Down 24% in 2019, Is Charlotte's Web Now a Buy?
There's little doubt that cannabis could be one of the fastest growing industries over the next decade. After more than tripling global sales between 2014 and 2018, Wall Street has called for worldwide weed sales to grow fivefold to 18-fold by 2030.
But believe it or not, there's an even faster-growing niche surrounding the marijuana industry and pot stocks. Sales of cannabidiol (CBD), the nonpsychoactive cannabinoid found in cannabis and hemp that's best known for its perceived medical benefits, are expected to grow by more than 100% per year through 2023, according to the Brightfield Group, a market research firm for the CBD and cannabis industries. That's put market share leader Charlotte's Web (OTC: CWBHF) at the center of this high-growth trend.
Yet, this popular CBD stock has shed 24% of its value in 2019, and lost nearly two-thirds of its share price since hitting its yearly highs in early April. Does this decline represent a buying opportunity for investors, or is it a classic value trap? Let's weigh both arguments, then circle back and answer the question at hand.
Source Fool.com
