Many investors are intrigued by the explosive potential of cannabis stocks. With global cannabis sales set to hit $200 billion per year within the next decade, according to analysts at investment bank Stifel, it's easy to see why.

Yet while investors tend to focus on marijuana stocks, there's another segment of the cannabis market that's expanding at a rapid clip: hemp-based cannabidiol (CBD). Unlike marijuana, which tends to contain high levels of the psychoactive component tetrahydrocannabinol (THC), CBD doesn't get people high. But due to its perceived health benefits, CBD sales in the U.S. alone could approach $24 billion by 2023, according to analysts at Brightfield Group, up from about $620 million in 2018.

Read on to learn about one company that's particularly well-positioned to profit from the surging popularity of CBD.

A person holding a cannabis leaf up to the sun.

Image source: Getty Images.

Charlotte's Web Holdings (CWBHF 3.12%) owns the world's leading hemp-based CBD brand by market share. The company produces a variety of wellness products containing CBD, including oils, capsules, gummies, and topical creams. 

Charlotte's Web's products can be found in more than 8,000 retail locations across the U.S., including some major chains such as CVS Health. Additionally, Charlotte's Web has a fast-growing e-commerce business, which accounted for more than half of its sales in 2018.

Charlotte's Web's sales received a powerful boost from the passage of the U.S. farm bill, which legalized hemp-based products at the federal level. The company is ramping up its hemp production and distribution network to meet the rising demand for CBD. It planted 862 total acres during the 2019 growing season, representing a 187% increase from 2018. It also recently struck a deal with Kroger, which will see the grocery giant roll out Charlotte's Web's CBD products to 1,350 stores in 22 states.

In all, the CBD leader's sales surged 74% to $69.5 million in 2018. Better still, analysts expect the company's revenue growth to accelerate to 83% in 2019 and nearly 150% in 2020. 

Rolled-up dollar bills rising in a stair-step manner.

Charlotte's Web's sales are growing rapidly. Image source: Getty Images.

Even more impressive is that, unlike most cannabis companies, Charlotte's Web is already profitable. It generated net income of $11.8 million in 2018 and $4.5 million through the first two quarters of 2019. Moreover, CFO Rich Mohr said in the company's second-quarter earnings release that revenue should expand at a faster pace than operating expenses in quarters ahead, which should help to drive profits sharply higher. In turn, analysts predict that Charlotte's Web will grow its earnings by 75% in this year and nearly 250% next year.

Best of all, Charlotte's Web Holdings' stock can be had for a bargain price. Shares currently trade for less 27 times analysts' earnings estimates for 2020. That's a steal for a high-quality company with the leading brand and distribution network in the high-growth CBD industry. And the stock is even cheaper if you factor in the more than $40 million in net cash it has on its balance sheet.

All told, if you're looking for a way to profit from the CBD boom, you may want to consider buying some shares of Charlotte's Web Holdings today.