Should you invest in CBD Stocks?
Are you looking for the next best thing to invest in when it comes to making money and want to know if CBD stocks are a good option? Do you want to know if it will be reliable and a good place to put your money?
It’s no surprise that the CBD industry has exploded in recent years, as more and more people are turning to natural remedies for relief. With a growing number of states legalizing the sale of medical marijuana, it is becoming easier than ever to find this product at your local dispensary.
These days there are so many different products on the market, and online head shops like Grasscity that offer great smoking gear are constantly expanding their selection. As the cannabis industry grows, many people are eager to get in on the ground floor. This is understandable considering that this industry is expected to grow by leaps and bounds over the next few years. However, as with any investment opportunity, there are risks involved and you should do your research before you make a decision. Continue reading to find out more about whether you should invest in CBD stocks.
What does the Cannabis market look like?
The very first thing to talk about when it comes to the cannabis market and CBD stock is knowing exactly what you are investing in. Cannabis has been illegal for recreational use for a very long time, and this includes the compound CBD which is commonly used for medicinal reasons.
Since 2012 there has been gradual legalization of both recreational and medicinal cannabis around the US and the world at large. Legalization has made cannabis products much more popular and encouraged the industry to continue to grow at a rapid rate. CBD is a component within cannabis that is known as the healing compound and is used for medicinal reasons to treat and help with a multitude of ailments. This compound has no psychoactive effect, and this means that it is more readily available to people in places such as drug stores, grocery stores, and more.
This has allowed the CBD market to grow incredibly quickly and become something that will most likely remain popular for a long time.
Why you should invest in CBD stocks
When it comes to investing in stocks you need to be particular about your choices and make sure that you are choosing stocks that will grow in the future rather than tank after a few months.
Knowing what is going to happen with the stocks will always just be an educated guess, however, some guesses are better than others, and seemingly CBD is a good bet to make.
People may be nervous to invest in CBD stock because of how new the market is. CBD is a newer product to the market than marijuana itself and many people don’t know about it just yet, however, it has proven to have steady growth and looks as though it will only grow more in the future, making it a worthy investment, despite it still being a new market.
What does the future look like?
Investing in stocks should be based on future predictions of what might happen in that particular market and whether it looks as though it will grow and bring in more money. People don’t want to invest in stocks that have no potential, however, this isn’t the case with CBD.
The steady growth of the CBD industry through its products and services, in all sectors, provides a healthy indication of a prosperous future. Through more research into the market, it becomes clearer that the future of the CBD industry looks as if it is only going to grow in the future.
This means that any investments in this market will do incredibly well, and you will be more likely to make money than lose it. However, just like with every market and industry, you will go through good and bad times, and you just need to hold out for the spike in the market.
Investing so early on in the game gives you the potential to grow your stocks massively without having to spend insane amounts of money to get started.
Best CBD Stocks to Buy: Top Ten Picks
With the growing popularity of medical marijuana across North America, many investors consider investing in stock-exchange listed companies. Investing in CBD stocks is a good idea if you’re looking for an investment with high course potential. Many different companies produce CBD products, and they all have their strengths and weaknesses. As someone who has done extensive research on the best cbd stocks to invest in, I will list my top 10 favorite companies for 2022 listed on NYSE and Nasdaq.
Keep in mind, CDB stocks are currently not in investors focus, and many of them are at longer-term lows right now. It needs to become an attractive investment field with more media dominance again before investments become worthwhile again.
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We’ve added current analyst estimates and company fundamentals to each company in the list using the fundamental analysis platform Stock Rover. You can use the free 14-day Stock Rover trial to check the most recent statistics, peers and stock analysis.
What are CBD Oil Stocks
CBD oil stocks refer to companies that produce and distribute CBD products. Companies like these are usually best suited for long-term investments because they have high potential growth over the next decade or more.
What is CDB Oil
CBD oil is a type of natural herb that has been used for many different purposes, including medical and recreational. CBD oils are typically extracted from hemp plants, making them legal in the United States under federal law.
