According to the National Institute for Cannabis Investors, 2019 is turning into the best year yet for cannabidiol (CBD) companies, and today we're bringing you the three best CBD stocks to buy now.
The market for CBD is already valued at $591 million since being legalized in the United States in December 2018. This figure is set to soar to $22 billion by 2022, says the Brightfield Group.
That represents a mind-blowing growth rate of 3,623% in just under three years.
This type of explosive growth is precisely why you need to invest in CBD stocks, and it's just one more reason that Money Morning continues to be bullish on the cannabis sector.
Before we get to the top CBD stocks to buy now, here is why this industry is climbing through the roof.
Why This Year Has Been a Catalyst for CBD Stocks
The No. 1 reason that CBD stocks are soaring in 2019 is that the 2018 Farm Bill was signed into law last December. This effectively legalized growing and selling industrial hemp for CBD and other purposes.
This is a big deal! CBD can be most easily produced from hemp. Since CBD was legalized through this new law, it has fast become a mainstream product across the United States.
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According to Healthline, CBD oil helps relieve pain by interacting with the body's pain receptors.
This has produced a major catalyst for growth among CBD companies that are now filling retail and online stores with CBD edibles, oils, lotions, beverages, and more. In some restaurants, it's even served in the salad dressing.
This is why we're bringing you the three top CBD stocks to buy right now.
Best CBD Stocks to Buy Now, No. 3: Cronos Group Inc.
Cronos Group Inc. (NASDAQ: CRON) is our first CBD stock pick.
It is a cannabis company based in Toronto that was founded in 2013 and continues to be an up-and-comer in the marijuana space.
Last September, Cronos expanded its reach to the CBD sector. This was due, in part, to its collaboration with Ginkgo Bioworks, which is allowing the company to produce and sell unique products made from CBD.
The deal between Cronos and Gingko was worth $100 million and pushed its CBD production in a different direction. In lieu of cultivation, the company produces the oil by inserting cannabinoid DNA sequences into strains of yeast and allowing them to ferment. This resulted in high-quality, pure, lab-produced CBD oil. One of the benefits of this is that it can mass-produce these products through reliable processes.
This is just one of the reasons that Cronos is a top CBD stock to own.
This past March, Altria Group Inc. (NYSE: MO), one of the world's biggest tobacco companies, invested $1.8 billion in cash in Cronos.
This influx of capital has provided Cronos with the ability to acquire other companies and boost its production across the board.
Even if you haven't bought Cronos stock yet, there's still time to profit from this cannabis giant.
The company produced 120% growth year over year in Q1 2019, and it currently has a huge $5.5 billion market cap. There is still a major CBD rollout on the horizon for Canada, and this company will play a big role in this market.
Cronos also plans to enter the U.S. market by the end of 2019.
Shares of CRON currently trade at $15, and the price target for this stock is $19 within a year. This represents a 26% upside for today's investor.
Best CBD Stocks to Buy Now, No. 2: Canopy Growth Corp.
Canopy Growth Corp. (NYSE: CGC) is our next top CBD stock to buy.
This is another Canadian cannabis company that was founded in 2013, but this one is based in Ontario. While it is one of the world's largest cannabis firms, it's still not too late to get in on the profits from CBD mania.
Just look at what happened with Amazon.com Inc. (NASDAQ: AMZN) and Microsoft Corp. (NASDAQ: MSFT). Amazon shares jumped 3,240% from 1997 to 2000, and Microsoft investors gained 700% between 2009 and today.
If a company is innovating and staying out in front of a growth industry, it's not too late, which is the case with Canopy.
Some of this company's high-profile partners include Seth Rogen, Snoop Dogg, and even Martha Stewart.
This past April, Canopy inked a buyout deal with Acreage Holdings Inc. (OTCMKTS: ACRG), the largest cannabis operator in the United States.
This gave Canopy dominance in nine U.S. states and perfectly positions it to take advantage of the exploding CBD market.
The company has a $14 billion market cap, and this could explode even higher with full U.S. legalization of marijuana.
The shares of this CBD stock currently trade at $40, but it is predicted to reach as high as $78 in the next year.
This would return 95% to today's investor…