|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||8.51 - 8.79|
|52 Week Range||8.50 - 25.25|
|Beta (5Y Monthly)||N/A|
|PE Ratio (TTM)||160.19|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||16.00|
The FDA recently sent 15 warning letters to privately held companies concerning violations surrounding the inclusion of CBD in human and animal drugs, as well as being marketed as dietary supplements. They had also been adding CBD to foods consumed by people and animals.It's especially important to Charlotte's Web (CWBHF) because CBD products are primary business. In this article we'll look at the potential impact on the performance of Charlotte's Web and what it may mean for shareholders.How to look at CBDFor some time I've stated that CBD needed to be viewed in a similar way the vitamin and supplement market is by the FDA. The latest communication from the government agency confirms this to be the case.Because of that, I've said that the outlook for CBD sales in the future may be too optimistic. I still think that's the case, although once there is more clarity it should be a benefit to Charlotte's Web as far as more predictability of its performance.The FDA also pointed to the need for more CBD research, citing the designation of GW Pharmaceutical's Epidiolex as an example of proven results and value to end users.While this will slow down the growth trajectory of CBD in the U.S., over time, it has tremendous potential to generate revenue if products are considered as legitimate treatments for targeted symptoms of diseases. It also suggests the products could be covered by health insurance, which would be a huge growth catalyst for revenue.What is most likely to happen is there will be at least two tiers of CBD products. One tier will target the general population like vitamins do today, and the other will receive FDA approval to be used as medication to treat specific diseases.To get the most out of the potential of CBD, Charlotte's Web and other companies will need to engage in research that supports their thesis for treatments.Concerning general usage of CBD, it appears the FDA is taking a harder stance there as well because of the lack of research and understanding in regard to long-term health effects.For that reason, CBD sales are probably going to come under pressure because of the need for the company to take a defensive posture until there is more clarity from the FDA.In the long run, I consider this to be very positive for the company and cannabis industry in general. Charlotte's Web should benefit from having more capital at its disposal to engage in research, while its privately traded competitors struggle to survive.Market ConsolidationDuring this time of industry consolidation, it will be a solid catalyst once market sentiment once again turns positive. Having research to back up CBD benefits and guidelines will do a lot to attract more users across various demographic segments.Also, the more regulated the market the more it will favor the larger competitors.In 2020 I expect to see a lot of smaller competitors either acquired or going out of business. By the end of the year and into early 2021, there should be a lot less competition than there is currently across the cannabis sector, including the CBD segment. This will benefit Charlotte's Web.Analyst Commentary Eight Capital analyst Jenny Wang believes it shouldn't take too long until the FDA issues more clear and friendly guidelines. In her recent note to clients, Wang wrote: "Our FY2021 forecast includes the assumption that the FDA will provide a preliminary and positive direction before 2021 on the regulation of CBD infused dietary supplements. We believe the main considerations impacting the agency's willingness to issue a preliminary update and the timing of such an update are concerns around product safety, counteracted by the massive industry and consumer demand for CBD products and pressure from Congress on providing the industry with clear guidelines on the legality of such products. If and when the FDA were to allow ingestible CBD products, we believe the uptake among F/D/M channels will be significant, and Charlotte's Web is well-positioned to be a leader in the ingestible CBD market."As a result, Wang reiterated a Buy rating on Charlotte's Web stock along with a C$23.00 price target. If everything goes as Wang hopes, the stock could double over the next 12 months. (See Charlotte's Web's price targets and analyst ratings on TipRanks)ConclusionBeing one of the more recognizable brands in the cannabis industry, Charlotte's Web has held up fairly well in this challenging time in the cannabis market.It has taken its hits as have most of its peers, but lower barriers to entry for CBD sellers that has challenged its overall sales recently will probably start to disappear going forward, as the FDA raises the bar for CBD products.Charlotte's Web has enjoyed an increase in distribution from grocery giant Kroger’s, now having a presence in 1,350 in 22 states. It also entered into a deal with Vitamin Shoppe to sell gummy products in 738 stores. The latter isn't likely to have an immediate impact on the performance of the company, but it does get its brand out to another group of consumers.In the last reporting period there was some margin pressure, but that came primarily from the increase in operating expenses associated with a $30 million investment to build a 137,000 sq. ft. production facility. This should prove valuable in the future.I see the current FDA focus on CBD as a positive for the company, as it'll put more pressure on numerous competitors that had been taking some share away from CWEB because of the low barriers to entry. That is about to change, and with its brand strength and CBD leadership it should turn around in the latter part of 2020 and into 2021.How much it turns around will be determined by the guidelines offered up by the FDA.To find other good ideas for cannabis stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
BOULDER, CO , Dec. 3, 2019 /CNW/ - Charlotte's Web Holdings, Inc. ("Charlotte's Web", or the "Company") (TSX:CWEB, OTCQX:CWBHF), the market leader in hemp CBD extract products, announces today that it has closed its previously announced underwritten public offering for aggregate gross proceeds to the Company of C$66,250,000 (the "Offering"). A total of 5,000,000 units of the Company (the "Units"), at a price of C$13.25 per Unit (the "Offering Price") were sold pursuant to the Offering. The Offering was led by Canaccord Genuity Corp., together with a syndicate of underwriters including Cormark Securities Inc., Eight Capital, and PI Financial Corp. (collectively, the "Underwriters").
