Penny Stocks: Could CBD Give Castle Brands the Boost It Needs?

penny stocks

The beverage sector has become a whole lot more interesting in 2019. Penny stocks in this area now offer investors extra potential thanks to the CBD-infused wave that is sweeping across US and Canadian products everywhere. 

At the center of this movement is CBD-infused drinks.

Penny Stocks in Drinks

Investors are now eyeing beverage stocks with a little more fervor knowing that a business could suddenly announce a play into the CBD-drinks sector. All it takes is one notable partnership or acquisition to set a penny stock alight.

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CBD-infused drinks are, after all, one massive piece of an expected $2 billion USD pie by 2022.

ROX Stock

Castle Brands (NYSE:ROX) stock is currently selling for the low price of $0.80 USD. Down 3.52% on the day, the potential here is big.

Castle Brands and its subsidiaries develop, market, import, and sell alcoholic and non-alcoholic beverage products in the United States, Canada, Europe, and Asia. It offers everything from rums, whiskeys, and liqueurs to tequila, vodka, and wine. It also has a line of ginger beer and ready-made cocktails.

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It has not made any announcement to join forces with a cannabis-company or a CBD-hemp farm alá many of its beverage industry peers. But the way this market is moving, the question here is not if but when.

Earnings

In its most recent earnings report, Castle Brands showed revenue of $22.54 million during the latest quarter. It missed its consensus estimate of $26.20 million. But analysts are looking ahead; consensus estimates now have a price target of $2.00 for the ROX penny stock. Barrington Group has given the company a buy rating, while Maxim Group issued a hold rating only a few weeks ago. 

Could CBD Give the Needed Boost?

ROX stock stands to increase big time should Castle Brands enter the CBD-drinks space. It’s simple really; everyone and their grandmother is consuming CBD, so the potential for any drinks company is big. However, at only $0.80 a share right now, the buy-in price offers good value for this specific potential.

Featured Image: DepositPhotos © Alexmit