TLRY Stock Outperforms So Far in June: Tilray Up 25% This Month

TLRY stock

TLRY stock has been on fire this month and outperforming the broader sector amid positive developments from Tilray Inc (NASDAQ:TLRY).

The cannabis industry in Canada has taken off at a rapid pace ever since the authorities in the country legalized it. Over the past few months, some companies have firmly established themselves as the leaders of the pack. In this regard, Tilray is definitely not one of the top tier firms, and in fact, is comfortably behind the biggest producers and sellers of cannabis. That being said, there are several factors that could work in favor of the company, and hence, Tilray deserves to be considered by anyone who is looking to invest in the cannabis industry.

Overseas Markets Hold Key

First and foremost, the company has a significant presence in the overseas markets, and as the laws pertaining to cannabis become more relaxed, that presence could be leveraged to generate higher revenues. It is worthwhile to note that Tilray supplies the cannabis products that it makes to as many as 12 countries, stretching across four continents, and its international business has grown at an impressive pace as well—all to the benefit of TLRY stock.

In Q1 2019, the company’s international operations soared by 321% year-on-year and made up 8% of its total revenues. On the domestic level, it has made a move into the hemp market in North America through the acquisition of Manitoba Harvest, one of the world’s biggest hemp-infused food company. This acquisition will also give the company a foothold in another fast-growing industry.

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Despite all this, TLRY stock is down 4.50% to $48.19 in Monday's session.

Key Partnerships

However, the partnership deals that Tilray has signed with some big ticket companies are possibly one of the strongest arguments in favor of the company. It's inked a deal with big pharma company Novartis (NYSE:NVS) to create medical cannabis medicines for the Canadian market, which has now expanded into the global market.

Tilray's deal with Anheuser-Busch InBev (NYSE:BUD) to develop cannabis-infused beverages is another important deal, and it is particularly significant since the cannabis beverage market is expected to explode soon.

Another key partnership came in 2019, when it inked a deal with Authentic Brands Group to market cannabis products.

TLRY stock has soared 26% since the beginning of this month. However, it's important to note that the stock is down over 30% year-to-date.

>> Read More Tilray News

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