While marijuana legalization in the United States has taken off over the past decade, there is still plenty of room for growth – especially when it comes to the best CBD stocks to buy now.
That's why we're giving you our list of the three top CBD stocks to buy, with one offering a potential upside of as much as 567%.
Since legalization began, the U.S. legal cannabis market has grown into a $10.4 billion industry. In a little under one year, Business Journal reports that cannabidiol (CBD) has soared to account for $591 million of that $10.4 billion. Within the next three years, forecasts call for CBD to grow an insane 3,623% to $22 billion, according to Grand View Research.
You see, CBD's popularity skyrocketed in 2019 thanks to the Decemeber 2018 Farm Bill. This made hemp cultivation and sale legal. And since CBD is derived most easily from hemp, CBD became legalized as well.
As you can see, there is still plenty of growth to come. And it's exactly why we're all in on some of the top CBD stocks. Each of our three best cannabis stocks to buy now are focusing on CBD and its lucrative market.
Top CBD Stocks to Buy Now, No. 3: Elixinol Global
Elixinol Global Ltd. (OTCMKTS: ELLXF) is a global hemp-based healthcare company based in Australia. It creates and distributes hemp skincare, hemp-derived CBD products, and branded raw materials across the world.
Elixinol is a top CBD stock to buy today for three reasons.
First, is its global reach. The company has established a successful food-based business throughout Australia over the past decade, with marijuana and hemp-based products.
Second, it's expanding its operations. Last year, Elixinol announced that it planned to increase the capacity of its Colorado facility by 12,000 square feet. From this facility alone, the company will be able to make 24,000 bottles of CBD each day.
This year, investors gave Elixinol $50 million, which it is using to again expand its Colorado facility by another 23,000 square feet. This is going to effectively double the company's production capacity.
Third, it's profitable. Sales for Elixinol have soared 121% over the past two years to $26 million. Over the same period, it achieved $500,000 in net income.
Not all penny stocks are profitable – especially ones in the cannabis industry. So, this is another reason we're pushing Elixinol to the top of our list of CBD stocks to watch.
The company's shares are currently trading at $0.89. Analysts have given this an average price target of $2.35 per share over the next 12 months.
But our next best CBD stock to buy today could perform even better.
Top CBD Stocks to Buy Now, No. 2: CV Sciences
CV Sciences Inc. (OTCMKTS: CVSI) is a San Diego-based legal cannabis company.
The company focuses on drug development as well as consumer products made from plant-based CBD.
Its consumer products division has also gone all-in on CBD, with a focus on the development of CBD oils and other products to tackle the growing market.
Early in 2019, CV Sciences introduced its PlusCBD Oil. Within a few short months, that product was available in over 3,300 stores across the United States, boosting its availability by almost 50%.
Even before the Farm Bill passed in 2018, the company's revenue and profits shot up to $48 million and $10 million, respectively.
The growth of CV Sciences so far is as impressive as its potential for more. Now, its revenue has grown to $58.6 million for the last 12 months.
And we expect that growth to continue.
In September 2019, it announced a new line of body care hemp CBD products. CV Sciences has also created a series of lucrative partnerships with retailers throughout the year. These include Kroger, Harris Teeter, and The Vitamin Shoppe – all of which have agreed to put the company's products on their shelves and in front of millions of consumers.
This stock is currently trading at $1.53 per share, and it has a high price target of $4.20. Today's investor has a potential upside of 174.5% over the next 12 months.
But our top CBD stock to buy today could shoot up as much as 567%…