CBD is having a watershed moment in the US. There's no denying that. With an industry poised to be worth $22 billion by 2022, CBD stocks are hot property. Buying in now means investors get the "early" advantage, and should see returns in kind. So in this burgeoning industry, what US CBD companies should you watch?
Here are two of our favorite CBD stocks on the radar today.
CBD Stocks: The US's Best
You can't list the top US CBD stocks without mentioning Charlotte's Web Holdings (OTCQX:CWBHF) (CSE:CWEB). Grown over 71% in 2018, this company holds the crown of being a market leader in the US.
CWBHF stock currently sells for $22.26 USD up 7.2% on the OTC.
There are several reasons Charlotte's Web Holdings is so popular. One is that it reaps the benefit of "early advantage." Charlotte's Web has been around since before the Farm Bill update, which legalized hemp in December 2018. It was already a reputable name with its products in over 3,000 stores across America.
It also gets pricing power from exclusivity, which is a rare feat in this industry. The Charlotte's Web strain produces little to no THC and heaps of CBD along with small amounts of terpenes and other cannabinoids natural to the hemp plant. In essence, Charlotte's Web CBD is one of the most potent and effective on the market, and its customers are willing to pay for it.
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According to the Motley Fool:
"It's easy to find purified CBD isolate for less than $10 per gram, but customers don't seem to mind paying around $100 for every gram of CBD oils and capsules from Charlotte's Web."
Charlotte's Web Holdings is exclusive because it doesn't sell its seeds. Patients can't get the exact same product from any other producer.
The results are speaking for themselves. The company reported profits of $15 million USD from total sales of $69.5 million in 2018. This CBD stock is definitely worth watching.
CBD Stocks: Elixinol Global
Elixinol Global (OTCQX:ELLXF) is another CBD stock to watch. At $3.22 USD, down 6.4% on the OTC, this hemp stock has real potential ahead.
Already showing a strong upside, these shares have more than doubled since September 2018. But there's more to go.
Elixinol Global comprises three separate companies, but the main arm of this business (and the one to watch) is Elixinol US. This unit manufactures and distributes hemp-based dietary and skin care products to the US market. It also has an impressive export business with 40 countries across the globe on its list.
The company saw a surge in revenue in the first half of 2018. It reported revenues of $12.5 million USD—an increase of 119%. The CBD sector has only grown since and continues to do so, so significant growth should be ahead in 2019.
Performing this strongly in 2018 shows the potential upside ahead in 2019—with the passing of the Farm Bill, Elixinol can only grow its US market share.
What CBD stocks do you have your eye on? Let us know!
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