Investing in CBD Stocks

Sometimes, the best time to invest in a relatively new market is after the initial euphoria has evaporated. That could very well be the case with investing in CBD, an abbreviation for a chemical found in the cannabis plant called cannabidiol. CBD stocks are shares of publicly traded companies that are involved in the processing and distribution of CBD or provide tools and services to other companies in the CBD industry.

The U.S. legalized hemp-derived CBD at the federal level with the 2018 farm bill. The mere anticipation of the passage of this legislation stoked investors' interest in the stocks of companies involved in the CBD industry.

Although federal legalization served as a key milestone, the U.S. Food and Drug Administration (FDA) chose to exclude CBD from food supplements. As a result, the CBD opportunity in the U.S. hasn't delivered on investors' lofty ambitions.

The CBD industry faces another big challenge in 2026. A continuing resolution passed by the U.S. Congress in November 2025 made significant changes to federal hemp product regulations.

Although the CBD market isn't as attractive as it once was due to the uncertainties created by these changes, investors may still want to consider four CBD stocks:

2. Green Thumb Industries

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Trulieve experienced a setback when Florida voters rejected a constitutional amendment in November 2024 that would have legalized recreational marijuana. The amendment required a 60% approval to pass, but it only received around 56%.

However, supporters plan to continue pushing for the legalization of recreational marijuana. Trulieve could still have a major growth opportunity in its home state in the future.