CBD is arguably the hottest commodity to have come out of the entire marijuana market. CBD stocks, therefore, are some of the most sought after securities out there. Now, one of the biggest names in this industry, Aurora Cannabis (TSX:ACB) (NYSE:ACB) has begun selling CBD oil in one of the largest international markets, Germany.
The news should excite investors.
CBD Stocks to Watch
At the time of writing, ACB stock is up 0ver 10% on the NYSE. Selling for $8.77 USD per share, it seems the news has indeed caused a stir.
It's not just hype. There is a stark reality here; the CBD market is growing fast, and Germany is expected to see increasing demand for CBD oils in the next three years, which Aurora will no doubt now be able to capitalize on.
According to the Motley Fool:
"German medical cannabis sales aren't yet anywhere close to the projections for three years from now. Even though Aurora Cannabis is the leader in the market, its sales remain relatively low."
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Aurora established itself as an industry leader in Germany by acquiring Pedanios in May 2017. Pedanios was the top importer, exporter, and distributor of dried cannabis flower and is now aptly renamed as Aurora Deutschland.
CBD Stock Market: Aurora
In its most recent quarter, Aurora showed that only 6% of its total cannabis revenue came from sales in Europe. At first glance, that might cause concern. But the German medical market was notoriously slow to get going due to licensing pitfalls and other regulatory issues. Predictions now say that this market will be very big for medical cannabis and its related products. So much so, that Arcview Market Research and BDS Analytics have pegged sales to hit $1.6 billion USD by 2022.
CBD Stocks and CBD Oil
CBD oils and products are expected to take a majority share of that figure. Often a more popular choice for medical patients than dried flower, using CBD oils mean a user doesn't need to smoke cannabis. Further, CBD oils and products are simply more expensive to buy than dried flower. A higher premium will equal higher revenue for Aurora.
"Aurora should enjoy higher demand in future quarters as it sells cannabis oils in Germany. That higher demand will translate to higher sales."
So today, ACB stock is climbing nicely as investors wrap their heads around the potential lying in wait here for Aurora.
Are you a fan of CBD stocks? Who is your eye on?
Featured Image: Canva
