Charlotte's Web (TSX:CWEB) has been falling steadily over the past several months and was down 3% on Monday morning. Although the hemp stock is a safer buy than marijuana stocks and it has posted profits in the past, it's unfortunately not been able to avoid suffering a similar fate.
In just six months, the stock has lost nearly 60% of its value and it's also hit a new 52-week low. And with Charlotte's Web now on the brink of hitting oversold territory with a Relative Strength Index of 30, there could be many reasons for investors to consider picking up the stock up today.
Investors only have to look back to October when the stock was over $18 a share as to how the stock could produce significant returns in a short amount of time should it recover. The danger, of course, is that Charlotte's Web continues to decline and investors incur further losses.
While there are concerns that rising competition could chip away at the company's potential growth, it's still a top hemp stock with its products in more than 9,000 retailers across the U.S.
The company has posted a profit in three of the past four quarters amid the growth. It's a much more invesaible business than many marijuana stocks that continue to burn through piles of cash with little hope of posting a profit anytime soon.
Nonetheless, there's still some risk here to buy Charlotte's Web but if the company can return to profitability, there could be significant upside for investors who buy shares of the stock today.
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