7 Best CBD Stocks That Are Worth Your Investment
Even though it was once frowned upon, CBD has made its way into the mainstream, and has grown to a point where CBD companies are now trading their stocks. Investing in CBD stocks is still new and may get confusing. However, it’s a risk worth taking.
In this list of stocks worth investing in, you’ll find stocks from the three sectors —producers, recreational, and medical marijuana. This is because the cannabis market is growing.
According to Arcview Market Research and BDS Analytics (PDF), the global marijuana market is expected to reach $32 billion by 2022. This only proves that investing in marijuana will be worthwhile in the long run.
Without further ado, here are seven of the best CBD stocks to invest in.
- Curaleaf Holdings (CURLF)
Curaleaf is a U.S. MSO operating in 23 states. Among those states is New Jersey, representing the biggest opportunity among the many states that legalized marijuana for recreational use, such as CBD gummies and other edibles.
Top rated cbd cartridges are an area where rapid growth has been anticipated for a long time. According to a report from ArcView Market Research and BDS Analytics, consumers in the United States and Canada are expected to spend $4.1 billion on marijuana edibles by 2022.
Curaleaf will benefit from the New Jersey market, but this will also attract consumers from neighboring states such as New York and Pennsylvania. In the second quarter of 2020, Curaleaf reported an impressive 142% revenue growth and 180% gross profit growth year over year.
The rating for Curaleaf, according to Cantor Fitzgerald, is “overweight,” and the price target for CURLF stock is $18.
- Canopy Growth Corp
Canopy Growth, which was founded in 2013, has the most sales of any cannabis company worldwide, and it’s growing! The company’s fiscal year 2020 ended with a 76% growth in revenue, bringing the company $399 million.
Canopy Growth owns Tweed, one of the most recognizable recreational marijuana brands in the industry, and it’s scaling up production to keep up with the demand. The Bank of America analysts gave Canopy Growth a “buy” rating, making it one of the top cannabis stocks to consider.
- Aphria Inc (APHA)
One major issue for all Canadian licensed producers, or LPs, has been flower price depreciation. However, Canadian LPs like Aphria could have “positive collateral benefits” from the recent U.S. election since Joe Biden has taken over the White House.
Although federal legalization may still be two years away at least, the potential federal rescheduling of cannabis and its decriminalization of adult-use marijuana could take Aphria and other Canadian LPs to the next level.
Aphria’s 2020 third-quarter revenue stood at $144.4 million. That’s 96% higher than what it previously had in 2019 and 68% more than the quarter before. Cantor Fitzgerald rates it as “overweight” and an $8.95 price for APHA stock.
- Cresco Labs (CRLBF)
Cresco beat the consensus analyst sales estimates by 30% in the second quarter and exceeded their predicted earnings by nearly 200% before taxes, interests, amortization expectations, and depreciation.
The successive sales growth of Cresco’s 42% was the best growth rate among all of its large MSO peers in the second quarter. Cresco’s Illinois market will be a major near-term growth driver for its success, and the acquisition of Origin House should boost organic growth.
- Green Thumb Industries (GTBIF)
Green Thumb Industries is a U.S. MSO operating in 12 states, including Florida and California. Green Thumb has one of the best risk profiles of all Cantor’s top-rated MSOs.
It has expanded its reach to Pennsylvania and Illinois without going over budget on its balance sheet.
Green Thumb’s revenue will grow from $527 million in 2020 to an astonishing $982 million by 2022. The rating for GTBIF stock from Cantor Fitzgerald is “overweight” and $29 price for the stock.
- Trulieve Cannabis Corp. (TCNNF)
Trulieve Cannabis is an MSO operating primarily in the state of Florida. Trulieve continues to maintain a dominant market share of the Florida medical marijuana market.
Apart from that, it has a significant chance to grow its business in other states, such as Massachusetts, California, and Connecticut.
Trulieve is only getting started as the chance of Florida voters legalizing recreational marijuana in the 2022 midterm election is high.
The rating for Trulieve, according to Cantor Fitzgerald, is “overweight,” and the price target for TCNNF stock is $60.
- GW Pharmaceuticals (GWPH)
GW Pharmaceuticals is a biopharmaceutical company, unlike the other cannabis stocks on this list. Its main goal is creating cannabis-based drug therapies, and their leading drug, Epidiolex, which the Food and Drug Administration approved, is used to treat pediatric epilepsy.
GW’s third-quarter Epidiolex sales exceeded the expectations of many. There are also predictions that they will continue the penetration into adult patients and also set up shop in Europe.
The rating for GWPH stock from Cantor is “overweight” at $165 price stock.
Conclusion
Regulations, laws, and the mindsets of people are constantly changing. More states are legalizing marijuana for recreational and medical use, and companies quickly rush to fill the demand.
Investing in some of the stock above can set you up for higher returns as the industry continues to expand. If you’d love to know more about investing in CBD stock, start at the very base — do your research first.
You can supplement your knowledge with the numerous guides available on the internet and also consult the experts. You’ll get all the information you need to start investing in the cannabis industry.
Thank you,
Glenda, Charlie and David Cates
