this as an opportunity to buy before it potentially rebounds. Just remember to always do your homework and understand the risks involved before making any investment decisions. After all, finding a good deal can sometimes mean acting when others are hesitant.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Tilray Brands. The Motley Fool has a disclosure policy.

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