Charlotte’s Web CBD continues to clock amazing highs after turning bullish early in the year. Charlotte’s Web Holdings (CSE:CWEB) (OTCQX:CWBHF) stock is already flirting with record highs after a stellar start to the year. A 100%+ rally has seen the stock outperform the overall cannabis sector and the upside action shows no signs of exhaustion.
Charlotte’s Web CBD: Strong Financial Results
One of the catalysts fuelling the upward momentum in CWBHF stock is a stellar financial report that underscores underlining growth. A 74% year-over-year increase in revenue has helped Charlotte’s Web CBD join an exclusive club of profitable cannabis plays.
Charlotte’s Web CBD reported revenues of $69.5 million for the full year ended December 2018. Gross profit surged to $52.3 million after a 75% year-over-year increase. The stellar financial results were in part boosted by Charlotte’s Web Holdings registering an 80% retail network expansion, made up of more than 3,680 retail doors.
Charlotte’s Web CBD delivered a net income of $3.2 million or $0.03 a share, up from $2.4 million or $0.03 a share reported in 2017.
Record-Breaking 2019 Outlook
Management is projecting yet another record-breaking year, which could also explain why CWBHF stock is skyrocketing. The passing of the 2018 Farm Bill last December, according to the management, is a development poised to give rise to unique opportunities that the company intends to take further advantage of.
“We believe this important legislation will have a positive impact on consumer access to hemp-derived CBD products and for our valuable farming communities throughout the country,” said Hess Moallem, President and Chief Executive Officer.
CWBHF Stock Analysis
Buoyed by solid performance when it comes to revenue generation and net income growth, analysts have initiated coverage on the stock of Charlotte’s Web CBD with favorable ratings. Analysts at Cormack Securities currently rate CWBHF stock as a buy with a share price target of $28.
Price action indicates CWBHF stock could make a run for the $28 share price target. While the stock has pulled back from the $24 share mark, this could simply be a minor correction pending further movements on the upside. The fact that the stock is trading above the 20-day and 50-day moving averages affirms the bullish trend.
There are plenty of reasons to consider a CBD company for your portfolio. So do you see the value in Charlotte’s Web CBD?
Featured image: Canva