CBD Stocks Look Appealing to Investors as Cannabis is Legalized

With recreational cannabis still illegal in the majority of the U.S. states, the relaxation in the CBD and hemp sales has enabled the manufacturers to look for a set customer base in the market. Other businesses would face a tough time in surpassing the cannabis industry as the fastest-growing market in the world.

During the ’90s, people wanted to invest in tech stocks, and their interest moved to real estate during the early 2000s. At the moment, the highest-flying stocks are those of CBD and hemp as the industry saw a 38% increase in 2019. The CBD industry is worth $1 billion, and Wall Street believes that it could reach $16 billion by 2025.

As the US government hasn’t legalized marijuana on the federal level, a lot of people refuse to get involved in CBD businesses, even in the states where it is legal. So, of course, the investors are in a dilemma whether to put their money in this industry or not? While the uncertainty is still prevalent, there are a few reliable stocks that can promise good returns.

Aphria Inc. (TSX:APHA)

Aphria is the leader of cannabis stock in North America. They reported tremendous results for the first quarter of the year that ended on 31st August 2019. As they enjoy the second consecutive quarter of tremendous growth, they have attributed their success to the strong contributions from their Canadian cannabis operations.

They also announced their strategic partnership with ParcelPal Technology, who will be providing a limited service of delivery and distributing Aphris products with the intention of grabbing other markets as well. The net revenue of the company was $126.1 million in the first quarter – an astounding increase of 849% from the prior-year quarter.

Canopy Growth Corporation. (NYSE:CGC)

Based in Canada, Canopy Growth is pursuing its path in the United States. The company is seemingly going to capitalize on the legalization of hemp as it announced its plans to set up a hemp industrial park in New York State. The company was already synonymous with the cannabis sector, but after publicizing this plan, they moved to the front line.

Odds may not be in favor of Canopy Growth as it recently reported losses worth of 1.28 billion Canadian dollars for the second quarter. However, such small hiccups shouldn’t lead you to write off the brand because it is the largest cannabis company by value. Even after bearing these loses, the corporation continues to increase its sales.

Canna One Technologies Inc. (CNONF)

If you want to invest in the big future, Canna One Technologies it is! They rely on Big Data to drive their sales as the markets mature, and a whopping amount of money is pushed into the channels to promote growth. They have architected structured data to retain customers and maintain a competitive advantage in the market.

Canna One has already partnered with regional groups to manage the local laws and regulations regarding CBD. This allows the company to scale at a rapid rate without sustaining the cost and time associated with acquiring licenses and establishing a market. Considering the modern trends, they want to build online marketplaces for cannabis. 

Charlotte’s Web Holdings Inc. (OTC:CWBHF)

Based in Colorado, Charlotte’s Web Holdings boasts the largest share of the U.S. market in CBD. The 2018 harvested hemp results showed 10 times growth as compared to the harvested hemp in 2017. It is one of the only CBD producers which is capable of supplying large quantities of cannabis extracted from its own supply chain.

Lately, the company has partnered with Neilson, bringing the world’s leading CBD brand together with the best market intelligence company. Leveraging the deep product knowledge possessed by Charlotte’s Web, this new partnership will provide unprecedented insight into market trends, brands, and products that will resonate with the consumers.

The Bottom Line

Cannabis stocks are more volatile than your average stocks, with the legality of marijuana always remaining under question. However, it is a changing world, and with the backing of celebrities like Mike Tyson and Snoop Dog, the future of CBD investments looks very strong.

Several publicly-traded CBD companies continue to crop up, but this doesn’t necessarily make the firm a smart investment. The stocks listed above have a good track record and are worth looking at for any investor wondering about the space.

Invest your time and money only on stocks that exhibit qualities like the ones we talk about here to ensure your investments are secure and prosperous. The CBD sector has a very strong future and savvy investors will be the ones to reap the gains.