In 2019, we saw a lot of pot stocks reach bare-bones values. With 2020 in full swing, things do seem to be slightly brighter for the cannabis industry. The industry is nowhere near settled from its high volatility, but there are a few standout marijuana stocks that are worth watching. These companies are on a very short list of the only cannabis stocks to be producing profits consistently. On that list are companies that work heavily in the cannabis market, and some that don’t have as great exposure to the industry. The majority of the losses sustained in the past year have been recorded with the top five pot stocks by market cap. Lower on the market cap spectrum however, there are some companies that have managed to be quite profitable.
These companies have often not received the attention they deserve simply due to their size. But like any good pot stock investor, we look for value where value can be found. The two companies mentioned below work in very different areas of the industry. On the one hand, we have a pot stock by proxy, which is mainly a producer of tobacco products. On the other hand, we have a cannabis company that is involved heavily in CBD. These two companies are quite diverse, but they just go to show that the cannabis industry spans many different sub-sectors, all with varying profitability.
Big Tobacco Becomes Big Cannabis
Group Inc. (MO Stock Report) is one of the largest tobacco companies in the world. You’re probably thinking, why is big tobacco on a list about pot stocks? Well, Altria famously made a very sizable $1.8 billion investment into Cronos Group (NASDAQ:CRON) resulting in a 45% stake in the company. With this, it planned to dive headfirst into the marijuana industry. But, the majority of Altria’s profits are still coming from tobacco. After hitting a low of around $40 in the end of February, the company has been able to bounce back by around 10%.
With a market cap of around $80 billion, it seems as though the company is not going anywhere anytime soon. But, with cigarette use on the decline, the prospect of cannabis filled future interests Altria greatly. The CEO of the company, Howard Willard stated that he believes cannabis has a “tremendous potential for growth.” Because of this, Altria continues to be an interesting non-pot pot stock to watch for the next few years.
This Pot Stock Is Taking Over The CBD Niche
Charlotte’s Web Holdings (CWBHF Stock Report) is widely considered to be the largest CBD company in the world. The company produces a long line of products that are created to meet the varying needs of the industry. For those who don’t know, CBD is one of the components of cannabis that does not get the user high. Rather, it can be utilized for a variety of medicinal purposes. This means that Charlotte’s Web is one step removed from the cannabis industry. Because of this, it has been able to avoid the bulk of the volatility that the main market has seen recently. 
One thing that could be of concern to investors is that the company reported fewer earnings than the year prior during its first quarter. But, this can be attributed greatly to the massive expansion of its infrastructure that it has undergone recently. It seems like Charlotte’s Web is gearing up for a future based in CBD. With CBD legal in the U.S. since 2018, it looks like the company could be on the right track.
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