Marijuana stocks may have been hit hard in 2019, but there is no denying the potential of the cannabis sector in the long term.

In fact, no sector in the market offers the same upside as cannabis. Just look at the growth projections for the industry.

According to Grandview Research, the legal marijuana market is expected to soar from $13.8 billion today to $66.3 billion by 2025. That's 380% growth for the entire industry.

Thirty-two states (and Washington D.C.) have already legalized marijuana in some capacity. Another 10 states could legalize cannabis use in 2020.

CBD, or cannabidiol, is another huge catalyst for the industry. The National Institute for Cannabis Investors (NICI) predicts the CBD market will be worth roughly $20 billion by 2024.

And the highest upside comes from marijuana penny stocks.

Make no mistake; cannabis penny stocks are highly speculative. Many have not turned a profit and are still in their early growth phases. That's why we recommend not devoting more than 2% of your investing capital to these types of investments.

But these early-stage companies also offer the highest profit potential. Most dropped in 2019, as the entire sector sold off. Some trade at rock-bottom prices, despite no change at all in their underlying fundamentals.

And the companies we have for you today are by far the top marijuana penny stocks to watch in 2020…

Marijuana Penny Stocks to Watch Now, No. 7

Exactus Inc. (OTCMTKS: EXDI) is a CBD company that sells its products under the "Exactus" brand name. The company is based in Florida but works with hemp produced in Oregon.

EXDI is about as speculative as it gets for a penny stock. The company has a market cap of just $17 million and an average trading volume below 50,000 shares per day. In its last fiscal year, the firm had revenue of $215,000.

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On the bullish side, the company announced in its last earnings report that it's expecting to harvest 30,000 pounds of flower in its next harvest. That's 50% higher than its initial expectations.

Right now, EXDI shares trade near $0.42.

Marijuana Penny Stocks to Watch Now, No. 6

Cannabis Sativa Inc. (OTCMKTS: CBDS) is best known for its line of topical skincare products that incorporate cannabinoids and THC.

CBDS is another micro-cap company, with a market cap just north of $20 million. Its trading volume is higher than EXDI's at 89,000 shares per day.

One bullish sign – revenue is growing at an impressive rate. Through the first nine months of 2019, CBDS reported revenue of $705,000. That was an increase of 72% from the previous year. Still, the company reports a positive cash flow of $11,000 through the first nine months of the year.

CBDS shares can be purchased near $0.94 right now.

Marijuana Penny Stocks to Watch Now, No. 5

CV Sciences Inc. (OTCMTKS: CVSI) is a California CBD company best known for its "PlusCBD" line of oils.

In March 2019, the company reported its products were sold in roughly 3,300 stores in the United States. The company also announced a partnership with The Vitamin Shoppe in 2019 that would bring its products to an additional 515 locations in 36 different states.

CVSI is also one of the rare marijuana penny stocks that expects to be profitable in 2020. Analysts anticipate earnings of $0.08 per share in 2020, compared to a loss of $0.10 per share in 2019. Revenue is also expected to jump nearly 34% this year to $75 million.

CVSI shares trade for $1.09 at the time of writing.

Marijuana Penny Stocks to Watch Now, No. 4

Elixinol Global Ltd. (OTCMTKS: ELLXF) produces and distributes its CBD products throughout Asia, Europe, and North America. But the company isn't just focused on CBD. It also works with marijuana edibles, supplements, and medical-grade cannabis.

ELLXF is another cannabis penny stock that's actually profitable. In its last fiscal year, gross profits were almost $20 million. Plus, quarterly revenue jumped 17% year over year in its last report.

While the company is based in Australia, it announced major U.S. expansion plans last year. In June, the company expanded its Colorado facility by 23,000 square feet, which reportedly doubled the company's production capacity.

Today, shares trade for just $0.59.

But the top penny stocks on our list offer even bigger upside, including with 450% growth potential…