The U.S. Federal government is likely to decriminalize cannabis in America, but there are many obstacles that could hinder its growth, such as restricted capital access and health risks. We believe it is better to avoid the currently fundamentally poor cannabis stocks Curaleaf, (CURLF) for investors. Canopy growth (NASDAQ:) and Grow Generation (GRWG). Analysts have recently downgraded these stocks. Read on.Although the U.S. cannabis industry has been gaining steam, in-part due to the hopes around a Republican-led legalization effort, the health risks associated with the use of marijuana and its strong addiction in adolescents could curb the industry’s growth. Although marijuana has become mainstream in some states, the federal crime of growing cannabis violates the Controlled Substances Act.

A growing number of players have entered the marijuana space due to the increasingly favorable laws surrounding it. This makes the sector highly competitive. This could have a negative impact on the market share for existing players.

This backdrop suggests that it might be prudent to stay away from cannabis stocks Curaleaf Holdings, Inc., Canopy Growth Corporation, (OTC), and GrowGeneration Corp. (NASDAQ:). Analysts have downgraded the stocks recently due to weak fundamentals.

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