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. STZ 0.06%Constellation Brandsx
NYSE: STZ215.970.13(0.06%)Vol: 0.00KDay Range: 0 – 052 Week: 104.28 – 220Intra DayStart InvestingMore Details on STZ has invested close to $4 billion in Canopy Growth Corp. CGC. Molson Coors TAP invested $1.8 billion in Hexo HEXO 0.22%. Budweiser 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.
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.
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.