On December 1st, Charlotte's Web Holdings, Inc. ("Charlotte's Web", or the "Company") (TSX:CWEB, OTCQX:CWBHF), the market leader in hemp-derived CBD products, became aware of a yet-to-be served class-action suit having been filed in the Northern District of California that alleges that the Company's products are mislabeled as dietary supplements. The Company believes that its products are accurately labeled and that the claims are without merit. The Company intends to vigorously defend itself against any such suits.
BOULDER, CO , Dec. 2, 2019 /CNW/ - On December 1st , Charlotte's Web Holdings, Inc. ("Charlotte's Web", or the "Company") (TSX:CWEB, OTCQX:CWBHF), the market leader in hemp-derived CBD products, became aware of a yet-to-be served class-action suit having been filed in the Northern District of California that alleges that the Company's products are mislabeled as dietary supplements. The Company believes that its products are accurately labeled and that the claims are without merit. The Company intends to vigorously defend itself against any such suits.
The U.S. Food and Drug Association has crushed investor hopes for substantial growth in cannabidol (CBD) sales. The government organization doubled down on previous statements surrounding the “safety concerns” of long-term use of CBD along with the lack of clear testing. The FDA currently has CBD products as illegal to market by adding it to a food or labeling it as an dietary supplement.The new FDA warning will follow with official guidelines at a later date. For now, stores selling ingestibles (food products) will likely continue, but the biggest problem facing the sector is that the large FDM retailers have withheld placing these items in stores due to the uncertainty surrounding the FDA guidelines.The CBD market opportunity was forecast by the Brightfield Group at the potential of reaching over $21 billion by just 2022. This upside potential likely won’t occur now due to the strong warnings from the FDA leaving open the door for only reaching the low-end potential of $4.4 billion.The biggest problem for investors is around the FDA warnings that might scare away potential users in the future. Per the FDA based mostly on the limited testing from the FDA-approved drug Epidiolex, CBD has to the potential to harm users via the following: * CBD can cause liver injury. * CBD can affect the metabolism of other drugs, causing serious side effects. * CBD mixed with alcohol or other depressants increases the risk of drowsiness.One of the biggest concerns of the FDA is the lack of testing on CBD regarding the science, safety and quality of the products. For example, testing on lab animals has already found problems with the male offspring of CBD-treated pregnant females. In addition, little is known in the way of the long-term use impact.Due to these concerns from the FDA, we’ve delved into these three U.S. CBD companies that will be impacted by the likely slower than expected rollout of CBD products at major retailers and potential reduced demand from consumers in the short term:Charlotte’s Web Holdings (CWBHF)Charlotte’s Web Holdings is the leader in the domestic CBD sector and a company that had already warned on the impact of the FDA. The company missed Q3 estimates due to a slower rollout from the FDM channel awaiting clearer regulations from the FDA.The other problem is the competitive landscape in the CBD category. Previous research had the amount of CBD brands at only 600 last year with the number sky rocketing to 2,800 now.The market has the worst-case scenario of tons of brands reaching market while the FDA remains restrictive on food products and dietary supplements. The problem for Charlotte’s Web is that only 15% of sales from specialty stores come from topicals (lotions, creams, balm rubs) while the rest comes from the ingestible category.The CBD company is seeing the most growth from the large retailers with distribution deals with Kroger and Vitamin Shoppe contributing to the FDM retail partners expanding by 787 locations in the quarter. Unfortunately, these stores aren’t generating the expected sales causing Charlotte’s Web to cut revenue estimates to only up to $150 million in 2020 or virtually 50% below previous analyst estimates of around $280 million.The CBD company recently completed an equity offering raising $50 million reducing the capital dilution risk to new investors. But overall, the stock is dead money until the FDM channel opens up. (See Charlotte’s Web's price targets and analyst ratings on TipRanks)CV Sciences (CVSI) While Charlotte’s Web has a sizable market cap of nearly $1 billion, the other pure stocks in the CBD sector are much smaller. CV Sciences has a listed market value of $114 million with a fully diluted share count of 115 million shares and the stock is already down 15% on the harsher statements from the FDA.The company actually saw Q3 sales decline from the same period last year due to the uncertain regulatory environment. All while, CV Sciences grew their distribution points by 18% sequentially from Q2 to 5,400 stores. The company is in about half the retail stores of Charlotte’s Web while having similar distribution deals with Kroger and Vitamin Shoppe highlighting the competitive nature of the CBD space already.The company guided 2019 revenues to $56 million placing the stock valuation at slightly above 2x sales estimates. CV Sciences was highly profitable last year based on strong sector gross margins that topped 70%. The recent hiccup in the space suddenly has the company losing money while only having about $14 million in cash on the balance sheet.The biggest concern here for the smaller players is the lack of access to cheap capital as the market turns down. (See CV Sciences' stock-price forecast on TipRanks)cbdMD (YCBD)cbdMD is the smallest company in this group with Q3 revenues of only $8.0 million. Contrary to CV Sciences, cbdMD saw revenues surge 150% from last Q3.The company has a smaller retail footprint with only 3,000 retail doors at the end of Q3, though the numbers are up from only 600 at the end of 2018. cbdMD places a bigger focus on celebrity endorsements that include Bubba Watson from the PGA Tour and Ice Cube’s Big 3 basketball league.The company expects to drive substantial revenue growth over the next two years going from FY19 sales of $25 million to FY20 sales of $85 million to a whopping $300 million in FY21. cbdMD might have a more successful marketing model in the near term with celebrity endorses outweighing FDA warnings, but the revenue estimates appear far too aggressive for the current competitive landscape.The company has solid gross margins of 63%, but the operating expenses are far too large pushing the quarterly operating loss to over $6 million on only $8 million in net sales. The FDA regulatory environment is far too restrictive to invest in a money losing CBD company with unrealistic targets. (Find out how the Street’s average price target for cbdMD breaks down)To find better ideas for cannabis stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights.
