Top 10 CBD Oil Stocks
Before going into the discussion of investing in CBD (or cannabidiol) oil stocks, it may be beneficial to look at the possible health benefits of this oil first. This allows shareholders to better understand why many are venturing into this investment.
Several studies have found that CBD oil may:
- Help reduce the risks of developing diabetes
- Help fight cancer
- Combat anxiety
- Aid in chronic pain relief
In fighting cancer, for example, CBD provides an antitumor effect that promotes the death of tumor cells in leukemia and colon cancer. Another study showed that this phytocannabinoid can aid in stopping the spread of cancer cells in the case of cervical cancer.
It also has anti-seizure properties, which was supported by a randomized, placebo-controlled trial. The study revealed that CBD provided an anti-seizure effect on young adults who have Dravet syndrome.
This condition is a type of epilepsy where patients experience seizures induced by fever. Patients who were administered with CBD experienced a decrease in seizure attacks by a median of 38.9%.
It can also potentially be a complementary treatment for Crohn’s disease, an inflammatory bowel disease affecting the gastrointestinal tract. An Israeli study showed those who took it for two months experienced reduced symptoms and a better quality of life.
CBD oil or hemp oil is unique because it is non-psychoactive. This means it does not produce the same effect that is associated with the use of cannabis.
Why Is Investing in CBD Oil Stocks Beneficial?
The biggest question any investor may have before venturing into the marijuana industry is if it’s safe to buy pot stocks. While there’s no way to guarantee how a certain stock share will perform, investors can still use highly effective techniques to analyze the potential market movement.
Aside from medical demands for CBD oils, its growth in the stock market may reach an increase of 700% by 2020. with a compound annual growth rate (CAGR) of 11%. What’s even more impressive is the fact that it could surpass $3 billion in 2021.
Plus, with the number of recreational marijuana users switching to CBD, it may even be possible to reach these figures sooner. Since states are beginning to legalize the use of cannabis, the demand for the plant continues to rise.
Leading hemp research organization the Hemp Business Journal confirmed this when their marketing research team analyzed trends in the marijuana industry.
Additionally, many big companies have reported great success in their investments with medical cannabis. This is a good sign that investing in CBD oil stocks might be worth a try.
What Are Some of the Leading CBD Oils Stocks to Watch Out for in 2019?
After learning about the benefits of investing in CBD oil stocks, it’s time to filter out which CBD companies are worth the time and money. These leading cannabis stocks might be worth considering in an investor’s portfolio.
1. Terra Tech Corp (OTCMKTS:TRTC)
It’s a retail cannabis company that’s “hoping” to dominate the California cannabis market. As of April 2018, their market cap is around $11 million, which makes them one of the biggest companies to watch.
For the third quarter of 2018, stockholders of the company had equity amounting to approximately $93.1 million. This means there was an increase of approximately $16.3 million compared to the equity of the last quarter of 2017, which was only $76.8 million.
2. Kush Bottles (OTCMKTS:KSHB)
Just like Terra Tech Corp, Kush Bottles is also a California-based company. They first started out as a packaging business that soon ventured into the cannabis industry.
A comparison of the stockholders’ equity from August 31, 2017 ($40.9 million) to May 31, 2018 ($72.3 million) showed a huge increase of more than $30 million.
3. 1933 Industries Inc. (TGIF:CNX)
Formerly known as Friday Night Inc., 1933 Industries Inc. carries an array of cannabis wellness products many users purchase for medical purposes.
Data also shows the company’s success:
- Revenue Increase — During a three-month period ending on July 31, 2018, the company experienced a revenue increase of 18%, from $3.3 million CAD to $3.9 million CAD.
- Equity — They also enjoyed an increase in shareholders’ equity for 2018. For July, they had $36.9 million CAD, which rose up to $41.4 CAD in October.
4. GW Pharmaceuticals (NASDAQ:GWPH)
One of the pioneers in the CBD and marijuana industry is GW Pharmaceuticals. They are a well-known British pharmaceutical company that offers nabiximols, the first cannabis plant-derived medicine for multiple sclerosis to gain market approval in any country.
It started in 1998 as a public limited company. Today, it has a public offering on American Depository Shares and Nasdaq Global Market.
Data showed that the company has shareholders’ equity of $674.08 million as of the last quarter of 2018, which ended December 31. This revealed a large increase from the previous quarter of the same year ending September 30, which earned only $415.16 million.
5. Aurora Cannabis Inc. (TSE:ACB)
This company is a licensed Canadian cannabis provider. It has a public offering on the Toronto Stock Exchange as ACB.
