Looking at the cannabis market, many are speculating CV Sciences, Inc. (OTCQB:CVSI) is on the verge of breaking out. From record revenues in its recent earnings report to distribution network expansion, it's not surprising people are thinking this. Nor is it surprising to see CVSI stock trading in the green Friday.
Here's what's been going on.
CVSI Stock: Long-Term Benefits Ahead?
On May 8, CV Sciences, a Las Vegas-area company, announced its Q1 2019 financial results. In the report, CV Sciences highlighted record revenue of $14.9 million, an increase of 85% over the same quarter last year. The company also reported a strong gross margin of 70.8% and that retail distribution increased to more than 3,300 stores.
"We generated 85% revenue growth over prior year, achieving another record quarter, with strong gross margin performance,” said CV Sciences CEO Joseph Dowling.
Since the report was published, it has noticeably strengthened market sentiments, and many believe because of this, CVSI stock is displaying signs of breaking out.
According to Insider Financial, the Las Vegas cannabis company has found its price action floating around the $4 to $6.30 trading range. But if CVSI stock can move above $6.30 -- many think it will -- the company could see its stock hitting 52-week highs. And yet, as easily as the company could maintain an uptrend, CVSI stock could just as easily go back to plunging if it falls below $4.
That's not a worry at the moment, however. Things are looking positive for CVSI stock.
According to Yahoo Finance, as of 2:03 PM EDT, CVSI stock is trading at $5.00. This puts the cannabis stock up 3.31%.
Keep Your Eyes Peeled
At this point, we know what CVSI stock has to do to maintain an uptrend. And with the company's impressive earnings report continuing to impact the stock weeks later, it's very possible the cannabis stock will achieve what it has too. For that reason, cannabis investors might want to keep an eye on CVSI stock.
What do you think, though? Agree or disagree?
Featured image: Canva
