CBD Gummies Stock

CBDISTILLERY

Buy CBD Oil Online

The rampant growth of the cannabis industry has sparked investor interest in CBD oil stocks. Consider investing in these stocks to grow your portfolio organically. Looking to invest in a market with long-term potential? CBD is a great opportunity, as it hasn’t yet reached its full potential in the U.S. As more consumers begin to use CBD and the regulatory market shifts, the CBD market will likely continue growing. Globe NewsWire has estimated that the U.S. CBD market will expand With global CBD sales potentially hitting $22 billion by 2022, here are four CBD stocks you'll want to know about.

Best CBD Oil Stocks

Altria comprises Philip Morris USA, U.S. Smokeless Tobacco, John Middleton, Helix Innovations, and Philip Morris Capital, although the company plans to wind down Philip Morris Capital by the end of 2022. It holds a 10% interest in the world’s largest brewer, Anheuser-Busch InBev. Through its tobacco subsidiaries, Altria holds the leading position in cigarettes and smokeless tobacco in the United States and the number-two spot in machine-made cigars. The company’s Marlboro brand is the leading cigarette brand in the U.S. with a 43% share in 2020. Altria holds strategic investments in JUUL Labs (35% economic interest) and Cronos (42%). They are considered a leader in the cannabis and tobacco industry.

Day Range 43.87 – 45.07 52 Wk Range 41 – 57.05 Open / Close 45.05 / – Float / Outstanding – / 1.8B
Vol / Avg. 6.4M / 10M Mkt Cap 79.1B P/E 46.07 50d Avg. Price 44.08
Div / Yield 3.76/8.33% Payout Ratio 367.35 Total Float – EPS –

Jazz Pharmaceuticals ( XNAS: JAZZ )

Jazz Pharmaceuticals is an Ireland-domiciled biopharmaceutical firm focused primarily on treatments for sleeping disorders and indications in neuroscience and hematology-oncology. Jazz’s product portfolio includes its lead drug, Xyrem, for narcolepsy, Sunosi for improving wakefulness in patients with excessive daytime sleepiness, Defitelio for severe veno-occlusive disease after stem cell transplant, Vyxeos for acute myeloid leukemia, and Zepzelca for small cell lung cancer.

Day Range 150.44 – 151.91 52 Wk Range 126.14 – 169.98 Open / Close 151.33 / – Float / Outstanding – / 62.7M
Vol / Avg. 158.9K / 490.7K Mkt Cap 9.5B P/E – 50d Avg. Price 156.04
Div / Yield – Payout Ratio – Total Float – EPS –

Village Farms Intl ( XNAS: VFF )

As one of the largest and longest-operating greenhouse growers in North America, Village Farms International produces and distributes premium cannabis to national growers in the U.S. and Canada.

The cannabis stock has a market cap of $288 million and trades over 1 million shares per day. It has an EPS of $0.04 and a P/E ratio of 128. Village Farms International generated total revenue of $144 million in 2019, making it one of the best stocks under $10.

Village Farm International recently reported its revenue in Q1 2020 and declared that it has had a profitable business for the 5th consecutive quarter. The cannabis company has also announced that it has expanded its credit facility with its existing lender by $59 million.

Day Range 2.49 – 2.55 52 Wk Range 2.44 – 7.22 Open / Close 2.54 / – Float / Outstanding – / 88.6M
Vol / Avg. 203.9K / 683.3K Mkt Cap 222.2M P/E – 50d Avg. Price 2.84
Div / Yield – Payout Ratio – Total Float – EPS –

GrowGeneration ( XNAS: GRWG )

GrowGeneration Corp. is a premier supplier of cannabis and cannabis-growing equipment. These products include organic nutrients, drip systems, water pumps, air pumps, LED lights and commercial light systems. It is the largest hydroponic supplier in the U.S., with 31 retail and distribution centers.

The cannabis stock has a market cap of $849 million and has an EPS of $0.02. It has an annual dividend yield of $0.02 per share. GrowGeneration has high liquidity and trades more than 1.7 million shares per day. It generated revenue of $79 million in 2019.

