3 High-Performing Stocks in Tech, Retail, and the Cannabis Industry
CV Sciences: Up 988%
And last but certainly not least is CV Sciences, which makes hemp-based cannabidiol (CBD) products. The cannabis industry has exploded over the past couple of years, mainly due to Canada's legalizing the sale of marijuana to adults for recreational use. But CV Sciences has made much of its gains on the back of its CBD and hemp products, and there's likely more to look forward to.
That's because the U.S. Farm Bill that was signed into law at the end of 2018 legalizes the production and interstate transfer of hemp-based products in the United States. CV Sciences' CBD oils are already among the most popular hemp-based products, and the new legislation could go a long way to helping the company boost its product sales even further.
CV Sciences sales are firing on all cylinders, with the company's third-quarter revenue skyrocketing 143% to $13.6 million and GAAP net income of $3.3 million, up from a loss of $590,000 in the year-ago quarter.
The cannabis industry is still in its nascent stage in the U.S., and it's likely that many stocks in this segment will see significant volatility over the coming years. But with the hemp-based product market expected to reach $20 billion by 2020, the company is in a perfect position to benefit as it expands.
One final thought
Of course, just because these companies are all performing well right now and have seen substantial gains over the past 12 months doesn't mean that investors should blindly jump in with these investments. Each company faces stiff competition in its market, and high-flying stocks often experience corrections sooner or later. That doesn't mean Lululemon, Zscaler, and CV Sciences should be avoided, but keep in mind that their past success doesn't guarantee their share prices will continue on their current trajectories.
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