The CBD industry is projected to reach $20 billion by 2024. This could be life-changing for investors who get in on the ground floor and ride the wave of legalization.

Today, we’re going to show you one of our best CBD stocks to buy right now. It’s ready to pop 180%.

The CBD market has exploded in the past several years. And the 2018 Farm Bill made hemp production and sale on a mass scale fully legal across the United States.

Companies are now creating different CBD-infused products that consumers are snapping up to help with health and wellness issues.

Not all marijuana stocks are going to be profitable, as this has become a crowded market. But Money Morning has the tools to uncover the winners.

Our proprietary Money Morning Stock VQScore™ system enables us to choose from thousands of stocks to reveal those that have the best earnings potential. This system assigns a rating for every stock from 1 to 4.9.

Most marijuana stocks don’t score well because they don’t report profits. But today, our pick for one of the best cannabis stocks to buy now is the first in this space to get a perfect 4.9 VQScore.

This is a CBD stock that could soar as much as 180%…

This Is One of the Best CBD Stocks to Own Now

Cronos Group Inc. (NASDAQ: CRON) is the first pure-cannabis play to earn a 4.9 VQScore.

This is a Canadian company that focuses on investing in companies that produce, sell, or license legal marijuana and cannabis products. It was only established in 2013, but it’s already grown to be one of the legal cannabis giants in the business.

In Q2, the company reported better-than-expected sales and outlined some other growth initiatives for the coming year. In terms of production, it produced close to 1,600 kilos of cannabis for the quarter.

However, CRON is most attractive because it has become incredibly undervalued.

You see, the company has struggled in the wake of news related to various vape-related illnesses and deaths. The Centers for Disease Control launched a study into acute lung illnesses and vaping products. Various states, including New York, have urged retailers to stop selling vaping products.

Though this has nothing to do with this stock or its products, Cronos shares are suffering by association.

The good news is that the illnesses have been tied to black market products that consumers are making at home. In fact, a majority are taking place in states where recreational marijuana remains illegal. Of those that have been hospitalized, many admit to purchasing illegal THC vaping products from unlicensed sellers.

So, Cronos is struggling with a public relations issue beyond its control. However, this could present a massive opportunity for an investor looking for one of the top cannabis stocks to own today.

When the panic subsides, Cronos will be ready to soar. And here’s how.

Cronos Is Positioned for Breakout Gains

Cronos is a unique company with regards to how it raises capital much differently than its peers. It has completely refused to do a secondary share offering that would have the effect of diluting shareholder equity.

Instead, it entered a $1.8 billion cash agreement with Altria Group Inc. (NYSE: MO) this March in exchange for a 45% stake in the company.

This infusion of cash is going to permit Cronos to make more strategic acquisitions. It will continue to chip away at the market share held by some of its competitors. This also creates a lucrative partnership with Altria, one of the largest tobacco companies on the planet.

The deal gives Cronos support in its marketing and distribution efforts, particularly when it comes to the North American market.

Cronos isn’t trying to beat competitors by flooding the market with marijuana products. Instead, its goal is to be a leader in the CBD space.

The company has recognized that just being a cannabis producer won’t necessarily bring the profits it wants due to competition and narrow margins. So, it is focusing on creating a network of contracted growers and selling CBD products that generate higher margins.

This strategy will continue to produce more profits for the company.

In the first two quarters of 2019, Cronos reported profits of $323 million and $187 million after it lost $14.6 million in 2018.

In the last quarter, it increased revenue by 120% year over year. Wall Street has predicted that the company will produce $60.1 million in revenue in 2019. This would be a 283% annual growth rate.

This company has earned a perfect 4.9 VQScore rating, which is a first for any pure marijuana play.

CRON is currently trading at $8.90 per share.

Considering its VQScore and breakout potential, we expect that this could reach $25 by the end of next year. That would give today’s investor 180% in potential gains.

Source: Money Morning