Given the recent trends, it is safe to say that CBD’s popularity has skyrocketed in the last few years. With the recent legalization in 2018 and the availability of scientific evidence proving its benefits, the CBD market is witnessing a steady inflow of new and established companies. The market is experiencing a sizable expansion and consolidation, which has further contributed to an increase in the players in the CBD arena.
If you look at the top-performing stocks in the market, you might find plenty of CBD companies on the list. Are you looking for public CBD companies that you must know about? Read on to learn more about them.
Which are the best three CBD companies you must know about?
On account of the increasing popularity of CBD, there are plenty of companies entering the market. While some offer CBD oil, others are diversifying the product range by providing safe CBD vape pens that work well
Whether you’re planning to invest in a CBD company’s stock or are just curious, you must research well about the top public companies dealing with this cannabis byproduct. Here are some of the top three CBD companies that everyone must be aware of:
1. Charlotte’s Web
It is safe to say that Charlotte’s Web has effectively managed to become a household name today. It is a Colorado-based producer and distributor of hemp-derived CBD products. With the passing of the much-needed Hemp Farm Bill in 2018, CBD products are legal. Since Charlotte’s Web focuses solely on hemp for their CBD products, they have marked their retail presence in more states.
The company has risen to the level, owing to the robust marketing strategies and seamlessly integrating them with a value. It helps them stay connected to their core customers. They have a deeper understanding of their consumer base, which allows them to identify the audience that resonates with the brand’s message. Charlotte’s Web has created a solid foundation for life-long customers and advocates.
The company has over 11,000 retail locations, while the revenue stood at $21.5 million by the end of the Q1 of 2020. The Chief Financial Officer at Charlotte’s Web states that they aim to generate 10%-20% by the end of the year 2020. If you plan to invest in CBD stocks, this company is one of the safest options among the many operating today.
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2. CV Sciences
Based in San Diego, the company CV Sciences is a leading CBD oil producer in the US and sells it under the PlusCBD brand. The company already had a strong presence in the natural food stores, and its extension to the CBD world helped merge itself into the mainstream market. CV Sciences has a unique pharmaceutical division that aims to produce CBD products for treating medical conditions.
It operates from a 45,500 square feet facility in San Diego, which has allowed them to increase its production capacity by 500%. The company primarily offers CBD in classic forms like Plus CBD oil, capsules, and soft gels. It has helped them emerge as a top choice even for conservative users. Users can easily find these products on the shelves of a nearby store and get them online.
The stock CVSI has managed to increase its profits by 11% in the last year. While the numbers have been fluctuating recently, experts believe that the company can earn 13% in the coming year. With both sales and revenue increasing exponentially, CVSI stock is a good investment opportunity.
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3. GW Pharmaceuticals
GW Pharmaceuticals is a global biopharmaceutical company that now occupies a leading position in medicine and cannabinoid science. The company is known for its solution for multiple sclerosis treatment, called nabiximols or Sativex, the first cannabis-based derivative to get market approval. GW Pharmaceuticals has also developed an oral formulation Epidiolex to treat epilepsy.
This pharmaceutical giant has managed to build a strong foundation based on prescription-based CBD products. It has become a leader with a revenue of $120.6 million in the first quarter of 2020. The revenue has tripled in the last year, while the sales of Epidiolex contributed to the majority of revenue.
GW Pharmaceutical is focusing on expanding its products’ reach, ensuring they become accessible for the patients. The company has two established commercial markets in Europe – Germany and the UK but is planning to expand to Italy, Spain, and France. It is still building a strong foundation for itself, but the GW Pharmaceutical stock offers fewer risks to investors than other stocks of recreational companies. This makes it an outstanding stock to buy and hold in your portfolio for years.
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Final Thoughts
As the cannabidiol or CBD market is taking off, more and more investors are looking for top stocks to invest in. The passing of the Hemp Farm Bill has given a significant boost to the market, not only in the US but also in many other countries. While many CBD companies are offering stocks to invest in, you need to find well-positioned stocks that provide profits. If you want to invest in the CBD market, you can pick any public company given above and enjoy the profits!
Reference links:
- https://www.fool.com/investing/2019/03/30/3-safe-stocks-to-play-the-cbd-craze.aspx
- https://marketrealist.com/2020/07/analyzing-top-3-cbd-companies-buy-july/