Charlotte's Web stock was ignited after the company announced the Kroger deal last week. Shares surged almost 42% on the news, but come Tuesday, August 6, they corrected. CWBHF stock has since fallen back to $19.85 USD at the time of writing.
Despite a hugely volatile market of recent weeks that caused a significant sell-off in May, Charlotte's Web stock has still managed to pack on a massive 73% year-to-date.
There's a reason this stock remains high on the one-to-watch list. Distribution.
Charlotte's Web Stock and Distribution
The Kroger deal was not only a nice boost for the Charlotte's Web Holdings (TSX:CWEB) (OTCQX:CWBHF), but it also gave the entire sector something to shout about. Was it a coincidence that the marijuana index rose roughly 5% in the same period?
But that aside, the Kroger (NYSE:KR) news signaled the beginning of sales for "Charlotte’s Web products in multiple states with a plan to roll out to a total of 1,350 store locations in 22 states.”
Now, the company has a massive reach for its line of CBD-infused tinctures, roll-ons, capsules, and creams; its products are on sale at more than 8,000 retail locations across 22 states in the US. These include some of the US's biggest retail brands, such as Walmart (NYSE:WMT) and Target (NYSE:TGT).
Now with Kroger added to the list, investors are obviously anticipating huge sales from this huge distribution footprint.
And then there's the potential deal with Amazon (NASDAQ:AMZN). Yes, Charlotte's Web has reportedly been in talks with the e-commerce giant.
If those talks amount to a significant distribution deal, you can bet that Charlotte's Web stock will skyrocket on that potential.
This year alone has seen Charlotte’s Web Holdings add more than 4,650 retail locations; its presence has more than doubled.
As it expands its reach, the company has also expanded its product line. Now it has a line of CBD gummies as well as an oil suitable for dogs.
Analyst Estimates for Charlotte's Web Stock
While the market has been very questionable in recent months, Charlotte's Web still remains a leader in its space, and you can be sure that its massive distribution footprint is one reason why. According to MarketRealist:
"Two analysts gave Charlotte’s Web Holdings a “strong-buy” rating, while five analysts polled by Thomson Reuters gave it a “buy” or equivalent rating. Charlotte’s Web Holdings received a mean consensus target price of 32.27 Canadian dollars, which represents a potential upside of 14.4%."
Translation? Watch. This. Space.
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