New Age Beverages Corporation (NASDAQ: NBEV) , which sells ready-to-drink tea, coffee, kombucha, energy drinks, medical beverages, and other products, saw its stock soar as much as 62.5% on Thursday. As of 11:03 a.m. EDT, the stock was up about 59%.
The stock's gain followed an announcement Wednesday that the company plans to launch a portfolio of beverages infused with cannabidiol ( CBD ) at the National Association of Convenience Stores show Oct. 7 to 10 in Las Vegas.
Image source: Getty Images.
New Age is optimistic about CBD-infused beverages, noting that Brightfield Group, a market researcher for the cannabis industry, estimates the CBD market will top $22 billion in just four years.
In a press release on Wednesday, the company said, "Non-psychotropic CBD is one of the most medicinal compounds in the cannabis plant, reportedly helping with everything from arthritis to epilepsy and cancer, and is seen by many as a natural remedy instead of a pharmaceutical or narcotic drug."
The company also cited the 2018 Farm Bill, which was recently passed by the House and Senate, as an important catalyst. It "would likely legalize CBD for farmers across the country and allow it for sale nationally in all channels," New Age said.
The company says it will be meeting with some major retailers during the Las Vegas event, "taking orders on a first-come, first-serve basis, given anticipated demand."
While New Age's CBD-infused products could prove to be a catalyst for the company, investors should be cautious about pricing in too much speculation.
10 stocks we like better than NEW AGE BEVERAGES COM
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor , has quadrupled the market.*
David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and NEW AGE BEVERAGES COM wasn't one of them! That's right -- they think these 10 stocks are even better buys.
Click here to learn about these picks!
*Stock Advisor returns as of August 6, 2018
Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .