CV Sciences Inc’s (OTCMKTS:CVSI) stock has been on fire since last month, gaining over 22% from its recent low $4.70. The company recently reported impressive growth in retail distribution and revenue for the year ended Dec. 31, 2018.
Hemp-derived cannabidiol (CBD) related stocks have been attracting a lot of attention in the U.S. market over the past couple of years. Market analysts are estimating the industry to be worth an astounding $22 B
In 2018, CV Sciences’ shares had a monster rally with a gain of over 1260% from $0.46 to $5.60. So far in 2019, the stock has been moving within a narrow range, signaling a healthy consolidation and reduced volatility. With increasing excitement for CBD products, CVSI stock may gain its old mojo back soon.
Find out when $CVSI reaches critical levels. Subscribe to OracleDispatch.com Right Now by entering your Email in the box below.
The company’s financial report revealed that its CBD sales grew from $20.7 million to $48.2 million in 2018, marking a 133% surge during that period. CV Sciences’ sales have grown consistently in each quarter over the past two years. The firm’s sales in Q1, 2017 amounted to $3.7 million but its sales in Q4, 2018 which means the sales figure was 3.8 times higher in 2018. Year-over-year sales grew from $7.2 million to $14.2 million which is an impressive 96.1% growth.
Key Earnings Drivers
CV Sciences claims that it achieved an impressive level of growth thanks to a strong marketing campaign that was mainly focused on brand awareness and growing demand for its products. There was particularly impressive demand for the company’s PlusCBD products.
The company also rapidly expanded its retail distribution and its drug development program has also achieved significant progress. It had 1,548 retail outlets in the U.S market in 2017 but that number grew to 2,238 by the end of 2018.
Another reason for the impressive growth is the positive attitude towards the market especially after the legalization of cannabis in North America. For example, 10 states in the USA have already legalized cannabis for recreational use while more than 30 states have approved its medicinal use. The Canadian federal government has also legalized recreational and medicinal use of cannabis.
Sector Outlook Remains Solid
The cannabis industry was worth more than $50 billion annually before it was legalized but cannabis companies are taking advantage of those proceeds now that they can legally operate in the cannabis sector. Analysts estimate that the legal cannabis sector will be worth around $21.6 billion by 2022. CV Sciences hopes to maintain its current momentum so that it can take advantage of the opportunities available in the market