Cannabis stocks were slammed anew on Tuesday, after the U.S. Food and Drug Administration issued new guidance on CBD that included a stark warning that it can cause liver injury and other damage to the human body.
Charlotte's Web Holdings Inc. said Monday it is offering 5 million units priced at C$13.25 ($9.97) a pop to raise C$66.3 million through a syndicated deal led by Canaccord Genuity. The Boulder, Colorado-based maker of hemp CBD products said each unit comprises a single common share, plus half a common share purchase warrant. Proceeds of the deal will be used to fund business development and for general corporate purposes. The company's U.S.-listed shares were not active premarket, but have fallen 5% in 2019, while the ETFMG Alternative Harvest ETF has fallen 30% and the S&P 500 has gained 24%.
BOULDER, CO , Nov. 25, 2019 /CNW/ - Charlotte's Web Holdings, Inc. ("Charlotte's Web", or the "Company") (TSX:CWEB, OTCQX:CWBHF), the market leader in hemp CBD extract products, announces today that it has entered into an agreement with Canaccord Genuity Corp. (the "Lead Underwriter"), pursuant to which the Lead Underwriter, together with a syndicate of underwriters (collectively, the "Underwriters") have agreed to purchase, on an underwritten basis, 5,000,000 units of the Company (the "Units"), at a price of C$13.25 per Unit (the "Offering Price"), for aggregate gross proceeds to the Company of C$66,250,000 (the "Offering"). Each Unit will be comprised of one common share of the Company (a "Common Share") and one half of one common share purchase warrant (each full warrant, a "Warrant").
It's looking like cannabis stocks just might have bottomed out, and it has been a long time coming. In this week's episode of "Moneyline," Matt McCall wants investors to know that if they have a long-term perspective, the fundamentals really do matter. That's why he's still confident in pot despite its serious shellacking.Well, why's that? Just this week, the U.S. House of Representative's Judiciary Committee approved a bill that legalizes marijuana at the federal level. Many analysts say it's likely the bill will pass the Democrat-controlled House, but it faces a tougher battle in the Senate. But that doesn't matter. The existence of the bill itself is still a good sign for cannabis investors. McCall is declaring 2020 the year of cannabis -- politicians just need to wake up. He argues such legislation would essentially solve the vaping crisis and clear up issues with black-market marijuana.So how can investors play this week's good news? Start with U.S. cannabis companies. Take a look at Charlotte's Web (OTCMKTS:CWBHF) and Acreage Holdings (OTCMKTS:ACRGF). Those companies, along with a few others, are reporting annualized revenue between $100 million and $200 million. McCall says now is a perfect opportunity to build on existing positions in these names or add new ones, as these stocks have bright futures ahead. And while he's still a fan of the big Canadian names, there are better opportunities to get lit right now.InvestorPlace - Stock Market News, Stock Advice & Trading Tips McCall's PodcastThere's another emerging trend that McCall is big on: biotech stocks. There's one name in particular, Crispr Therapeutics (NASDAQ:CRSP), that's making big waves. CRSP stock is up an amazing 120% year-to-date -- and McCall identified this name earlier in 2019 as part of his Early Stage Investing portfolio for its potential in gene editing. * 7 Companies Using Artificial Intelligence to Outperform the Market This week's news easily justified CRSP's place in that portfolio. On Nov. 19, Crispr announced that patients receiving its CTX001 gene-editing therapy were experiencing significant benefits. This therapy is specifically designed for patients with severe blood disorders, and works by singling out and editing affected cells. One patient living with a form of beta thalassemia had been dependent on blood transfusions, receiving as many as 16 a year. After nine months with CTX001, that patient is now considered transfusion independent.McCall is particularly interested in the treatment's use in patients with sickle cell disease, a blood disorder that causes severe pain. And based on his recent travels to Lisbon, Portugal, healthcare will soon evolve to cure these diseases. In the future, he believes they'll even be cured at the embryonic level.So what else did he learn in Portugal? Tune in to "Moneyline" for more on his travels and the future of healthcare as it relates to artificial intelligence.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Companies Using Artificial Intelligence to Outperform the Market * 7 Earnings Reports to Watch Next Week * 6 Retail Stocks Dropping Hard Ahead of Black Friday The post Consider Adding New Positions in U.S. Cannabis Stocks appeared first on InvestorPlace.
