What happened

Shares of the cannabis and consumer packaged-goods company Tilray Brands (TLRY) gained a noteworthy 20.4% over the course of January, according to data provided by S&P Global Market Intelligence. The big gain came in response to a wave of bargain buying across the landscape of beaten-down growth stocks, especially among those listed on the Nasdaq stock exchange. 

Underscoring this point, the Nasdaq index jumped by a noteworthy 10.7% last month. Investors piled into heavily discounted tech and growth equities in January as a result of the Federal Reserve's decision to temper future interest rate hikes, a slowing core inflation rate, and better-than-expected macroeconomic data.

So what

Tilray's stock rose by double digits last month despite the company's underwhelming fiscal 2023 second-quarter earnings report announced on Jan. 9. In the report, Tilray announced that its share of the Canadian cannabis market came in at 8.3% for the three-month period. While the company maintained a leading share of its home market, that share has now contracted by approximately 30% over the past 24 months. 

On the bright side, Tilray's cost-cutting initiative and foray into the alcoholic beverage industry both appear to be paying dividends.

The company reported that cannabis gross profit jumped by 37% in the quarter relative to the same period a year ago, thanks to its overhead reduction program and strategic alliance with HEXO.

Alcoholic beverage sales rose by a noteworthy 56% year over year as a result of the company's acquisition-fueled growth strategy. 

Now what

Is Tilray stock still worth buying? It all depends on your investing timeline. Most analysts covering the stock consider it "significantly undervalued" at current levels.

The catch is that Tilray's bulls are clearly taking the long view with its stock. Most of these current price targets, which call for the stock to more than double in value, are largely based on the company's 2032 financial prospects due to the uncertainity surrounding the push to legalize cannabis in both the E.U. and the U.S.

In the short term, though, Tilray's stock performance will likely be more dependent on investor sentiment rather than its deep value proposition. In turn, investors should expect this equity to remain on the volatile side as the market continues to react to a bevy of mixed macroeconomic data, interest rate updates, and unpredictable inflationary/supply chain pressures emanating from geopolitical events.

Tilray's stock, as a result, is arguably only a buy for investors who are willing to hold for the long term.