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CBD Stock Market Analysis: Why It Might Be Time to Buy

CBD (short for cannabidiol) is one of over a hundred components in marijuana that are collectively referred to as “cannabinoids.”  CBD has received attention lately because new research has shown that it may potentially have medical benefits and it is not psychoactive (despite some misconceptions).

For investors, this means that CBD stock is a contender to keep an eye on. New estimates predict that the CBD market will reach $2.1 billion by 2020 (it was at $205 million in 2017). Here are a few reasons you may want to consider investing in CBD stock:


1. New Research Shows Promise

Sufferers of sports injuries and chronic back pain have used CBD to help alleviate pain for quite some time, but new research shows that the agent may also help with symptoms related to cancer, diabetes, and conditions that lead to inflammatory or neuropathic pain. In light of the current opioid crisis, researchers have become curious about whether CBD could help alleviate symptoms traditionally treated with opioids.  

Research has already shown that CBD can be an effective treatment for seizures related to epilepsy. There is even an FDA-approved CBD prescription drug that is capable of treating seizures associated with two particular syndromes that affect children with epilepsy (Dravet and Lennox-Gastaut syndromes). that cannot be treated via antiseizure drugs prescribed to adults.

Researchers will likely continue to find beneficial effects of CBD in healthcare, making investing in their stock now worth it.


2. CDB is Gaining Legitimacy and Legality

While illegal on a federal level, CBD legalization on the state level is trending. Some companies already have CBD medications in the works. Epidiolex (developed and manufactured by GW Pharmaceuticals) was approved by the FDA in June 2018 as the first prescription pharmaceutical formulation of CBD, and other companies are following suit. Zynerba Pharmaceuticals Inc. is committed to “developing next-generation transdermally-delivered cannabinoid therapeutics to help address significant unmet medical needs and improve the lives of patients with rare and near-rare neuropsychiatric conditions such as Fragile X syndrome (FXS), Autism Spectrum Disorder (ASD), 22q, and a heterogeneous group of rare and ultra-rare epilepsies known as developmental and epileptic encephalopathies (DEE).”  

Another stock boost could come from the 2018 Farm Bill, which included a provision that removes hemp from the Controlled Substances Act. This, in turn, has led to the rise of wholesale CBD and high-quality CBD manufacturing facilities, which will encourage more research and production.



3. Other CBD Products Could Be Released Soon

Apart from medications, news from Canada suggests that there could be an emerging market for CBD in recreational products.  

Recently, a number of big names US beverage companies–including Molson Coors Brewing Co and Heineken–have shown interest in the Canada marijuana industry, either via joint ventures with domestic companies or via investments. The eventual product would likely be CBD-infused beverages.

Other CBD products already have a market in the US, including essential oils, shampoos, soaps, and makeup products.


A Rise in CBD Stock Value

The demand for these products is likely to drive an uptick in high-quality CBD manufacturers and private label CBD products. And with new studies and more research, it’s likely to become a hot commodity in the near future. It’s best to start investing now by getting CBD stock in order for your investment to make a powerful impact now and in the future.

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