View from the C-Suite: Deanie Elsner, Chief Executive Officer, Charlotte's Web Holdings, Inc., tells her company's story. Filmed on October 16, 2019
The Green Organic Dutchman Holdings Ltd. (TSX: TGOD) (US: TGODF) reported its financial and operational results for the three and nine months ended September 30, 2019. The company experienced a loss of C$20.1 million for the third quarter. The important move TGOD made in the quarter was entering the recreational market with a small pilot in Ontario. […]The post Cannabis Stock News Roundup November 15 appeared first on Market Exclusive.
BOULDER, CO, Nov. 14, 2019 /PRNewswire/ - Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company") (TSX:CWEB, OTCQX:CWBHF), the market leader in hemp CBD extract products, announced the appointment of Jacques Tortoroli to its Board of Directors. Mr. Tortoroli, who most recently served as Chief Administration Officer of Bacardi Limited in Bermuda, brings extensive global experience in finance and operations at both private and public companies. As CAO of Bacardi, the largest privately held spirits company in the world, he was a member of the Global Leadership Team and responsible for global finance, operations, information technology and real estate.
Cannabis stocks fell for a third straight session on Wednesday, as Tilray’s mixed third-quarter earnings failed to light a fire under the battered sector.
Charlotte's Web Holdings, Inc. (TSX: CWEB) (OTC: CWBHF) reported third-quarter revenue of $25.1 million on Wednesday, a 41.8% year-over-year increase. B2C e-commerce sales jumped 38.7%, while B2B retail sales increased 66.4%, Charlotte's Web said. "In an increasingly crowded, noisy and confusing CBD market, brands matter, and Charlotte's Web is the most trusted hemp extract in the world," CEO Deanie Elsner said in a statement.
Q3 revenue increases 42% YoY to US$25.1 million Building out CPG infrastructure ahead of FDA regulatory growth catalyst BOULDER, CO , Nov. 13, 2019 /PRNewswire/ - (TSX:CWEB, OTCQX:CWBHF), Charlotte's Web ...
Last month, Charlotte's Web announced that it would partner with Nielsen to guide US retail companies on the growth of the CBD (cannabidiol) space.
As with most cannabis companies in the current correction, Charlotte’s Web Holdings (CWBHF) has taken a big hit as sentiment for the sector remains negative.It's debatable how long the industry will remain down, but once it bottoms out, it's obvious that the stronger cannabis companies will rebound nicely, and those willing to endure the current volatility in the cannabis sector will be rewarded with solid returns once the bottom is reached.Those companies that have positioned themselves for long-term growth within the specific segment of the cannabis market they compete in, such as Charlotte’s Web Holdings has in the CBD market, they should get the biggest boost from the market rebound that will inevitably come.In this article we'll look at why it's only a matter of time before Charlotte’s Web Holdings enjoys a strong recovery, and what the key catalysts will be.Recent performanceThe key thing going forward with Charlotte’s Web is for investors to manage expectations. What has driven market sentiment negative concerning the cannabis industry has been the market's reaction to what is considered disappointing performances, when in reality it was inevitable that the high-flying cannabis sector went through a season of correction after soaring for a prolonged period of time.After exploding with huge multiples in the early stage of growth, companies are now settling down into a more reasonable growth trajectory, which while still being significant, will be much more subdued than in the past.This is why the last earnings report for Charlotte’s Web resulted in overreaction from the market, even though the company produced decent numbers.While missing on revenue by $2.78 million and earnings per share by $0.03, that was primarily because expectations were still so high, at a time when the company was entering into a more mature state of growth.A sign that its growth was starting to become more realistic was the fact it year-over-year growth was up only 45 percent to $25 million. Normally that would be a solid number, but when measured against some of its peers, it was fairly modest.On the other hand, the company generated a gross margin of 75 percent, which produced $18.8 million in gross profits.Another factor that could boost results is that the company increased the number of retail outlets it sold out of by 1926, finishing the quarter at 7871. The current quarter will give a better view of the impact on the company because it'll include a full quarter of results.Growth catalystsThe major growth catalyst for Charlotte’s Web is the CBD segment, which is projected to soar to $23.7 billion in annual sales by 2023, according to the Brightfield Group.If the company is able to maintain its current market lead, it's going to account for long-term for many years. As competition heats up it may lose some of that share, but taking into account the expected growth in CBD, even a decline in market share would likely result in a significant increase in sales.On the production side of the business, it increased the amount of acreage planted for 2019 by 862 acres, up 187 percent year-over-year.Other catalysts include the release of a new pet line in the last quarter, which at the time had twelve new SKU's. The company also has signed distribution deals with Krogers and CVS Health. It also launched a new line of CBD gummies with three SKU's.Concerning gummies, in the latter part of September 2019 it announced it was now selling its gummies via The Vitamin Shoppe, a specialty retailer of nutritional products. It was already selling extract oil tinctures and liquid capsules. The deal will provide a more comprehensive product line for consumers while increasing sales.The CBD gummies will be sold in 738 The Vitamin Shoppe stores in 45 states.Consensus VerdictOverall, the cannabis company remains a Wall Street darling, as TipRanks analytics showcasing Charlotte’s Web as a Strong Buy. With