4 Long term CBD stocks to invest in
The farm bill of the early 20th century has radically changed the farming and the pharmaceutical industry. When studying the CBD market, it’s important to remember that CBD is much more secure than the recreational cannabis product, THC. While CBD is legal in all states, THC products are riskier.
CBD: Traditional Usage Stocks
CBD is traditionally used as medicine. The FDA has approved it for seizure suppression, and many users find it reduces conditions that include
- chronic pain
- attention challenges
As more users are able to reduce their chronic symptoms at home with CBD dosage, the spread of self-medication with the help of CBD dosing will drive further growth.
The anti-seizure medication Epidiolex is produced by GW Pharmaceuticals. They have created the footprint that other medicinal cannabis producers will need to take to get their products approved for medicinal labeling and dispersal. More interestingly, stock experts note that this is one of the top CBD stocks to buy thanks to their plans to expand their international distribution.
Canopy Growth is leading the way for THC products in regions where recreational marijuana is legal with Tweed. This company is growing rapidly and making strong gains in the non-traditional market, such as older professionals. According to Money Morning, “Impressed by its returns and expansion plans, Bank of America analysts give Canopy Growth a “buy” rating, making it one of the top cannabis stocks to consider.” Even better, their product line allows those interested in THC use but not interested in smoking a wide variety of products and dosage methods. Canopy Growth is a great stock pick as cannabis use expands.
While Canopy Growth is focused on marketing in Canada, Cronos is headed into the United States. Current plans include purchasing a producer of CBD-infused cosmetics, but as political changes get rolling in the US, their market options may expand. Legalization state by state isn’t quick, but it is progressing.
CBD and Wellness Products
Another interesting market change for the CBD industry that’s growing effectively is the wellness industry. Instead of having a condition and trying CBD as a fix, new users are healthy and trying to get healthier. For example, CanChew hemp oil chewing gum offers a full spectrum CBD dosage within 30 minutes of starting to chew the product. This offers an interesting change from a sublingual or instant dose and an edible, which can take hours to digest.
Other wellness CBD products include shampoos that fight scalp irritation, coffee that both wakes you up and soothes your nerves, and protein powder for a smoothie that will power your muscles while it calms your soreness. Finally, investors will want to keep an eye out for non-GMO and organic hemp products, including those made by Diamond CBD.
As cannabis products become more accepted, the decision to dose from home and to self-medicate will grow. As a DIY health booster, CBD is gentle and unlikely to be dangerous in the hands of an adult. Investors will want to keep an eye on the legal changes coming down the path for THC products as well.
Lastly, do your due diligence. Before you invest in any company, you’ll want to evaluate the company’s management, it’s financial prospects and it’s reputation. One good indicator of management’s confidence is if they’re buying or selling shares in the company. The thinking is that if company officers are buying shares, it means they have confidence in the direction and health of the company. A good resource for checking insider sales is Insidertrades.com.