Tilray Brands, Inc. (NASDAQ:TLRY) shares are trading higher Tuesday. Here's a look at what's going on.

The Details:

Cannabis companies' stocks have rallied recently on renewed optimism that the DEA may reschedule marijuana to a Schedule III substance.

Last week, FDA Commissioner Robert Califf told a House committee that there is "no reason" for the DEA to delay the rescheduling of marijuana from Schedule 1 to Schedule 3 of the Controlled Substances Act. He also suggested medical and recreational marijuana could have separate regulations.

Tilray has been a frequent trending stock on WallStreetBets as of late, and last week CIBC analyst John Zamparo maintained Tilray with a Neutral rating and lowered the price target from $2.25 to $2.00.

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TLRY Stock Forecast in 2030:

Predicting the future in stock prices over long periods of time is challenging. Wall Street analysts use complex models that take into account interest rates, economic growth, competitive advantages, management teams and historical profitability, among a host of other factors.

If, as an investor, you want to assume most of the major factors remain stable, you can use trend analysis as a helpful tool. Using a longer term trend line or historical performance of the stock, you can aim to forecast a stock's annual rate of return.

For Tilray Brands, over the past 5 years, it's annualized stock performance is -48.47%, and if you assume that trend continues for another 5 years, you can expect a stock to trade at $0.07.

Using a trend line (see how to perform this function here), If you choose to use a trend line, connect your two points and look into the future to the point in time in which you're curious. Once you've identified that stock price, you may want to consider what type of conditions would need to exist for the stock to justify the share price – be it an outside influence or managerial decision making.

TLRY Price Action: According to Benzinga Pro, Tilray Brands shares are up 4.49% at $1.86 at the time of publication Tuesday.

Image: 7raysmarketing from Pixabay