Cannabis Market Leaders on the Rise: CWEB, HEXO, and CURA

Cannabis Market Leaders

In a market that has been struggling to make gains in the last three months, it is a welcomed sign to see some cannabis market leaders on the rise.

Today, some of the biggest brands are moving. Let's check out who they are and why they're able to battle through this tough period.

Cannabis Market Leaders on the Rise

Firstly, it is important to recognize that the marijuana industry has faced a market-wide downtrend in recent weeks. There are three main reasons for this:

  • Canada announced a delay in the sale of edibles and derivatives. Cannabis-infused products will be legalized in October; however, sales are not allowed to start until mid-December at the earliest. This threw the market into disarray as it means many companies won't see returns from this arm for at least two or three quarters.
  • Canopy Growth (TSX:WEED) (NYSE:CGC) fired its CEO. The largest cannabis company by market cap hit the headlines when it ousted its CEO, Bruce Linton. His departure highlighted the imperative need to deliver profits and reminded investors how volatile this industry has been and can be.
  • CannTrust Holdings (TSX:TRST) (NYSE:CTST) caused a market reaction when the company was found to have cultivated cannabis in five unlicensed rooms in its Pelham location. In breaching regulations, the company had a sizeable amount of product confiscated and shook investors' trust in management.

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The broader market reacted across the months of June and July in particular, spurred on by the above news. However, today, there are some massive gains happening as major cannabis market leaders begin to correct.

Cannabis Market Leaders Repairing Losses

Some of the biggest gainers include:

  • Charlotte's Web Holdings (TSX:CWEB) (OTCQX:CWBHF)
  • HEXO Corp (TSX:HEXO) (NYSE:HEXO)
  • Curaleaf Holdings (CSE:CURA) (OTCQX:CURLF)

Charlotte's Web Holdings is up 10.19% and selling for $21.95 USD at the time of writing. Shares are booming on the news that major grocery chain Kroger (NYSE:KR) has begun selling the company's CBD-infused line of topicals and oils.

HEXO Corp is up a much-needed 9.16% at the time of writing. Shares are selling for $5.72 USD. There has been no specific news attributable to this climb; however, HEXO has lost a lot of its 2019 gains in recent weeks. A pairing of sorts has been expected, especially if new investors are deciding to buy on the low.

Curaleaf Holdings announced the acquisition of GR Companies on July 17. The acquisition was welcomed by investors as it makes Curaleaf one of the largest cannabis companies out there. Shares were rocked shortly after, however, when the company received a warning from the US FDA for overly promoting the health benefits of CBD oil. It seems that once again, Curaleaf is pairing those losses as the stock climbs 4.25% and sells for $10.79 USD at the time of writing.

Keep Watch

Keep a close eye on the market right now, particularly Charlotte's Web Holdings, HEXO Corp, and Curaleaf Holdings. The sell-off has created some opportunities to hold a strong position in some valuable stocks for a low price. Will these cannabis market leaders keep rising? What are your thoughts?

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Featured Image: DepositPhotos © SergeyNivens

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