an average price target of $23.31, analysts are predicting massive upside potential of nearly 80% for the stock. In total, Charlotte’s Web has received 3 'buy' ratings in the last three months. (See Charlotte’s Web price targets and analyst ratings on TipRanks)ConclusionEven though the cannabis sector is in a temporary lull, there is no doubt it's going to rebound once the current correction reaches a floor. Since nothing has changed in relationship to the growth of the cannabis sector, those companies like Charlotte’s Web that are positioned for this ongoing growth, are going to do very well over the long term.There is going to be a lot of competition coming in the CBD segment of the market, so the level of market share Charlotte’s Web is able to retain and/or grow, will determine its performance going forward.As mentioned earlier, the company could realistically lose some market share while still growing revenue and earnings because of the soaring demand for CBD products.I'm not suggesting Charlotte’s Web will lose market share, only that it's possible as an increasing number of competitors enter the market. My point is that even if it loses some share, it probably won't have an impact on the company's growth through 2023.On the other hand, if it's able to maintain and grow share, the upside of its market value is going to vastly exceed expectations.The long-term future of Charlotte’s Web looks very bright, and for patient investors it should generate solid returns for them, based upon the catalysts now in play.To find more good ideas for cannabis stocks trading at fair value or better, visit TipRanks’ Best Stocks to Buy, a newly launched feature that unites all of TipRanks’ equity insights.
NEW YORK, Oct. 9, 2019 /PRNewswire/ -- Nielsen (NYSE:NSLN) and Charlotte's Web Holdings, Inc. (TSX: CWEB, OTCQX: CWBHF), jointly announced an analytic relationship between the world's leading cannabidiol (CBD) brand and the world's leading market intelligence company. Together, Nielsen and Charlotte's Web will help guide the U.S. retail market for consumer packaged goods (CPG) companies through the evolution of the CBD space. Mirroring the changing tide happening across the U.S. retail and CPG industry, this new relationship marks an open and symbiotic relationship that is forming between the emerging CBD industry and the U.S. retail and manufacturing community.
As the cannabis market takes a hit due to fears over lost vaping revenues and the industry in general is still struggling to generate profits, Charlotte’s Web (CWBHF) is poised to benefit from the market turmoil. The market leader in CBD hemp extract products is already highly profitable and doesn’t need aggressive capital spending due to a focus of selling online and via major retail chains. The biggest risk to the Charlotte’s Web business was the ramping competition in the space and the recent market weakness should help curtail the expansion of small brands.Major Retailer ExpansionNo better example exists in the success of a company’s products is for an existing retail customer to expand the product line offered. In such a scenario, The Vitamin Shoppe (VSI) expanded the Charlotte’s Web product line to include selling CBD gummies. The specialty retailer already sold CBD hemp extract oil tinctures and liquid capsules.Vitamin Shoppe has 738 stores across 45 states providing for a substantial expansion by simply flipping a switch on a new product. Charlotte’s Web recently had a similar expansion with Kroger. The grocery chain agreed to expand the number of stores carrying CBD product from the leading CBD brand to 1,350 stores placing their CBD products in over 8,000 retail locations.Wild CBD Opportunity The CBD opportunity in the U.S. is a very is large and set to see explosive growth through 2022, but the size of the market could vary substantially. According to the Brightfield Group, the market could grow from $0.6 billion to $21.9 billion by 2022, if the FDA sets a regulatory environment for ingestibles. The market might only reach $4.4 billion with limited consumer adoption and slow FDA actions.(Source: Charlotte’s Web presentation)Even the worst-case scenario has CBD related sales growing by 633% in the matter of four years. The biggest question for Charlotte’s Web is the market share obtained under both scenarios with the CBD competitive landscape growing. The number of brands in the category grew from 200 in 2017 to nearly 2,000 brands now.Major Canadian cannabis players like Aurora Cannabis (ACB) and Canopy Growth (CGC) both planned to make major splashes in the U.S. CBD space in 2020, but the recent sector weakness could derail some of those plans. In addition, smaller players are unlikely to obtain funding in the current cannabis climate setting up Charlotte’s Web for a stronger future.The stock has felt the hit along with the sector with Charlotte’s Web dipping back down to the $13s. The market valuation of $1.3 billion is very appealing considering the $300 million analyst estimates for 2020 revenue with strong EBITDA margins of up to 30%. Importantly, the company will be able to fund future expansion via cash flows while other sector players will need outside sources in a market where attractive financings could become increasingly limited.Consensus VerdictWall Street’s analysts have been nothing but bullish on Charlotte’s Web over the past 7 months. With a return potential of nearly 67%, the stock's consensus target price stands at $23.08. (See Charlotte’s Web's price targets and analyst ratings on TipRanks)TakeawayThe key investor takeaway is that Charlotte’s Web is correctly positioned to benefit from the surging demand for CBD products in the U.S. The recent stock market weakness had the double benefit of making the stock cheap to buy and potentially reducing the amount of competition in the sector going forward allowing Charlotte’s Web to obtain better brand awareness and market share in a suddenly crowded space.Visit TipRanks’ Trending Stocks page, and find out what companies Wall Street’s top analysts are looking at now.Disclosure: No position.
