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Penny Stock Basics

5 CBD Stocks to Watch

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Written by Timothy Sykes
Updated 1/24/2023 8 min read

Traders: you know it’s important to be aware of trends … right?

Why? Because trends can create hot sectors in the stock market, and that’s where some stocks can have the potential to see large gains within short time periods.

Last year, pot stocks were one of the hottest trends in the market, with many stocks in the sector going up at a stratospheric rate. It was an exciting time for traders … but nothing lasts forever.

In 2019, pot stocks have lost a little steam. But that doesn’t mean the trend’s completely dead — it’s just evolving and branching off. The sector to watch now is marijuana’s non-psychoactive counterpart, CBD.

In this post, I’ll walk through a brief education on CBD stocks, including what it is, why it’s a sector worth watching, and some suggestions for stocks to watch.

What Exactly Is CBD/CBD Oil?

CBD isn’t pot … but it’s related.

CBD is short for cannabidiol. It’s a product that’s derived from the marijuana plant. But unlike THC (the famous compound in the plant that gets you high), CBD is non-psychoactive.

So CBD won’t make you feel euphoric or give you the munchies, but it potentially offers plenty of great health benefits. It’s promoted as a kind of miracle substance that can help with a broad range of physical and emotional ailments — from stress reduction for humans and pets to a salve for muscle pain to an aid for relieving cancer-related symptoms.

An Evolving Trend

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Before the CBD sector started heating up, pot stocks were red-hot.

That was in 2018, when Canada officially legalized marijuana. The effect on the stock market was staggering.

Stocks for pot-related businesses, including grow operations and other related businesses in Canada, reached impressive new highs as production increased. Many traders saw this as foreshadowing, indicating future legalization in other countries and major economies like the U.S.

But such a spiking trend couldn’t last forever. So while it’s safe to say that pot stocks still have room for growth, the trend’s lost a little heat.

However, early this year, the U.S. Farm Bill passed. And it included a provision to legalize industrial hemp, which just so happens to be the main source of CBD.

Before the bill, CBD was in a legal grey area with limited distribution. But now it’s possible for CBD stocks to flood into a huge variety of markets, from major retailers to pet stores to drug stores and beyond.

And, of course, that sparked interest in this pot-adjacent sector, as traders see CBD as a more current, trending trading opportunity.

Top CBD Stocks to Watch

Tempted by this still-emerging sector? Add some CBD stocks to your watchlist…Your personal watchlist should reflect your own research and stock analysis — of course! — but here are some EXAMPLES of CBD stocks to watch…

Canopy Growth (NASDAQ: CGC)


Here’s a good example of a pot stock that offers opportunities for CBD speculators as well. It’s an Ontario-based company with a market cap of $13.78 billion. At the time of this writing, Canopy trades for about $42, with a 52-week high of $59.25 and a 52-week low of $24.21.

Canopy is best known for its medical cannabis products, including capsules and oils. But it also has a hemp division, where they offer hemp for uses including food, skincare, and fuel.

Looking for a stock with opportunities in both the pot and CBD sectors? Canopy could be a candidate.

Charlotte’s Web Holdings (OTC: CWBHF)


Headquartered in Boulder, Colorado, Charlotte’s Web Holdings has been in the public eye since 2013. That’s when they were in a CNN documentary that featured the story of a little girl named Charlotte who suffered from seizures … until she started taking the company’s CBD oil.

This stock currently trades for about $14, with a 52-week high of $25.25 and a 52-week low of $8.13.

Even before the Farm Bill passed, Charlotte’s Web reported growth. And once the bill did pass, it was in an advantageous position — the company already had an infrastructure set up. Both the established operations and client list can make this a stock to watch in the sector.

CV Sciences (OTC: CVSI)


This company is based Las Vegas and runs on the smaller side, with a market cap of $416.33 million. It’s currently trading at $4.35, with a 52-week high of $9.20 and a 52-week low of $1.39.

This company has two divisions: pharmaceutical and consumer products. With the pharmaceutical division, they’re developing synthetic CBD-based medicine and pursuing FDA approval for drugs.

As a consumer products company, they have various CBD products that they distribute through health food stores, retailers, and healthcare providers.

With these two divisions, there’s a lot of opportunity for growth … but there’s also a strong need for caution. Pharmaceuticals can be notoriously volatile, and the FDA’s approval or lack thereof can change a stock’s trajectory very quickly.

GW Pharmaceuticals (NASDAQ: GWPH)


Based in the UK, this company was founded in 1998 and also operates in the U.S. With a market cap of $5.25 billion, GWPH currently trades around $170, with a 52-week high of $196, and a 52-week low of $90.14.

This company is involved with pharmaceutical products made with CBD. Their star product is called Epidiolex, an FDA-approved oral solution with CBD that helps treat seizures. It’s the first cannabis plant-derived medicine approved by the FDA, which put this company on the map.

With other drugs in the works, a lot of traders are tracking GWPH’s progress and hoping for further growth.

Sundial Growers Inc. (NASDAQ: SNDL)


Sundial Growsers is one of many Canadian marijuana stocks. The stock is popular among Reddit and Robinhood traders recently. It’s been trading high volume and recently had a multi-day breakout over $1.36.

On February 9, this news report was released, highlighting some comments from the CEO.

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In Closing

As a trader, it’s important to keep up with trending sectors and to watch emerging opportunities in the market. Could CBD stocks be the sector to watch in 2019?

With the recent legalization of industrial hemp in the U.S. thanks to the Farm Bill, the CBD stocks sector has plenty of buzz and plenty of room to grow. This could mean that stocks in this sector are poised for future growth.

But always do your research! You should definitely never just buy any stock in a ‘hot’ sector. Be sure to build a strong watchlist and keep it updated. And use a trading journal to track and learn from every single trade you make.

Do you trade in the CBD sector? What stocks are on your watchlist? Drop a comment and share your thoughts on this sector…

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity. Read More

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”