It’s tempting to think the cannabis industry’s growth has been stunted by COVID-19.
Actually, this is not as true as you might think. Believe it or not, one of our top CBD penny stocks still has upside potential of 503% for the year.
You see, today’s cheaper marijuana and CBD stocks are not a realistic picture of the cannabis industry. This is especially true when you talk about CBD stock prices hitting rock bottom.
One CBD penny stock, HEXO Corp. (NYSE: HEXO), said on May 13 (Wednesday) it received a scary note from the New York Stock Exchange. The stock fell below the $1 threshold for the NYSE, meaning it could be delisted from the exchange.
HEXO had gone from $1.64 to $0.43 since the start of the year, a 70% loss.
Normally, if the stock doesn’t rally back to $1 in six months, it’s booted from the exchange. But it’s very likely this stock might turn around in the coming months.
Even the suits running the NYSE know this…
You see, stocks in general have been down this year. And penny stocks like HEXO, because of their low prices, get hit with big percentage losses when the broader market tanks.
The New York Stock Exchange extended its “cure period” for stocks in response to the COVID-19 epidemic. Stocks have until December to return to normal.
So they agree that the broader market has widened the gap between stock prices and reality. What follows is that some stocks should bounce back above their $1 minimum by the end of the year.
Marijuana stocks and CBD stocks clearly fall into this category. Their prices do not speak to the actual value of cannabis and CBD products in the economy.
But the facts on the ground certainly show their potential:
Make no mistake, CBD sales are still poised hit $2 billion by the end of 2020. That would be almost double from 2019.
And by 2024, the CBD industry is projected to rocket to $20 billion.
That’s why we can’t recommend these CBD penny stocks enough right now. Though they’ve been down significantly over the last few months, how current prices compare to their actual value is mind-blowing.
We’ll start with HEXO. Here’s why we think it could easily remain on the exchange after December. In fact, it could gain 145%.
But that’s nothing compared to our top CBD penny stock today, a 503% gainer. So stay tuned…
Top CBD Penny Stocks to Watch, No. 3
HEXO Corp. (NYSE: HEXO) has been one of our favorite CBD penny stocks to watch over the last few years. One reason is that it’s hard to find cannabis stocks that trade on the NYSE to begin with.
Here’s why we think it has more staying power than the market reflects.
HEXO is not an ordinary CBD company. This CBD stock has been building a household name in CBD investing since it started in 2013.
It was one of the early movers in the cannabis, with other names like Aurora Cannabis Inc. (NYSE: ACB), Canopy Growth Corp (NYSE: CGC) and Cronos Group Inc. (NASDAQ: CRON).
Another thing that puts it in league with these big-name cannabis stocks is its diverse interests. Last year, HEXO teamed up with Molson Coors Beverage Co. (NYSE: TAP) to deliver six cannabis beverage brands.
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While this stock is significantly down year to date, as mentioned, its latest quarterly report tells a different story.
For Q2 2020, HEXO reported a 17% increase in net revenue, from $14.5 million to $17 million. It increased adult-use sales by 57% from Q1.
In addition, it’s been obtaining new licenses around Canada for selling cannabis and CBD products. This company continues to grow, and the pandemic isn’t doing much to stop it.
Shares of HEXO are down to $0.44 right now. But we’re confident in Wall Street’s target of $1.08 before the end of the year. That’s 145% for today’s investor.
If you’re looking for even more upside, here’s a CBD penny stock that’s about to soar 255%…
Top CBD Penny Stocks to Watch, No. 2
Like HEXO, CVSciences Inc. (OTCMKTS: CVSI) has been on our radar as one of the best CBD stocks to buy.
This stock has also taken a hit from the broader market this year. But we expect it to catch steam again as CBD continues in stride.
We like this CBD stock because it’s also exposed to a gigantic market. At the start of 2019, the company launched its PlusCBD oil product. By March, it was in 3,300 stores. That was a 48% jump in product availability for the company.
This company has continued to grow its presence in stores. Its oils are even available at Kroger Co. (NYSE: KR) and Harris Teeter today. So even while cities across the country are locked down from a pandemic, CVSciences products can be easily accessed.
As a result of rapid expansion, CVSciences has increased total revenue by 159% from 2017 to now.
You can buy shares of CVSciences for just $0.38 today. Analysts give it an average 12-month target of $1.18. That’s 255% growth for today’s investor.
But you could almost double that with our best CBD penny stock to buy today. Here’s a CBD stock with a chance at 503% growth.
The Best CBD Penny Stock to Buy
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About the Author
Mike is a graduate of the Perdue School of Business at Salisbury University. He has combined his degree in Economics with an interest in emerging technologies by finding where tech and finance overlap. Today, he studies the cybersecurity sector, AI, streaming, and the Cloud.
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