Day Range 4.45 – 4.66 52 Wk Range 3.42 – 14.1 Open / Close 4.62 / – Float / Outstanding – / 60.8M
Vol / Avg. 316.9K / 1.4M Mkt Cap 277.2M P/E – 50d Avg. Price 4.81
Div / Yield – Payout Ratio – Total Float – EPS –

AbbVie ( XNYS: ABBV )

AbbVie is a pharmaceutical company with a strong exposure to immunology and oncology. The company’s top drug, Humira, represents close to half of the company’s current profits. The company was spun off from Abbott in early 2013. The recent acquisition of Allergan adds several new drugs in aesthetics and women’s health.

Day Range 140.4 – 141.93 52 Wk Range 128.26 – 175.91 Open / Close 140.95 / – Float / Outstanding – / 1.8B
Vol / Avg. 2M / 5.5M Mkt Cap 248.9B P/E 20.12 50d Avg. Price 144.08
Div / Yield 5.64/3.97% Payout Ratio 76.66 Total Float – EPS –

After the legalization of marijuana in the U.S., many companies are actively engaged in the research, development and distribution of cannabis. Cannabidiol (CBD) is the non-psychoactive substance present within cannabis and its products such as CBD oil has had a major impact on the health and wellness industry.

Take a look at these CBD oil stocks that are generating millions of dollars in revenue this year.

Overview: CBD Oil Stocks

Since ancient times, cannabis has been used as a form of medicine and as a means to induce euphoria. Indian sages have also mentioned the medicinal use of marijuana in Vedic hymns of antiquity.

However, President Richard Nixon banned the cultivation and sale of marijuana in the U.S. as part of his “war on drugs” campaign in 1970. It wasn’t until the Compassionate Use Act of 1996 was passed that California became the first state to legalize marijuana to treat people with severe or chronic diseases. As of 2022, 37 states in the U.S. have legalized the medical use of marijuana and 18 states have legalized the recreational use of marijuana.

See also  CBD Gummies With Valerian Root

According to a recent report by the New Frontier Data, the legal sale of cannabis could reach $30 billion by 2025. Due to such high potential to earn profits, alcohol companies have started to invest big in CBD oil companies.

Constellation Brands Inc. (NYSE: STZ) has invested billions in Canopy Growth Corp. (NYSE: CGC). Molson Coors (NYSE: TAP) invested billions in Hexo (TSX: HEXO). Budweiser (NYSE: BUD) entered a joint venture to develop non-alcoholic CBD drinks with Tilray Inc. (NASDAQ: TLRY).

You can still catch up with the market trend and gain some good earnings by investing in CBD oil stocks today.

Best Online Brokers for CBD Oil Stock

Online brokers let you browse and trade thousands of stocks listed on major stock exchanges. These platforms are bundled with tons of educational resources and tools to let you manage your stock portfolio on the go. Many of these online brokers also allow you to trade stocks commission-free.

Top CBD Stocks You Should Invest in Today

Looking to invest in a market with long-term potential? CBD is a great opportunity, as it hasn’t yet reached its full potential in the U.S. As more consumers begin to use CBD and the regulatory market shifts, the CBD market will likely continue growing.

Globe NewsWire has estimated that the U.S. CBD market will expand to $13.39 Billion by 2024, an annual growth rate of over 40%. We’ve detailed four CBD stocks below that show great potential.

Right now, CBD oil cannot be added to dietary supplements, which are regulated by the FDA. However, a bill was just introduced to Congress to legalize CBD in dietary supplements! This bill has bipartisan support, so the chances of it passing are higher.

This is great news for the CBD market! This means that, over time, higher quality CBD products will become more readily available for CBD users, as less reputable companies are weeded out by FDA rules. Right now, many companies do not follow the FDA’s quality control procedures to minimize risks to consumers.

You’ll see both Canadian and U.S. companies on this list, as Canadian marijuana companies have been relegated to selling only hemp in the U.S., which means that publicly traded companies have focused on hemp sales.

How to Choose a CBD Stock

When choosing a CBD company to invest in, look at their financial filings, required for any publicly traded company.

