CBDCharlotte’s Web Holdings Inc. (OTC: CWBHF) controls one of the most popular CBD brands in the United States. CBD is a cannabis derivative used in health and wellness products ranging from daily supplements to energy drinks. CBD is legal in states with adult-use and medical-use cannabis legalization and can be marketed in all states when sourced from hemp.

The company recently reported its first-quarter earnings, with a loss of $11.5 million, compared to net income of $2.3 million a year ago. The company cited operational expenses and capital investment for the loss in the quarter. Revenue was strong at $21.5 million, falling right in line with analyst estimates. Most importantly, the company finished the quarter with $53 million in cash and $114.9 million in working capital.

Charlotte’s Web is seeing declining business-to-business sales, but increased retail sales from its eCommerce segment. As it transitions to a consumer-focused business, it will have more potential to serve the growing cannabis-derivative market. As revenue continues to grow, the bottom line is likely to improve.

There’s risk in this pick but its bargain price makes it attractive. The company’s significant financial resources could help it to cement its position as the leading CBD brand in North America.

Key Data:

  • 1 Year Price Growth: -54.70%
  • YTD Price Growth: -29.56%
  • 3 Month Price Growth: 12%

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.