What Brokers to Use to Buy CDB Oil Stocks
The best brokers to buy CDB oil stocks with are either TD Ameritrade or E*TRADE. They’re both straightforward to use and have many great tools that will make investing easier for beginners.
The Best CDB Stocks to Buy
Table of Contents
1. Jazz Pharmaceuticals (JAZZ)
The Ireland-domiciled biopharma company Jazz Pharmaceuticals focuses on treatments for indications in neuroscience, sleeping disorders and hematology-oncology. Jazz Pharmaceuticals still has a negative EPS of -5.46 with a market cap of $10.5 billion. In December 2021, the stock hit a mid-term low at $117.64 and then started a rally to nearly $170 in April 2022.
2. Constellation Brands (STZ)
Cannabis investing ideas also lead to this company with a currently neutral to positive market sentiment. Constellation Brands currently has projected quarterly revenue of 83 million and estimated earnings per share of $1.55.
Constellation Brands is a global leader in beer, wine and spirits with a wide variety of popular brands like Corona Extra and Ballast Point.
Constellation Brands made an investment into Canopy Growth Corporation (WEED) for $191 million worth a few years ago due to the potential growth that cannabis holds. Constellation Brands acquired a 40% ownership stake in Canopy Growth and became the third-largest investor in the cannabis industry. The investments were the right decision, and the stock price went up significantly since.
After forming a mid-term low at $104.28 in March 2020, the price per share increased to a new all-time high in April 2022 at $261.52.
3. AbbVie (ABBV)
AbbVie is a company with a market cap of $200 billion and is a science-led global healthcare company formed in 2013 by the acquisition of Abbott. AbbVie’s product portfolio includes more than 125 products, including pharmaceutical and over-the-counter medications and CBD oil. The stock had a great run from the $60 level in 2000 and market a all-time high in April 2022 at $175.91.
4. Altria (MO)
Altria is a significant producer of tobacco products and has invested in cannabis companies in the past. They have made investments from over $200 million to an equity stake in Cronos Group Inc. a few years back, which is one of the largest Canadian cannabis producers. Not only do they own these stocks, but they also sell cigarettes as well, and the growth potential is enormous. The stock formed a mid-term low at $30.95 in March 2020, and is now trading at $55.23.
5. Corbus Pharmaceuticals Holdings, Inc. (CRBP)
Corbus Pharmaceuticals Holdings, Inc. is a clinical-stage pharmaceutical company focused on developing and commercializing novel therapeutics to treat rare, chronic inflammatory diseases that are often difficult to treat with existing therapies. CRBP is still Nasdaq listed but might get OTC listed when it remains trading below $1. Right now, the stock is trading at $0.35.
6. Tilray Inc (TLRY)
Tilray is a Canadian company that produces and sells cannabis products, both medical marijuana. They’re best known for being the first company to legally export cannabis from North America for medical purposes through Europe (Greece). The latest news is that they have entered the world of cannabis recreation. The company is focused on research and development, which has allowed them to offer new products like their High CBD Oil Drops for anxiety relief or insomnia issues. They’re also well-known in Canada because all medical marijuana patients are registered with Tilray’s online system called CanvasRx. Many day traders trade Tilray shares due to its high volatile price action during market hours. The price per share is at $5.3 right now.
7. HEXO Corp. Common Shares (HEXO)
HEXO Corp. is a Canadian cannabis company focused on distributing world-class products within the adult-use and medical markets. HEXO Corp. is one of the leading exporters in Canada’s burgeoning cannabis industry to countries around the world where marijuana is legalized for medicinal or recreational purposes. Like CRBP, the stock is trading below $1 for a while (at $0.41 right now) and might get delisted from Nasdaq.
8. Cronos Group Inc. (CRON)
Cronos Group Inc. is a company focused on medical marijuana and recreational cannabis for adult use. They’re best known for producing, selling, and marketing products in Canada, Germany, Israel, Italy and Australia. Cronos Group announced that they were partnering with Ginkgo Bioworks to engineer yeast that produces cannabinoids genetically. The good thing with Cronos is that they have a lot of room to grow based on solid company fundamentals. Right now, the stock is trading at $3.08.