The third quarter was definitely a bumpy ride for the stock market. One could call it a roller coaster -- primarily because roller coasters usually drop you off at the same spot where you got on. The S&P 500 saw gains of just under 0.5%, the Dow Jones gained 0.75% and the Nasdaq lost a bit more than 1%.Must like the rest of the market, the Best Stocks for 2019 race didn't see a lot of lasting moves. A CBD company continues to move among the top five, a cutting-edge telahealth company holds onto second, and a direct-to-consumer retailer continues its explosive growth. There's one quarter left for big moves, but it's far from anyone's game. * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? Without further ado, let's get into the Best Stocks for 2019, ranked from bottom to top.InvestorPlace - Stock Market News, Stock Advice & Trading Tips 10\. Syrah Resources (SYAAF)Investor: Eric FryYear-to-Date Change Through Q3: -70%Q2 Ranking: 10The story for Syrah Resources (OTCMKTS:SYAAF) went from can it be the best stock for 2019 to can it survive 2019?It looks like it will. 2020 is a bit less likely. Beyond that…well SYAAF really needs that electric vehicle revolution to come soon.The bull thesis for Syrah is that as electric vehicles become more profitable, the companies that supply the materials needed for the cars' batteries will also take off. Graphite is an often overlooked one of these materials, and Syrah owns Balama Mine, the world's highest grade graphite mine. But the prices of these battery components didn't increase as expected.In his update, Eric Fry explained:"Despite the booming market for electric vehicles worldwide, an "echo boom" in the prices of the so-called battery metals has failed to materialize. The prices of copper, cobalt, lithium, and graphite are all languishing near three-year lows. Nickel is the lone standout among the key battery metals, as its price recently hit a new five-year high.In response to the dire conditions in the graphite market, Syrah slashed production by two-thirds last month. And there is no guarantee that this deep production cut will be the last, as the price of graphite has slumped about 15% since the start of the year."Read more about SYAFF stock here. 9\. Weibo (WB)Source: testing / Shutterstock.com Investor: Kyle WoodleyYTD Change: -23%Q2 Ranking: 9Though it's up a modest 1.84% in Q3, Chinese digital company Weibo (NASDAQ:WB) hasn't turned around just yet. It was still down 23% at the end of Q3.But Investorplace's Luke Lango believes that WB has turned around and that turnaround is here to stay:"Weibo stock has been in a secular downtrend since early 2018. But, all major signs (improving fundamentals, favorable optics, and bullish technicals) imply that this downtrend is over."The biggest challenge remaining for WB -- and all Chinese stocks? The trade war. We keep hearing from the Trump Administration that a trade deal is close, but that's about as good as having no information about trade talks at all. * 7 Important IPO Stocks to Watch for the Long Run Will things improve for WB in the coming years? Almost definitely. Will they improve before the end of 2019? Probably not. 8\. Canada Goose (GOOS)Source: rblfmr / Shutterstock.com Investor: Will AshworthYTD Change: 1%Q2 Ranking: 8Canada Goose (NYSE:GOOS) had a much better Q3 than Q2, rising over 10% and bringing it back to flat returns for 2019. The turnaround was based mostly on solid double-beat earnings report that saw revenues grow 59% and earnings grow 37% year-over-year. GOOS's wholesale business also rebounded, retaking the lead over the company's DTC business.Investors were disappointed that it was just a double beat quarter, and not a double-beat-and-raise quarter, however.And Canada Goose isn't out of the woods just yet. As Investorplace's Ashworth stated:"One class-action lawsuit filed in early September suggests that Canada Goose management failed to disclose or made misleading statements about its sourcing of down and fur.While I picked GOOS as my top stock of 2019, I too am concerned about the way it treats the animals used to source its down and fur. As an animal lover, I wouldn't stand for any ill-treatment of animals. The company denies its suppliers' abuse the animals that are used in sourcing materials for its parkas, etc. I've chosen to take them at their word."Whether or not these lawsuits have merits remains to be seen, but it is pretty clear that GOOS will not take the top spot this year.Especially once you take into account that the 10% gains of Q3 have been erased in the first two sessions of Q4.Read more about GOOS stock here. 7\. Viper Energy Partners (VNOM)Source: Shutterstock Investor: Neil GeorgeYTD Change: 10%Q2 Ranking: 8Viper Energy Partners (NASDAQ:VNOM) is an oil and gas play, but it's not a traditional one. Instead of producing either material or refining it, VNOM owns prime parts of the Permian Basin which it leases out to E&P companies. This should isolate VNOM from