Charlotte's Web Holdings (TSX:CWEB) is showing signs of life in the past month as the hemp stock's risen around 40%. Since the U.S. election and with more states legalizing marijuana in the U.S., cannabis stocks as a whole have been rallying of late. However, with hemp already legal federally in the U.S., the voting and election results this month will have a limited impact on the company's business.

The problem for Charlotte's Web has been around growth – it's struggled to move the needle with its sales being relatively stagnant. When the company released its quarterly results earlier this month, Charlotte's Web's reported sales of $25.2 million U.S., which were up ever so slightly from the $25.1 million U.S. that it reported during the same period last year.

Meanwhile, its net loss of $6.6 million U.S. was more than five times the $1.3-million U.S. loss it incurred a year ago.

Even though more locations are carryings its products – Charlotte's Web now says it's in 22,000 "total unique retail doors" – that hasn't translated into stronger sales numbers. With 36 states now legalizing medical marijuana and 15 states where recreational pot is available, cannabis consumers will have more options to choose from beside just hemp when it comes to pain relief and relaxation.

The company's recent results were an improvement but there's just little reason to be optimistic about Charlotte's Web's future right now as things may get tougher, not easier in the months and years ahead. At a price-to-sales multiple of nearly six, investors are paying a bit of a premium for a stock that's showing minimal growth and are likely better off investing other cannabis stocks instead.

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