Charlotte's Web CBD oil has benefitted from a growing trend in the US. With the popularity of CBD soaring, the company behind the oil, Charlotte’s Web Holdings Inc, (TSX:CWEB) (OTCQX:CWBHF), has established itself as a leading pure-play CBD investment.
Currently, CWBHF stock is selling for $16.05 USD on the OTC exchange.
Charlotte's Web CBD
Shares of the company have skyrocketed in the past couple of years, and Charlotte's Web Holdings has achieved impressive top- and bottom-line growth. According to SeekingAlpha, the figures include:
- Increasing revenues from $14 million in 2016 to $70 million in 2018.
- Sales in 2019 are projected to be anywhere between $120–$170 million.
- Skyrocketing operating margins from 6.7% to 21.6% over the same time period "due to operating leverage and a decline in SG&A and R&D expenses as a percentage of sales."
Demand and Predictions
Charlotte’s Web CBD oil is now one of the most sought after products in the US by consumers looking to try CBD. For those not in the know, CBD is a naturally occurring cannabinoid extracted from the cannabis or hemp plant. It has become the subject of intense public interest and scrutiny due to its potential health benefits. The oil can be consumed on its own or by being infused in a by-product such as edibles, drinks, or creams.
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The rise in interest for CBD has generated a huge industry, and now this industry is estimated to be worth $16 billion by 2025, according to Cowen & Co. Cannabis researchers from the Brightfield Group are even more optimistic; they predict the market will grow to $23.7 billion through 2023 with demand increasing 700% in 2019 alone.
Its report details further:
“CBD is the next healthcare phenomenon. It is so effective for so many conditions, is natural, non-psychoactive and has no known serious side effects [...] It can be grown domestically as a substitute for tobacco and provide a much-needed cash crop for American farmers.”
The Takeaway
Charlotte's Web CBD oil is a leading product in this burgeoning industry. Herein lies the massive potential awaiting this company and its shares. With its plantations increasing 187% and new product lines added to the market, Charlotte's Web Holdings now distributes to over 6,000 retailers across the US, boosting its reach and overall sales potential.
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