Cannabis stocks have been red-hot following Tuesday’s election. The skyrocketing marijuana group has been led by Aurora Cannabis Inc. (NYSE:ACB), which is up 135% in the past two days alone.

Voters in New Jersey, Arizona, South Dakota and Montana legalized recreational marijuana use on Election Day, while South Dakota and Mississippi also legalized medical marijuana.

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The new state cannabis laws will expand the legal U.S. marijuana market, but the massive moves in weed stocks suggest something may be brewing that is much larger than the handful of states that voted to legalize on Tuesday.

Election Takeaways: On Thursday, DataTrek Research co-founder Jessica Rabe said there are three big-picture takeaways for cannabis stock investors from Tuesday’s election results:

“The more states that legalize recreational marijuana — especially populous ones like New Jersey (8.9 million people) and Arizona (7.3 million) this election — the more pressure it puts on the federal government to address the issue,” Rabe said.

Stocks On The Move: In addition to Aurora, here are some of the other top cannabis stocks that have made the biggest gains in the past two days:

• Tilray Inc. (NASDAQ:TLRY) is up 71.6%.
• Cronos Group Inc. (NASDAQ:CRON) is up 35.9%.
• Canopy Growth Corp. (NYSE:CGC) is up 25.1%.

Benzinga’s Take: The ultimate prize for cannabis stock investors isn’t adding a handful of new US states to the mix every few years. The catalyst that could completely change the industry is full U.S. federal legalization, and investors seem to see Tuesday’s election results as potentially bumping up the timeline for that outcome.

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