Key CBD Company Financials

Earnings Per Share (EPS)

This is the CBD company’s net earnings or losses per share. Look at trends of EPS of the overall CBD industry at the time to see how the company compares to competitors.

Price to Earnings (P/E) Ratio

The P/E ratio can show you if a company’s stock is undervalued or overvalued. You generally are looking for a stock with a lower P/E ratio, as this indicates the stock is likely undervalued. A higher P/E ratio could indicate either expected upcoming growth or that the stock is overpriced.

Yearly Revenue Growth

If you look at a CBD company’s yearly revenue, you can get a sense of the direction in which the company is headed. CBD companies are pouring money into technology, equipment, and research. Expect to see continued growth in successful companies over the next few years.

Other CBD Stock Factors

Choose Pure Versus Synthetic CBD

We recommend investing in companies that use pure CBD, instead of the synthetic version. The impact of synthetic CBD on the body is still being studied and, until more data is available, we recommend investing in companies that use the natural version.

Choose Transparency

Companies that offer transparency to consumers are more likely to benefit from the possible upcoming regulatory changes. Look for companies that explain their hemp sourcing and CBD processing practices.

Look at Industry Trends

Over the past quarter many different CBD companies lost revenue, so keep that in mind when looking at a company. Look ahead at what each company is planning; this is also a good way to determine where to invest in the CBD space.

Best CBD Stocks

Canopy Growth (CGC)

Canopy Growth is a Canadian-based mainstream cannabis company that expanded into the CBD market in 2019 by partnering with Martha Stewart. The company has more overall sales than any other cannabis company in the world.

CGC is currently trading at just over $28 per share. The company achieved an impressive 76% revenue growth in 2020. Canopy Growth’s revenue decreased in the past quarter, but due to the recent launch of cosmetics, food, and animal care products, along with celebrity support, Canopy Growth is a good option for an already established brand.

Charlotte’s Web (CWEB)

Charlotte’s Web is a well-known CBD company that focuses on improving lives naturally with high quality CBD products. The company is transparent and offers certificates of analysis on their products. They also offer a wide variety of products.

Charlotte’s Web is currently trading at just over $5 per share. With their growing family of brands, Charlotte’s Web has achieved 28% historical annual growth since 2017. Growth is expected to accelerate, with analysts expecting Charlotte’s Web to grow faster than the rest of the CBD industry.

Pure Harvest Corporate Group Inc. (PHCG)

Based out of Denver, Pure Harvest Corporate Group has different companies that operate in both the traditional cannabis as well as CBD industries. PHCG is a great option if you are looking for a diversified CBD stock. The stock focuses on aggressive acquisition of companies in states with attractive markets for cannabis.

See also  900 Mg CBD Oil

The company expanded into the CBD space by acquiring Prolific Nutrition and changing the name to Pure Harvest Hemp. Pure Harvest Hemp will focus on selling wellness consumer products online.

PHCG is currently trading at $0.67 per share. Although the stock has fluctuated over the past several years, the recent acquisition of Prolific Nutrition and additional investors shows promise for Pure Harvest Corporate Group.

Cronos Group Inc. (CRON)

Cronos Group is based out of Toronto and has a diverse portfolio of companies in the cannabis industry. If you are interested in CBD-infused cosmetic products, Cronos Group recently expanded into three hemp-derived CBD brands, including a skin care brand called Happy Dance—partnering with Kristen Bell.

Since many millennials are adopting CBD into their daily self-care routines, we see a bright future for the CBD side of Cronos Group Inc. holdings. CRON is currently trading at $8.50 per share. The stock has also shown strong year-over-year revenue growth.

If you are looking to not only invest in, but also to try CBD, Joy Organics prides itself in providing premium grade CBD products to our customers. You can rest assured you are only getting safe, high quality CBD, so you know exactly what you are putting into your body.

cbdMD (YCBD)

This North Carolina-based CBD company is one of the largest companies in the industry, with an array of products including tinctures, softgels, and award-winning gummies.

Their 2020 end-of-year reporting showed a 22% increase in net sales year over year—a steady incline in a highly competitive industry.

