Canadian pot producer Canopy Growth (CGC), the most valuable weed company in the world, reports fiscal fourth-quarter earnings after the close today. Canopy Growth stock rose Thursday, as did most other marijuana stocks.

Canopy Growth Earnings

Estimates: Wall Street expects Canopy Growth to stay in the red, with a per-share loss of 17 cents, or 22 cents Canadian. Sales are expected to jump 294% from a year ago to $71 million, or 93.67 million Canadian dollars. Canopy Growth holds its conference call to discuss the results on Friday morning.

Results: Due after the close.

Canopy Growth Stock

Canopy Growth stock rallied 2.2% to close at 43.71 in the stock market today, implying a market cap of about $10 billion. The stock is in a cup-type base with a 52.84 buy point, MarketSmith analysis shows. Canopy Growth stock has a Composite Rating of 48 out of a best-possible 99.

IBD generally recommends investors direct their attention to stocks with Composite Ratings of 90 or higher.

As marijuana stocks lose money in a worldwide grab for market share in legal nations, the EPS Rating of Canopy Growth stock remains weak, at 33. The Earnings Per Share Rating measures a company's ability to grow profits. And as Canopy comes under some selling pressure, its relative strength line, which gauges a stock's performance against the S&P 500, has retreated.

New Regulations In Canada

Stifel analyst W. Andrew Carter, in a research note on Wednesday, said Canopy's results would likely "showcase the slower development of the Canadian market." Canada's marijuana stocks are dealing with shortages and other production issues. Those issues have led to sales growth that has disappointed investors.

During Friday's call, Canopy seems likely to face questions about how it will navigate recently released regulations for products like edibles, beverages and vaping devices, which are set to become legal in Canada this year. The new regulations, among other things, limit the amount of THC in a package of cannabis edibles — or something like a six-pack of beverages — to 10 milligrams.

The company could also face questions about its ability to meet demand for those new products, amid current production bottlenecks. Dry buds, joints, tinctures and capsules became legal in October 2018.

'Limited Selection'

Constellation Brands (STZ), the company that sells Corona and other wines and beers, initially invested in Canopy in 2017 with the hopes of developing cannabis-infused drinks. When Constellation invested an additional $4 billion investment in Canopy last year, Constellation said it would support all of Canopy's products.

The regulations on the new cannabis products in Canada take hold on Oct. 17. After that, licensed marijuana producers need to give the government 60 days' notice of their plans to sell those new products. The Canadian government last week said it expected a "limited selection" of the new products to be available for purchase after mid-December.

Rival Canadian cannabis company Aurora Cannabis (ACB) in May said it would be able to meet demand for the new products.

But in recent weeks, shares of Hexo (HEXO) tumbled after fiscal Q3 sales fell from the prior quarter. In April, Aphria (APHA) slid after its quarterly results were below some estimates. Shortages led to fewer kilograms of weed sold for the company, while rising costs also dented results.

Canopy-Acreage Deal, U.S. Advancement

On Wednesday, shareholders of both Canopy and Acreage Holdings, a U.S. cannabis company, approved a planned cross-border merger between the two companies. Under that deal, first announced in April, Canopy would get the right to buy Acreage for $3.4 billion if the U.S. government legalized cannabis on a federal level.

While other companies in the U.S. and Canada have expressed reservations on doing such a cross-border deal themselves, the merger would further Canopy's advance into the U.S. — a much bigger marijuana market where pot is still federally illegal. Canopy also has a license to produce hemp in New York state.

Unlike marijuana, hemp was legalized in the U.S. by the 2018 Farm Bill. Canopy said it plans to invest $100 million-$150 million to produce hemp in the state. CEO Bruce Linton told Yahoo Finance in February that the company plans to invest as much as $500 million in U.S. hemp production in other states.

Other Marijuana Stocks

Among other marijuana stocks, Aurora Cannabis fell 0.5%, losing support at its 200-day line. Tilray (TLRY) jumped 9.3%, above its 50-day line for the first time since March.

Cronos Group (CRON) gained 3.7%. Aphria lost 0.3%.

Akerna (KERN), a cannabis compliance tech company that debuted on the Nasdaq this week, tumbled 26.6% after soaring 224% Wednesday.

Innovative Industrial Properties (IIPR), a cannabis-focused real estate investment trust, jumped 7.5%. The stock has a best-possible 99 Composite Rating.