The marijuana industry is set to triple within the next five years. There is a strong push to decriminalize it in the United States and worldwide. With this expected growth, there is a chance to get in there and profit!
One of the ways to profit is the stock market, so you need to understand the ins-and-outs of the market. But how do you know what CBD companies to invest in? Read on for a look at the five best CBD stocks to invest in for 2020!
1. Cronos Group Inc.
Cronos Group is a Canadian cannabis company and was the first marijuana stock to trade in the United States. Recently, they bought a popular CBD skincare company, Lord Jones, for $300 million. They’ve had a steady profit increase since 2018, and show no signs of slowing down.
2. GW Pharmaceuticals
GW Pharmaceuticals is a well known British pharmaceutical company that remains one of the pioneers of the CBD and marijuana industries. They were the company that offers Nabiximols, the first cannabis plant-derived medicine for multiple sclerosis that received market approval in the world. Bank of America rates GW Pharmaceuticals as a “Buy” and gives a $230 price target for its stocks.
3. Canopy Growth
Canopy Growth is the largest legal cannabis company in the world. Minority investor Constellation Brands installed two top executives as CEO and CFO of Canopy. This new management introduced strong initiatives to improve Canopy’s finances.
They also dialed back their expenses and lessened their excess capacity. That isn’t to say that they aren’t doing new things. With Canada opening up the sale of cannabis-derivative products, they are looking at a new market for CBD beverages and edibles.
4. Charlotte’s Web Holdings
Charlotte’s Web Holdings is a Colorado-based cannabis company that sells hemp-based CBD oil and other products. Their products were picked up by major retailers Kroger and CVS which should give the company some much-needed exposure. While the company missed its revenue and earnings mark, its stock is still up sixty-five percent since the beginning of the year.
With the regulatory uncertainty in the FDA about food products, a cannabis testing lab have to be careful until those regulations have been relaxed. Once that happens, cannabis companies like Charlotte’s Web will have many new revenue opportunities available to them. This all leads to a “Strong Buy” analysis from Wall Street.
Aphria is the world’s third-largest cannabis producer. They have started moving to CBD products instead of dried cannabis, the sales of which are in decline. Currently, Aphria is waiting for legal status for its marijuana-based CBD.
Wall Street has indicated that it believes Aphria will become profitable this year. Its stock avoided the decline that hit the larger Canadian names in the cannabis industry. In addition, Aphria stock prices have stayed steady and logged a twenty percent gain since the start of the year.
The Best CBD Companies to Invest In
These five companies have some of the best ratings from Wall Street and Bank of America. This makes them great CBD companies to invest in for 2020 and 2021.
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