Forget cannabis edibles and cannabis leaf products. The big story right now is cannabidiol, or CBD.

Hemp is now legal in the U.S. And the most lucrative opportunity resulting from this legalization is with hemp-derived CBD products. Cannabis market researcher Brightfield Group projects that the U.S. hemp CBD market will total $22 billion by 2022. A more conservative estimate comes from investment firm Piper Jaffray, which forecasts annual U.S. hemp CBD sales of close to $15 billion by 2023.

For investors ready to jump on the hemp CBD bandwagon, there are quite a few potential stocks to consider. Three top CBD stocks to buy in June are Canopy Growth (NYSE:CGC), Charlotte's Web Holdings (NASDAQOTH:CWBHF), and KushCo Holdings (NASDAQOTH:KSHB)

Cannabis plant with CBD chemical structure

Image source: Getty Images.

1. Canopy Growth

Canopy Growth was the first of the major Canadian marijuana producers to enter the U.S. hemp CBD market. The company is building a large-scale hemp production facility in New York state. Canopy founder and co-CEO Bruce Linton stated in February that the company should have hemp CBD products on the market in several states by the end of the year. Canopy has also filed for U.S. trademarks for potential brand names including CBD Simplified, CB-Tea, Hemp Break, and Hemp Burst.

The company should have access to expertise in building successful commercial brands in the U.S. Constellation Brands owns a 38% stake in Canopy Growth and is partnering with the company to develop and market cannabis-related products. Constellation's Corona and Modelo brands rank at the top of the U.S. premium beer market.

Of course, Canopy Growth has plenty of other opportunities outside of the U.S. hemp CBD market. It claims the highest market share in Canada's adult-use recreational marijuana market and should enjoy a boost later this year when the country opens up the doors for the sale of cannabis-derivative products like beverages and edibles. Canopy is also a leader in international medical cannabis markets.

2. Charlotte's Web 

While Canopy Growth is building out its hemp CBD business in the U.S., Charlotte's Web already boasts the No. 1 hemp CBD brand in the country. The company markets a wide range of CBD products, including oils, capsules, creams, and pet products.

Charlotte's Web's Q1 sales were barely above its sales from the previous quarter. But don't think for a second that the company has really lost momentum. The issue seems to be production capacity. That's only a temporary problem, though, with Charlotte's Web more than doubling the acres of hemp that it's planting this year.

There's no question that more doors are opening for Charlotte's Web's CBD products. The company now ships to more than 6,000 retail locations across the U.S., with over 2,300 of those added this year. This number should continue to increase rapidly as national retailers put Charlotte's Web products on the shelves of more of their stores. 

3. KushCo 

Unlike Charlotte's Web, KushCo doesn't currently market any hemp CBD products. And unlike Canopy Growth, KushCo doesn't have any plans to do so. So why is KushCo a top CBD stock to buy in June? The company's products and services should see much higher demand as the U.S. CBD market takes off.

KushCo is probably best known for its packaging products used by the cannabis industry. Its previous corporate name was Kush Bottles. But the company now makes the lion's share of its revenue from vape hardware and accessories. In the second quarter, vape-related sales generated nearly 69% of KushCo's total revenue and were a major revenue growth driver in the quarter.

However, KushCo's fastest-growing business is marketing solvents and hydrocarbons used in extracting oils and cannabinoids. This business should especially benefit from the expansion of the U.S. hemp CBD industry with rising demand for CBD extraction from hemp plants. 

It's still really early

Canopy Growth, Charlotte's Web, and KushCo appear to be solid picks to profit from the rapidly growing hemp CBD market. However, keep in mind that it's still really early. There are also hurdles that could slow things down.

Although companies like Charlotte's Web are already selling hemp CBD products, the U.S. Food and Drug Administration (FDA) hasn't established any regulations for these products yet. The FDA conducted its first public hearing related to CBD regulations on May 31, 2019. It will take a while for the regulations to be finalized. That means that in the meantime CBD-infused foods and beverages can't be sold legally.

The biggest opportunities in investing, though, can come from getting in on something big early on. It's early for the U.S. CBD market. But this CBD market will almost certainly be huge.