Start the conversation
Marijuana stocks may have been hit hard in 2019, but there is no denying the potential of the cannabis sector in the long term.
In fact, no sector in the market offers the same upside as cannabis. Just look at the growth projections for the industry.
According to Grandview Research, the legal marijuana market is expected to soar from $13.8 billion today to $66.3 billion by 2025. That's 380% growth for the entire industry.
Thirty-two states (and Washington D.C.) have already legalized marijuana in some capacity. Another 10 states could legalize cannabis use in 2020.
CBD, or cannabidiol, is another huge catalyst for the industry. The National Institute for Cannabis Investors (NICI) predicts the CBD market will be worth roughly $20 billion by 2024.
And the highest upside comes from marijuana penny stocks.
Make no mistake; cannabis penny stocks are highly speculative. Many have not turned a profit and are still in their early growth phases. That's why we recommend not devoting more than 2% of your investing capital to these types of investments.
But these early-stage companies also offer the highest profit potential. Most dropped in 2019, as the entire sector sold off. Some trade at rock-bottom prices, despite no change at all in their underlying fundamentals.
And the companies we have for you today are by far the top marijuana penny stocks to watch in 2020...
Marijuana Penny Stocks to Watch Now, No. 7
Exactus Inc. (OTCMTKS: EXDI) is a CBD company that sells its products under the "Exactus" brand name. The company is based in Florida but works with hemp produced in Oregon.
EXDI is about as speculative as it gets for a penny stock. The company has a market cap of just $17 million and an average trading volume below 50,000 shares per day. In its last fiscal year, the firm had revenue of $215,000.
BREAKING: The National Institute for Cannabis Investors has just released a brand-new report on how to uncover the top CBD stocks in 2020. Click here to receive your copy, free of charge.
On the bullish side, the company announced in its last earnings report that it's expecting to harvest 30,000 pounds of flower in its next harvest. That's 50% higher than its initial expectations.
Right now, EXDI shares trade near $0.42.
Marijuana Penny Stocks to Watch Now, No. 6
Cannabis Sativa Inc. (OTCMKTS: CBDS) is best known for its line of topical skincare products that incorporate cannabinoids and THC.
CBDS is another micro-cap company, with a market cap just north of $20 million. Its trading volume is higher than EXDI's at 89,000 shares per day.
One bullish sign - revenue is growing at an impressive rate. Through the first nine months of 2019, CBDS reported revenue of $705,000. That was an increase of 72% from the previous year. Still, the company reports a positive cash flow of $11,000 through the first nine months of the year.
CBDS shares can be purchased near $0.94 right now.
Marijuana Penny Stocks to Watch Now, No. 5
CV Sciences Inc. (OTCMTKS: CVSI) is a California CBD company best known for its "PlusCBD" line of oils.
In March 2019, the company reported its products were sold in roughly 3,300 stores in the United States. The company also announced a partnership with The Vitamin Shoppe in 2019 that would bring its products to an additional 515 locations in 36 different states.
CVSI is also one of the rare marijuana penny stocks that expects to be profitable in 2020. Analysts anticipate earnings of $0.08 per share in 2020, compared to a loss of $0.10 per share in 2019. Revenue is also expected to jump nearly 34% this year to $75 million.
CVSI shares trade for $1.09 at the time of writing.
Marijuana Penny Stocks to Watch Now, No. 4
Elixinol Global Ltd. (OTCMTKS: ELLXF) produces and distributes its CBD products throughout Asia, Europe, and North America. But the company isn't just focused on CBD. It also works with marijuana edibles, supplements, and medical-grade cannabis.
ELLXF is another cannabis penny stock that's actually profitable. In its last fiscal year, gross profits were almost $20 million. Plus, quarterly revenue jumped 17% year over year in its last report.
While the company is based in Australia, it announced major U.S. expansion plans last year. In June, the company expanded its Colorado facility by 23,000 square feet, which reportedly doubled the company's production capacity.
Today, shares trade for just $0.59.
But the top penny stocks on our list offer even bigger upside, including with 450% growth potential...
Marijuana Penny Stocks to Watch Now, No. 3
[mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]
MedMen Enterprises Inc. (OTCMTKS: MMNFF) has 37 stores across the United States where it sells its medical and recreational cannabis products. Like most companies on this list, MMNFF is also involved with CBD products, including edibles, topical creams, extracts, and oils.
MedMen is one of the bigger companies on this list, with a market cap of $130 million. The company is also growing revenue at a rapid clip. In 2020, sales are expected to hit $213 million, a 64% increase from 2019. Growth of nearly 60% is projected in 2021 too.
Despite the revenue, MMNFF is far from profitable. In 2020, analysts expect losses of $0.41 per share.
The National Institute for Cannabis Investors is your go-to source for reliable, up-to-date information about cannabis investing. Click here to automatically subscribe to Cannabis Profits Daily, the Institute's free newsletter, and get industry news and profit opportunities sent right to your inbox.
But investors should take a long-term view with MedMen. In 2019, the company paid $680 million for PharmaCann, which was one of the largest CBD deals on record.
MMNFF stock currently trades for $0.62 per share.
Marijuana Penny Stocks to Watch Now, No. 2
HEXO Corp. (NYSE: HEXO) is by far the biggest company on this list, with a market cap over $421 million. It also has an average trading volume over 6 million shares per day, so there is no concern over the liquidity of this penny stock.
HEXO is a Canadian cannabis company that sells dried flower, cannabis oil, sublingual mists, and other medical and recreational products.
This is another fast-growing business. In its last quarterly report, HEXO announced revenue had jumped 156% year over year.
The company is not profitable (a loss of $62.4 million last quarter), but is aiming to be in 2020. In its last earnings report, company officials announced that operating costs had been cut by 25% in the quarter.
Shares trade for $1.70 today.
Marijuana Penny Stocks to Watch Now, No. 1
CbdMD Inc. (NYSE: YCBD) has become as close to a "household name" as you can get in the cannabis industry. The firm offers a variety of products containing CBD like gummies, bath bombs, topical creams, capsules, tinctures, and even animal treats.
Over the last several years, cbdMD has signed numerous high-profile athletes to promote its CBD products. Professional golfer Bubba Watson, former Olympian Kerri Walsh Jennings, and former NLF star Steve Smith, Sr., are among the dozens of athletes who have partnerships with cbdMD.
The company is not yet profitable, but it is cutting losses substantially. Analysts forecast a loss of $0.43 per share in 2020. That's a significant improvement from the loss of $2.54 in 2019. By 2021, the company should earn $0.33 per share.
Shares currently trade for $1.11 each, but three analysts have an average price target of $6.13 for the stock. That represents an incredible 450% profit potential.
This Cannabis Sector Is on the Fast Track to Record-Breaking Sales
Our experts predict sales in the hemp CBD market will hit $22 BILLION in the next 12 to 36 months... that's a 3,622% increase by 2022.
And investors who get in now could see up to 1,000% returns on their investments.
That's why we've got our eye on one tiny cannabis company that could help you turn a grubstake into once-in-a-lifetime gains.
If you're ready to dive into this sector of the cannabis market, find more details here.