Charlotte’s Web stock has been showing high volatility this week. On Tuesday, the stock dived by as much as 11% but by the very next day, the stock recovered and closed with gains of 10.50%. CWBHF stock is up another 4% in today's trading session. Let's do a quick analysis of Charlotte’s Web Holdings (TSX:CWEB) (OTCQX:CWBHF).
There was no material news that could have caused this bounce, so it may come down to nothing more than the volatility that the cannabis and hemp sectors have become famous for. Let's find out.
Outperformer in 2019
Ever since the Farm Bill was passed at the end of last year, the hemp market has grown at a significant rate, and one of the bigger beneficiaries of this growth has been Charlotte’s Web Holdings. Charlotte’s Web stock has performed reasonably this year so far, but the current week has been a strange one.
That being said, it is interesting to have a closer look at the prospects of Charlotte’s Web Holdings before making a judgment about the stock price action. The company is focussed on the United States hemp market, and over the past months, it has raised its production capabilities significantly.
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Moreover, it has boosted its retail presence at a highly impressive rate. After inking distribution deals with big-ticket names like Kroger (NYSE:KR) and Vitamin Shoppe (NYSE:VSI), it has taken its network to as many as 8,000 stores. The company has projected that its revenues are going to grow over the next two years. Charlotte’s Web has projected that the 2019 revenues are going to be in the $120 million to $140 million range.
On the other hand, the company has made a name for itself in the hemp-based CBD industry and produces a wide range of products that have become highly popular. At this point in time, Charlotte’s Web Holdings is the biggest company in the CBD space by market share, and it has continued to hold onto the position despite the emergence of competitors.
Having been established in 2013, the company has steadily grown into a behemoth, and experts believe that Charlotte’s Web stock could have an upside.
What do you think?
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