some of the volatility of the energy sector, and it has."Viper has generated a return through the first three quarters of 2019 of 10.81% -- well outpacing the traditional E&P companies' stocks.It has also been expanding its properties thanks to its affiliation with Diamondback Energy (NASDAQ:FANG) which founded the company through a drop-down of property assets to Viper back in 2014."The problem? The energy sector itself. The Energy Select Sector SPDR (NYSEARCA:XLE) was up 1.2% for the first nine months of 2019. So VNOM's investment thesis held true, but the energy sector is seriously lagging other stocks this year.This doesn't mean Viper Energy isn't a good stock or dividend play, but it does mean 2019 isn't its year. * 7 High Volatility Stocks to Buy as the Market Rebounds Read more about VNOM here. 6\. LyondellBasell (LYB)Source: Via LyondellBasellInvestor: Charles SizemoreYTD Change: 10%Q2 Ranking: 7LyondellBasell (NYSE:LYB) is a plastics, chemicals and refining company -- and that wasn't the right sector to be in this year. Furthermore, with just a 9x trailing P/E and 7x forward P/E, LYB is deep in value stock territory."With cheap valuations like these, you might assume that Lyondell had hit a rough patch. But nothing could be further from the truth. Gross margins and operating margins have trended higher for years, and revenues have been stable.The lack of investor interest in Lyondell has far less to do with company performance and far more to do with the neighborhood it's in. In a world of social media hype, a plastics, chemicals and refining company just isn't all that interesting. But as investors rotate out of the story stocks of the last decade in search of new opportunities, they're likely to give reliable dividend payers like Lyondell a closer look."LYB didn't win the Best Stocks for 2019 contest, but the stock is still worth a look - especially if you think value stocks will come back in 2020.Read more about LYB here. 5\. Amazon (AMZN)Source: Jonathan Weiss / Shutterstock.com Investor: Readers' ChoiceYTD Change: 16%Q2 Ranking: 5Readers' Choice stock Amazon (NASDAQ:AMZN) didn't have a great quarter. Though it held onto the 5th place slot, it's actually down 10% in Q3. Right now, AMZN stock isn't even beating the S&P 500 for 2019. Maybe it's time to pick a different stock for 2020?What this loss seems to come down to is that investors are growing weary of Amazon's growth without thought for profits attitude. The strategy got AMZN to $1 trillion in market cap, so it did pay off, but it looks like investors are starting to expect a more mature company."This was highlighted earlier in Q3 when AMZN missed Q2 earnings per share expectations and plummeted nearly 12% in a few sessions. That's over $100 billion in market cap erased over a miss of 35 cents per share.This plunge was despite a revenue beat, so the message investors are sending here is clear: They expect more in profits than Amazon has been delivering."Of course, the long-term narrative for Amazon is still strong, but AMZN winning the Best Stocks for 2019 at this point depends more on the leaders taking a nose dive than several hundred billion in market cap flowing into AMZN in the next three months. * 5 Stocks Under $10 Worth the Risk Read more about AMZN here. 4\. Adobe (ADBE)Source: r.classen / Shutterstock.com Investors: John Jagerson and Wade HansenYTD Change: 22%Q2 Ranking: 4Despite holding onto 4th place, Adobe (NASDAQ:ADBE) didn't have the best Q3. It fell 8%. But one bad quarter isn't much in the scheme of things for a stock like ADBE. Adobe produces industry leading products and was one of the first companies to capitalize on the new software subscription revenue model.Can ADBE rebound from its Q3 losses and take the top spot in the Best Stocks for 2019 contest? That remains to be seen.Read more about ADBE here. 3\. Charlotte's Web Holdings (CWBHF)Source: Shutterstock Investor: Matt McCallYTD Change: 25%Q2 Ranking: 3For a third place stock, Charlotte's Web (OTCMKTS:CWBHF) has a better shot than you might think of winning the Best Stocks for 2019. One reason is that Charlotte's Web is in the very volatile pot sector. Who could forget the day Tilray (NASDAQ:TLRY) ran up to $300 from $230 and back to $150 in a single trading session? I'm not saying Charlotte's Web - or the 2019 pot sector - is nearly that volatile, but a run of 40% over three months is certainly possible.Another reason a win is still possible is Charlotte's Web's size. Other than SYAAF, CWBHF is the only one of our stocks sporting a sub-$1 billion market cap, that means less investor money is needed to move the needle. For today's $675 million market cap to hit 60% gains for the year, only about $200 million would needed to be invested in the company.We only check in with the Best Stocks once a quarter, but CWBHF has topped 100% gains twice in 2019, the last time being Aug. 5. It's as if we're just getting snapshots of a race, and that works just fine for a lot of stocks, but most stocks are much steadier than Charlotte's Web. Will the next snapshot happen on a day when Charlotte's Web has once again sprinted into first place before being overtaken again by a steadier runner? We'll have to see.Matt McCall pointed out that Charlotte's Web is well-positioned for this growth even among pot stocks:"Charlotte's Web remains one of a handful of cannabis companies that is able to turn a profit. That's huge. CWBHF is expected to earn $0.19 per share this year, followed by $0.69 in 2020 and up to $1.07 by 2021.