cbdMDcbdMD Inc. (NYSE: YCBD) is a producer and distributor of cannabidiol (CBD) products in the United States. It focuses on the consumer health and wellness market with CBD-derived gummies, topical ointments, tinctures, bath products, and pet products.

In its Q2 preliminary revenue report, the company advised $9.4 million in revenue, a year over year increase of 67%. In anticipation of economic challenges related to Coronavirus, the company is on track to reduce operating expenses by up to $5 million in Q3.

Although the CBD market is likely to see lower sales volume from the Coronavirus pandemic and resulting lockdowns, there’s still a likely upside for this pick in the long term. cbdMD Inc. has invested heavily in marketing. It spends up to $5 million a year growing its brand presence, which has been effective so far. The company currently sells its products through over 5,000 retail partners. At the end of March, the business had $15 million in free cash, which will help it to weather the slow economic conditions today. Its eCommerce sales model is booming. 70% of all sales in Q2 were online.

The low price today and average estimated target price of $5.07 will appeal to bargain investors. This is one of the best penny stocks in the cannabis industry to consider.

Key Data:

  • 1 Year Price Growth: -79.06%
  • YTD Price Growth: -61.54%
  • 3 Month Price Growth: -22.40%

All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.