They’ve made a name for themselves through their vast product line, accessible prices, and athlete partnerships. While their stock prices climbed and fell consistently in their first two years in business, there combination of industry expertise, 2020 growth, and the upcoming industry regulations make this a reliable choice for those hoping to capitalize on this industry’s upcoming boom.

With increasing consumer acceptance of CBD, and the upcoming bill to regulate CBD as a dietary supplement, now is a great time to invest in CBD stocks!

Hannah Smith is Joy Organics Director of Communications. She is driven by her passion for providing clear and accessible wellness and CBD education. In 2015, she received her BA in Media, Culture and the Arts from The King’s College in New York City and before Joy Organics, worked as writer and photographer in the Middle East and North Africa. Her work has been featured on Forbes, Vice, Vox, Denver Post, and the Coloradoan.

4 Stocks Giving Investors Direct Exposure to CBD

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

OTC: MJNA

Medical Marijuana, Inc.

With global CBD sales potentially hitting $22 billion by 2022, here are four CBD stocks you’ll want to know about.

Few if any industries have been as unstoppable of late as legal marijuana. Since the beginning of 2016, most pot stocks have seen their valuations rise by a triple-digit or quadruple-digit percentage, with global growth estimates for the industry soaring following the legalization of adult-use weed in Canada and multiple medical cannabis legalizations in countries around the globe.

How big could the marijuana industry become? That’s really a matter of interpretation, with a variety of Wall Street investment firms projecting anywhere from $50 billion to $75 billion in sales by the end of the next decade, and the duo of Arcview Market Research and BDS Analytics calling for a compound annual growth rate of nearly 27% between 2019 and 2022.

Image source: Getty Images.

CBD offers a compound annual growth rate of 147% through 2022

However, there’s an even hotter industry that’s budding from within the marijuana movement: cannabidiol (CBD). CBD is the nonpsychoactive cannabinoid best known for its perceived medical benefits, and since it won’t get a user high, it’s become an intriguing means of luring in new consumers who’ve never tried a cannabis-related product before.

According to a report from the Brightfield Group, worldwide CBD sales are expected to soar from $591 million in 2018 to as high as $22 billion by 2022, which works out to a compound annual growth rate of 147%, for those of you keeping score at home.

CBD itself can be extracted from two sources: the cannabis plant and the hemp plant. Generally speaking, hemp is a CBD-rich plant with minimal tetrahydrocannabinol (THC) content. THC is the cannabinoid that gets a user high. Meanwhile, CBD content in cannabis plants can be hit or miss, depending on the strain. CBD derived from hemp plants is legal in all 50 states following the December passage of the Farm Bill, whereas CBD derived from the cannabis plant is still considered illicit at the federal level. However, adding CBD of any form to food, beverages, or dietary supplements is a no-no since it still falls under the guidance of the U.S. Food and Drug Administration (FDA).

Four direct players in the CBD space

With this in mind, here are a handful of stocks that’ll provide investors with direct exposure to the burgeoning CBD market.

Image source: Getty Images.

Charlotte’s Web Holdings

Arguably no company is more attractive from a growth perspective relative to CBD than Charlotte’s Web Holdings (CWBHF -5.73% ) . Charlotte’s Web has the highest retail market share for CBD products in the United States, with access to 3,680 retail stores at the end of 2018.

This is a company that focuses entirely on hemp-extracted CBD, meaning that in one fell swoop, via a signature from Donald Trump on Dec. 20, 2018, all of its products became legal in 50 states, with some kinks to be worked out in the near future regarding CBD as a food and beverage additive. In other words, the Farm Bill’s passage rolled out the green carpet for Charlotte’s Web to get its products into new retail locations. Just about the only thing missing at this point is a brand-name retail partnership.

See also  Treatibles CBD Oil Drops

What isn’t missing are profits. Charlotte’s Web has been profitable on an operating basis for approximately two years, with the company generating $69.5 million in sales in 2018, representing 74% organic sales growth. For 2019 and 2020, Wall Street is looking for a successive more-than-doubling in aggregate sales to $152 million and $313 million, respectively. Again, with Charlotte’s Web already profitable, and CBD products typically yielding much higher margins than traditional dried cannabis flower, this company looks to be in excellent shape.

Image source: Getty Images.

