What happened

Shares of Charlotte's Web Holdings (OTC:CWBHF) were jumping 6.6% as of 2:55 p.m. EDT on Monday. The CBD products company didn't announce any news. Instead, the nice gain stemmed from the overall stock market rise sparked by good news for aircraft maker Boeing.

So what

Most stocks tend to rise when the overall stock market goes up. However, it's still important to evaluate the prospects for individual stocks before buying them.

CBD oil bottle next to hemp plant

Image source: Getty Images.

In Charlotte's Web's case, those prospects remain uncertain to some extent. The company's growth won't be as great as investors hope until the U.S. Food and Drug Administration (FDA) finalizes regulations on CBD dietary supplements. It's not known how long it will be before the agency has those regulations ready or what its decision might be.

Meanwhile, Charlotte's Web hasn't given investors much to cheer for so far this year. Its acquisition of Canadian CBD products company Abacus Health didn't win major kudos. Charlotte's Web also recently issued a combination of common stock and warrants, a move that diluted the value of its existing shares.

Now what

Cannabis stocks are likely to remain highly volatile, especially those (like Charlotte's Web) that focus on the U.S. CBD market. The main thing for investors to look forward to with the company now is its annual general and special meeting of shareholders, scheduled for Sept. 3, 2020.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.