As of 2018, it has five sales licenses and eight production facilities in 18 countries across the globe. In 2017, it hit around $13.5 million in revenue in sales.
Its shareholders’ equity for the last quarter of 2018 was $4.292 billion CAD, a decrease from the previous quarter of the same year, which was at $4.4 billion CAD.
With its impressive performance, it’s no wonder plenty of analysts are telling investors to watch out for Aurora Cannabis Inc. this year.
6. Isodoil Inc. (CSE:ISOL)
Globally known as a top provider of industrial hemp and CBD products, Isodiol Inc. continues to raise awareness about the medical benefits of cannabis-derived goods. Their goal as a company isn’t solely to sell their products but also to educate the masses on using medical marijuana.
The company experienced a 5,276% increase in revenues in a one-year period from March 31, 2017 to March 31, 2018, from $355,959 to $19,137,266.
7. Canopy Growth Corp. (TSE:WEED)
Formerly Tweed Marijuana Inc., the company adopted the name Canopy Growth Corporation in 2015. The Tweed brand is quickly gaining traction all over the world.
In fact, The Motley Fool dubbed it one of the best marijuana stocks to watch out for this coming 2019. Its sales and popularity give it an edge over its market competitors.
For their shareholders’ equity, they had $7.2 billion CAD for the last quarter of 2018, which was a significant increase for the previous three quarters of the same year, which were at $1.15 billion CAD, $1.13 billion CAD, $1.6 billion CAD respectively.
8. Golden Leaf Holdings Ltd. (CNSX:GLH)
This Portland-based company is currently one of the largest providers of CBD oil in North America. They pride themselves in being a results-driven brand that focuses on addressing the needs of their customers.
For Q3 2018, the company reported revenues of $5.1. million, a 63% increase from Q3 2017’s $3.1 million.
Note: These are just some of the best CBD oil stocks to invest in according to Profit Confidential. Feel free to explore other CBD companies one might find impressive.
What Are the Opportunities and Challenges in Investing in CBD?
Investors can make a thorough decision when it comes to investing in hemp or CBD stocks if they have more knowledge about the industry’s outlook. For that, it’s time to look into the opportunities and challenges.
1. Food Trends
Hemp CBD will go beyond the dispensaries. Today, chefs are already considering it as one of the top food trends for 2019, according to a survey by the National Restaurant Association.
Restaurateurs are infusing food with the oil not only to enhance the flavor but also to give in to consumer demand.
The cannabis-infused beverage market could grow to more than $1 billion by 2024, which is 15 times higher than its value in 2018. Companies such as Life on Earth and Canopy Growth will lead the pack.
Regulation, though, remains to be a challenge. New York, for example, is already cracking down on the use of such cannabis products, especially in food.
2. Legalization of Cannabis
Marijuana growers may have more reason to rejoice. More states are planning to legalize the sale of such products even for recreational use.
Recently, Illinois passed a bill that allows its medical dispensaries to sell recreational weed. They are also permitting these places to open a second location, possibly doubling their number by next year.
In Mexico, the topic of cannabis use, sale, and manufacturing remains controversial. Medical marijuana or cannabis is legal while the recreational kind is not.
Those who consider investing in CBD and weed in the country, however, can insist on using the case-law. Since 2015, the Supreme Court had already ruled banning growing cannabis for recreation as unconstitutional.
This doesn’t mean products for recreational use are legal, but they can run to the federal court for help.
3. FDA and DEA Perspectives
Unlike marijuana, CBD products are legal under the Farm Bill law, which re-classified hemp from a controlled substance. So is investing in CBD stocks and even ETFs in the United States.
The hemp industry, however, finds a tough battle with the Food and Drug Administration (FDA). It continues to assert its authority over the regulation of CBD or hemp-based products.
According to it, CBD is still a drug ingredient, and thus, products that contain it should still go through the approval process. Note, though, the FDA has already approved a drug with CBD called Epidiolex, which is for seizures.
So far, both parties, the sellers and the FDA, are conducting hearings. Those who sell such products hope the agency relax their regulations.
Meanwhile, the Drug Enforcement Agency (DEA) classified cannabis-derived drugs approved by the FDA and containing 0.1% THC and below as Schedule 5. This means they are legal as long as the consumption is based on a prescription.
Investing in CBD oil stocks is certainly an option worth exploring when looking to add to one’s portfolio. The market is growing due to strong medicinal demands with only a few businesses operating in the industry.
Perhaps the best thing one can do as a potential stock investor for this marijuana investment is to research and invest wisely with their eyes open. Just like any other stock share, always analyze the industry with an open mind to effectively predict potential market trends in the future.