7 Best Marijuana Stocks to Buy Now | Investing

Earlier this year, the U.S. Department of Health and Human Services said it recommends reclassifying marijuana from a Schedule 1 drug to Schedule 3, a development greeted with enthusiasm by the legal marijuana industry.

If the rescheduling happens, then the industry would be able to come out from under the shadow of Internal Revenue Service Code Section 280E, which prohibits marijuana companies from taking certain tax deductions and credits that federally legal businesses enjoy.

That would remove a huge impediment to profitability, and in September marijuana stocks rallied to the year’s high point on the news.