After the legalization of marijuana in the U.S., many companies are actively engaged in the research, development and distribution of cannabis. Cannabidiol (CBD) is the non-psychoactive substance present within cannabis and its products such as CBD oil has had a major impact on the health and wellness industry.
Take a look at these CBD oil stocks that are generating millions of dollars in revenue this year.
Highlighted CBD Oil Stocks:
Overview: CBD Oil Stocks
Since ancient times, cannabis has been used as a form of medicine and as a means to induce euphoria. Indian sages have also mentioned the medicinal use of marijuana in Vedic hymns of antiquity.
However, President Richard Nixon banned the cultivation and sale of marijuana in the U.S. as part of his “war on drugs” campaign in 1970. It wasn’t until the Compassionate Use Act of 1996 was passed that California became the first state to legalize marijuana to treat people with severe or chronic diseases. As of 2020, 33 states in the U.S. have legalized the medical use of marijuana and 11 states have legalized the recreational use of marijuana.
According to a recent report by the New Frontier Data, the legal sale of cannabis could reach $30 billion by 2025. Due to such high potential to earn profits, alcohol companies have started to invest big in CBD oil companies.
Constellation Brands Inc. (NYSE: STZ) has invested close to $4 billion in Canopy Growth Corp. (NYSE: CGC). Molson Coors (NYSE: TAP) invested $1.8 billion in Hexo (TSX: HEXO). Budweiser (NYSE: BUD) entered a joint venture to develop non-alcoholic CBD drinks with Tilray Inc. (NASDAQ: TLRY).
You can still catch up with the market trend and gain some good earnings by investing in CBD oil stocks today.
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Features to Look for in CBD Oil Stock
- Profitable earnings per share: The earnings per share (EPS) of a company can tell you how much money you stand to make on each invested share. You can calculate the EPS of a company by dividing its net income by its total number of outstanding shares.
- Low price-earnings ratio: You can determine if a stock is undervalued or overpriced by its price-earnings (P/E) ratio. A high P/E ratio could indicate that the company stock is overpriced or that it may be expecting to grow in the coming months.
- Growth in yearly revenue: CBD oil companies have invested huge capital in top-notch equipment and warehouse facilities for producing and distributing high-quality marijuana plants. Be sure to go through their net income over the last few years to check if the company stock is growing or if it is underperforming in the market.
CBD Oil Stocks to Watch Out for This Year
Are you looking to diversify your portfolio with CBD oil stocks? Check out these companies that are on a market upswing.
GW Pharmaceuticals Plc (NASDAQ: GWPH)
Since 1998, GW Pharmaceuticals is an established world leader in the development of plant-derived cannabinoid therapeutics. Its primary products are EPIDIOLEX® and Sativex®. GW Pharmaceuticals also has a deep pipeline of other cannabinoid products for the treatment of Rett syndrome, autism and schizophrenia.
The pharmaceutical stock has a market cap of $4 billion and trades over 350,000 shares per day. It has an EPS of $0.98 and a P/E ratio of 132.36. GW Pharmaceuticals generated total revenue of $311 million in 2019.
GW Pharmaceuticals has received notification from the U.S. Drug Enforcement Administration (DEA) confirming that EPIDIOLEX® is no longer subject to the Controlled Substances Act (CSA). DEA’s letter means that all federal controlled-substance restrictions have been removed for EPIDIOLEX®. Once this process is completed in each state, prescriptions for EPIDIOLEX®, like other non-controlled medicines, will be valid for 1 year and can be easily transferred among pharmacies.
Source – NASDAQ
Aphria Inc. (NASDAQ: APHA)
Through an unrelenting commitment to the people, planet and product, Aphria produces high-quality cannabis in natural growing conditions. It owns and operates 2 medical brands including Aphria and Broken Coast, along with 3 adult-use brands such as Solei, Riff and Good Supply.
The CBD oil stock has a market cap of $1.1 billion and has high liquidity with an average daily trade volume of 3.4 million shares. It has an EPS of $0.09 and a P/E ratio of 49.33. Aphria generated total revenue of $174 million in 2019, making it one of the best stocks under $5 to invest in.
An institutional investor has made a strategic investment of CAD 100 million in Aphria. The investor has agreed to purchase 14,044,944 units of the company at a price of CAD $7.12 per share. Aphria also increased its net cannabis revenue by 65% compared to the last quarter of 2020.
Source – NASDAQ
Village Farms International Inc. (NASDAQ: VFF)
As one of the largest and longest-operating greenhouse growers in North America, Village Farms International produces and distributes premium cannabis to national growers in the U.S. and Canada.
The cannabis stock has a market cap of $288 million and trades over 1 million shares per day. It has an EPS of $0.04 and a P/E ratio of 128. Village Farms International generated total revenue of $144 million in 2019, making it one of the best stocks under $10.
Village Farm International recently reported its revenue in Q1 2020 and declared that it has had a profitable business for the 5th consecutive quarter. The cannabis company has also announced that it has expanded its credit facility with its existing lender by $59 million.
Source – NASDAQ
Innovative Industrial Properties Inc. (NYSE: IIPR)
Focused on the acquisition, ownership and management of specialized industrial properties, Innovative Industrial Properties is a real estate investment trust (REIT) for the cultivation of medical marijuana. It owns and operates 57 properties in Arizona, California, Colorado, Florida, Illinois, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New York, North Dakota, Ohio, Pennsylvania and Virginia.
The REIT stock has a market cap of $1.7 billion and trades over 491,000 shares per day. It has an EPS of $2.35 and a P/E ratio of 40.57. Innovative Industrial Properties has an annual dividend yield of 4.18%. It generated total revenue of $44 million in 2019.
In June 2020, Innovative Industrial Properties announced that it has acquired a 108,000 square feet of property in New Castle, Pennsylvania, for a price of $8.9 million. In the same month, the company declared a quarterly cash dividend of $1.06 per share to its shareholders. It is equivalent to an annualized dividend of $4.24 per common share and is the 7th dividend increase since Innovative Industrial Properties completed its initial public offering in December 2016.
Source – NASDAQ
Cronos Group (NASDAQ: CRON)
As an international cannabis producer, Cronos Group distributes its products across 5 continents. It owns and operates brands such as PEACE NATURALS™, a global wellness platform, COVE™ and Spinach™, 2 adult-use brands, Lord Jones™ and PEACE+™ and 2 hemp-derived CBD brands.
The CBD oil stock has a market cap of $2.2 billion and has high liquidity with 6.4 million shares traded per day. It has an EPS of $0.92 and a P/E ratio of 6.97. Cronos generated total revenue of $25 million in 2019, making it one of the best stocks under $20.
Last year, Cronos Group announced that Altria Group Inc (NYSE: MO) is investing CAD $2.4 billion of equity in the company. Altria’s investment represents an approximate 45% ownership interest in Cronos Group. Altria also has a warrant to acquire additional ownership in Cronos, which is exercisable over the next 4 years.
Source – NASDAQ
Biggest CBD Oil Movers of the Day
Stay up to date with the latest price movements of CBD oil stocks on the market today.
You can also review these premarket movers to help you trade stocks before trading sessions open.
Losers
Session: Jun 25, 2020 4:00 pm – Jun 26, 2020 3:59 pm
Don’t Panic, It’s Organic
Cannabis has worked wonders for many verticals such as sports, medicine and recreational art industries. CBD oil companies are constantly developing new strains of marijuana that are safe and accessible to their customers over the counter. Invest in CBD oil companies now and watch your wealth grow organically.
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