The legalization of hemp farming in the US has opened the doors to a massive industry. Hemp-derived CBD (cannabidiol) is expected to be the US's next big commodity. In light of this, investors are snapping up hemp stocks where they can.
Two of our favorites are Hemp Inc and Charlotte's Web Holdings.
Hemp Stock to Watch: Charlotte's Web Holdings (OTCQX:CWBHF)
Today on the market, CWBHF stock is down -3.53% but fear not, this hemp stock has been on one massive bull run since January kicked off. In fact, it has grown over 18% since the turn of the calendar.
Selling for $14.58 at the time of writing, CWBHF stock has become an investor favorite. Charlotte's Web Holdings was already top dog in the US for its hemp-based cannabidiol wellness products, claiming a large percentage of the market share.
The company is likely to increase its shares further with a growing number of retail stores set to carry its products in 2019. This equals a massive growth in revenue.
You don't need to be a scientist to understand what lies in wait for this hemp stock when this happens.
Hemp Stock to Watch: Hemp Inc. (OTC:HEMP)
HEMP stock hasn't fared as well as some of its rivals. Considering the momentum the passing of the US Farm Bill caused in this sector, it's fair to say that Hemp Inc has underperformed at best. It's a much smaller stock, selling for $0.030 USD at present.
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But the company is banking on its purchase of the largest hemp processing factory in North America to bolster its leadership in the industrial hemp space. Located in North Carolina, the plant is housed in a 70,000,000 square foot warehouse on 9 acres. It seems this hemp stock CEO, Bruce Perlowin, is expecting this factory to be the jewel in the crown:
"It took $20 million in three and a half years to build that plant. Now that it’s built, North Carolina becomes the inheritors of that infrastructure. It is going to be hard for farmers anywhere else that don’t have a local processing center to process the hemp. I am glad we did it. North Carolina is a great state and can grow a lot of hemp.”
Interest in this hemp stock is growing; the stock’s recent average trading volume has increased 34% over regular levels. Add to the mix its major top-line growth, the fact that year-over-year quarterly revenues grew 414.1%, and we may just see HEMP stock take off soon.
The Bottom Line
Estimations abound on how big the US hemp-based CBD market will be, but if we take $22 billion by 2022 as a ballpark figure, hemp stocks have much more room to run still.
Featured Image: Canva