9. Aurora Cannabis (ACB)
Aurora Cannabis is a Canadian company that is a producer and seller of medical cannabis products. They’re best known for being the first marijuana company to be listed on an American stock exchange. Recently Aurora Cannabis announced that they were entering the European market by acquiring a German company. The stock is currently trading at $3.1. They recently had a formal bid accepted and are set to acquire CanniMed Therapeutics, which has experts speculating that the company could be worth $600 million. Aurora is one of those stocks best to buy because it’s still undervalued due to its marijuana production being in Canada. Still, they have made their intentions known for expansion into Europe unfolding additional potential.
10. ETFMG Alternative Harvest ETF (MJ)
You have already read about the top favorite CBD stocks to buy. Investors can also participate in CBD oil stock growth by buying the exchange-traded fund. The ETFMG Alternative Harvest ETF is a fund that invests in companies operating in the global cannabis industry. The ETFMG Alternative Harvest ETF is an umbrella term as it includes a variety of sectors. The ETF is currently trading at an 5-year low at $8.45.
Introduction to Marijuana Stocks
Marijuana stocks are made up to become a thriving and profitable industry. With the legalization of cannabis in Canada and previously in the United States, stocks are bound to arise.
Cannabis companies are not only for those in North America but all over the world, from Europe to Africa. Cannabis stocks are an opportunity that investors can’t afford to miss out on now! One of the best next best things in speculative investing is CBD oil stocks and similar companies. With marijuana becoming more mainstream, there will be a rise of people looking to invest in this sector.
Marijuana Stocks With the Most Momentum
Momentum investing is when you invest in stocks that have gone up faster than the market. If a stock has risen more than the market, momentum investors think it will continue to do so because of factors that caused it to go up. Investors want to buy stocks with high returns and count on a trend continuation in the subsequent months for the stock. The concept is to analyze data of potential Marijuana stocks to buy via Nasdaq, NYSE or even OTC. While investments in ETFs are often compound profits over the years by contribution to the ETFs, specific investing in Marijuana momentum stocks aim for short-term growth with higher risk and higher potential. Keeping an eye on company financials, earnings, cannabis use, and news is important too.
The Role of the Farm Bill
The farm bill was passed to legalize the production and sale of hemp. This is a major step in the right direction for marijuana stocks and will help make it more mainstream and provide employment opportunities with its legalization. The best thing about investing in cannabis companies is that you can get an ownership stake through stock buybacks or dividends.
How to Gain Access to the Global Cannabis Stock Market
An online broker allows you to invest in marijuana stocks from around the world. It is a great way to diversify your portfolio, find new opportunities, and provide liquidity for international investments. By doing this, you can also invest in companies involved with CBD oil processing and production.
Conclusion About the Best CBD Stocks to Buy
Marijuana stocks are a great way to diversify your portfolio and find new opportunities. Investing in them provides liquidity for international investments and owning an ownership stake through stock buybacks or dividends.
Cbd stocks are a wise investment choice that is forecasted to grow exponentially in the future. The product development recently has resulted in a massive uptick in the interest of CBD stocks, and as such, it is crucial to stay up-to-date with this market.
The best CBD stocks have shown strong revenue growth over the past five years and are positioned for rapid future growth due to their product development. The earnings per share are solid for many companies in the marijuana industry, and more and more brands enter the profitable cannabis market.
It is essential to diversify your portfolio, so it is wise to invest in a range of stocks. Marijuana-focused companies with solid fundamentals, which will allow investors the best returns for their investment at a reasonable stock price, are a good starting point.
About the author: Alexander is the founder of daytradingz.com and has 20 years of experience in the financial markets. He aims to make trading and investing easy to understand for everybody, and has been quoted on Benzinga, Business Insider and GOBankingRates.