As the cannabidiol industry makes historical strides, investors are looking toward stocks driving the market. The CBD industry was bolstered in 2018 when the Farm Bill was passed, legalizing hemp production in the United States and opening up a plethora of opportunities.
Marijuana stocks have seen their fair share of volatility in the market, being one of the hottest trends and witnessing considerable falls. Yet, this does not imply the trend has run its course. Rather, it shows the industry is evolving and expanding to new heights. One huge district coming out is CBD, the non-psychoactive compound of marijuana.
As Warren Buffett wisely stated, “Never invest in a business you can’t understand.”
It is important to educate ourselves when it comes to investing in the stock market. We encourage you to do your due diligence in learning and researching about potential CBD stocks to invest in. Here are a few to watch in 2021.
Top 4 CBD Stocks to Watch in 2021
Headquarters: Cambridge, United Kingdoms
Epidiolex made ground-breaking news in 2018 as the FDA approved this CBD oral solution for the treatment of seizures associated with two rare and severe forms of epilepsy in patients two years of age and older. This is the first FDA-approved drug which contains a purified drug substance derived from marijuana, and also the first for the treatment of patients with Dravet syndrome.
In addition, GW has obtained approval in numerous countries for Sativex, a CBD spray used to treat spasticity (muscle stiffness/spasm) due to multiple sclerosis (MS).
Charlotte’s Web Holdings is one of the CBD industry’s front runners. Their products are sold through more than 20,000 retail locations. If CBD sales rise, Charlotte’s Web Holdings will be one of the first indicators to show it.
CV Sciences has two business divisions: consumer products and pharmaceuticals. In the consumer products category, the company manufactures and sells CBD products. In the pharmaceuticals division, the company rigorously works toward research and development of CBD therapeutics.
There is much growth potential with these two divisions in place. Nonetheless, proceed with heed as pharmaceuticals can be famously volatile, and the FDA’s approval of drug development can affect the stock’s course rapidly.
Curaleaf Holdings, Inc. is a leading U.S. cannabis company which cultivates and manufactures cannabis, and produces a grand variety of cannabis products, including hemp-derived CBD products. It has a presence in 23 states, owns and operates 101 dispensaries, 23 cultivation sites, and 30 processing sites, and has over 3,000 employees in the U.S.
The company boasts an increase in revenue from the second quarter of 2019 to the second quarter of 2020: 142% increase in total revenue, 112% increase in retail revenue, and 422% increase in wholesale revenue.