CV Sciences

Another CBD stock that finds itself on the right side of the profit column is CV Sciences (CVSI 3.24% ) .

Like Charlotte’s Web, CV Sciences retails a variety of hemp-derived CBD products in retail stores. According to its full-year results reported about a month ago, the company’s PlusCBD brand of hemp products was available in 2,238 stores at the end of the year, which represents a 45% increase from the end of 2017. However, the passage of the Farm Bill has already opened up new distribution avenues for the company, which means its retail door count should expand significantly in the quarters that lie ahead.

For the year, CV Sciences tallied $48.2 million in sales, up 133% from the prior-year period, while recording net income of $10 million. The lone estimate from Wall Street is forecasting 68% sales growth in 2019 and an additional 47% in 2020, with revenue hitting $119 million by the turn of the decade.

It is worth noting, though, that CV Sciences is facing possible legal pushback from a drug it’s developing that combines CBD and nicotine as a smokeless tobacco-cessation solution. Short-seller Citron Research, which often has short positions in the stocks it bashes (i.e., a financial interest), released a report in August 2018 showing that CV Sciences’ combo drug patent application had been rejected by the U.S. Patent and Trademark Office. Citron alleges this was never disclosed to investors, which has been grounds for lawsuits. It’s something to keep in mind if you’re considering CV Sciences as a possible investment.

Image source: Getty Images.

Medical Marijuana, Inc.

Even though it’s a tiny tot, another means of gaining direct CBD exposure is by considering penny stock Medical Marijuana, Inc. (MJNA -2.24% ) . Of course, don’t let the company’s $0.066 share price trick you — it has so many shares outstanding that it’s pretty much a bona-fide small-cap with a $238 million market cap.

As the name implies, Medical Marijuana, Inc. supplies hemp-derived products to the U.S., Mexico, and other international markets. This week, Medical Marijuana announced that it had secured about 100 new retail locations during the first quarter, outpacing internal expectations. Like Charlotte’s Web and CV Sciences, the passage of the Farm Bill looks to have played a big role, with CBD acceptance growing and nontraditional retailers willing to carry select CBD products.

Like its peers, Medical Marijuana has seen its top line moving in the right direction. Third-quarter revenue, reported back in November, was slightly over $16.8 million, representing a 116% year-over-year increase. Unfortunately, it hasn’t been profitable on a recurring basis, but it appears to be working toward that mark. In the third quarter, the company generated an operating profit, after expenses, of $0.6 million.

Keep in mind, though, that revaluations of the company’s investment portfolio can wreak havoc on Medical Marijuana, Inc.’s bottom line, and it has resulted in aggregate losses of $158 million through the first nine months of 2018.

Image source: Getty Images.

GW Pharmaceuticals

Lastly, investors can gain direct CBD exposure with the only marijuana stock to have gained FDA approval for a cannabis-derived drug: GW Pharmaceuticals (GWPH) .

In June, the FDA approved GW Pharmaceuticals’ lead CBD-based oral drug known as Epidiolex as a treatment for two rare forms of childhood-onset epilepsy. In multiple late-stage trials, Epidiolex wound up reducing seizure frequency from baseline by between 30% and 40%, which handily topped the effectiveness of the placebo over the defined treatment range. Epidiolex is currently the only drug approved by the FDA to treat Dravet syndrome, and its only potential competitor, Zogenix, had its new drug application for fintepla refused for the time being, giving GW Pharmaceuticals a clear runway to grow sales.

How big could Epidiolex become? That’s up for interpretation, but most Wall Street companies foresee $500 million to perhaps even north of $1 billion in peak annual sales. In the company’s most recent quarter, we learned that GW Pharmaceuticals sold $4.7 million worth of Epidiolex in its first two months on pharmacy shelves. While it’s had little trouble securing insurer coverage for its seizure therapy that costs roughly $32,500 a year, GW Pharmaceuticals is also going to need more than $4.7 million in quarterly sales to maintain a $5-plus billion valuation moving forward.

Sean Williams has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

How useful was this post?

Click on a star to rate it!

Average rating 3 / 5. Vote count: 1

No votes so far! Be the first to rate this post.