…The stock is undervalued based on both earnings and revenue forecasts. Using the 2021 numbers, which is less than two years from now, CWBHF stock trades with P/E ratio of 14.3 and a price-to-sales of 1.67.Stocks that are in high-growth sectors such as cannabis and CBD should (and typically do) trade at valuations higher than the overall market. A P/E ratio between 40 and 50 for Charlotte's Web would be in-line with other high-growth stocks."In my opinion, Charlotte's Web has a higher chance to take the top spot than even the next stock on the list. * 7 Stocks the Insiders Are Buying on Sale Read more about CWBHF here. 2\. Teladoc (TDOC)Source: Shutterstock Investor: Jason MoserYTD Change: 37%Q2 Ranking: 2Teledoc (NYSE:TDOC) has had its ups and downs in 2019 to be sure, but the moves haven't been nearly as wild as the ones in Charlotte's Web stock. As a result, TDOC is up a very respectable 37% as of the end of Q3.Teladoc is the undisputed leader in the telehealth space. It's a company that makes it possible to seek medical attention, virtually without having to travel to a doctor's appointment. As more services and industries become digital in some way and the U.S. cries out for healthcare reform, a company at the intersection of these two things stands to profit big.And its growth is going well. As The Motley Fool's Jason Moser pointed out:"TDOC stock's second-quarter results showed us the business remains on track. There were a couple of leadership additions with Mala Murthy coming on as CFO and David Sides as COO… TDOC's revenue for the quarter came in just over $130 million -representing 24% organic growth."Moser also pointed out upcoming catalysts for TDOC:"Medicare Advantage will be a nice catalyst in the coming years as it will open them up to an opportunity as large as 20 million additional members.It also sounds like the CVS (NYSE:CVS) partnership continues to develop nicely. There was plenty of positive language on the earnings call regarding the relationship building with CVS and Aetna. Minute Clinics have expanded to 8 additional states, and the Aetna acquisition has stoked the HealthHub concept …In fact CVS plans to have 1,500 HealthHUB locations operating by the end of 2021."Will any of these catalysts hit in time for the end of 2019? That remains to be seen.Read more about TDOC here. 1\. Lululemon (LULU)Source: Richard Frazier / Shutterstock.com Investor: Louis NavellierYTD Change: 58%Q2 Ranking: 1And finally, Lululemon (NASDAQ:LULU) holds onto the top spot for the second consecutive quarter, and no one else really came close. LULU closed out Q3 a whopping 21 percentage points ahead of TDOC.Louis Navellier of Growth Investor attributes Lululemon's success to two things: being an entirely direct-to-consumer company and smart management.The first allows LULU to control costs and quality and keep close track of what customers want. LULU keeps production costs down and can release new products strategically in a way that won't leave them sitting on shelves. This lets LULU "charge a premium for quality products that are in limited supply.""The second force that keeps LULU stock chugging along is the company's smart management. The key to success here is that its management has known how to time Lululemon's growth.Lululemon hung back as its popularity grew, choosing to focus on building out its yoga business into the women's athleisure force it is today. Thanks to this, it was able to grow its reputation in a much more profitable way than simply flooding the market with stores and products. That cachet with its target market (and, thus, staying power) is a big reason I named it as my pick for the InvestorPlace Best Stocks of 2019 contest.And now, as it enters the men's space, analysts are drooling over the potential."So will LULU keep it's lead through the end of Q4 and win the whole thing? It seems likely, but nothing in the market is certain so I'm not betting against the other front runners either.Read more about LULU here.As of this writing, Regina Borsellino held no positions in the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Best ETFs for 2019: The Race Is a Little More Gnarly Now * 7 Next-Generation Healthcare Stocks to Buy * Are These 10 High-Yielding S&P Dividend Stocks Traps or Treasures? The post Best Stocks for 2019: Q3 Was a Roller Coaster appeared first on InvestorPlace.
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