Zomedica (NASDAQ:ZOM) is once again in the spotlight, and this time bulls are betting it can reach $2 soon. With that goal in place, ZOM stock is up another 20% on Thursday. But without any company news, what is behind the rally? And what else do you need to know now?
For those unfamiliar, Zomedica is a company that wants to revolutionize pet care. In order to do that, it wants to better equip vets to take care of our furry friends. The company recognizes that veterinarians need better tools to diagnose domestic animals faster, and start accurately treating them as soon as possible. Its leading candidate is Truforma, a point-of-care platform that aims to do just that.
While this is exciting and promises to disrupt pet medicine as we know it, what has ZOM stock on the move today? The latest news from the company dates back to late January, when Zomedica announced it had signed a distribution agreement for its Truforma platform.
Although that press release is not new, it speaks to the first reason Zomedica shares are climbing today. Essentially, back on Jan. 25, the company announced it would partner with Miller Veterinary Supply to distribute Truforma. As part of this, Zomedica plans to launch sales on March 30, meaning that a huge catalyst for ZOM stock is just a few weeks away. Through the deal with Miller, Truforma will end up in the hands of more vets, as the partner has a presence from Texas to Maine.
Now, it seems that investors are continuing to bid shares up ahead of that March date. While this is not the first time we have seen such a rally, there is talk Zomedica could soon take out $2. Right now, shares are trading hands for roughly $1.40.
What to Know About the Rally in ZOM Stock
There is one other reason behind the rally in ZOM stock today. Although Zomedica was far from the focus of r/WallStreetBets last week, shares did not escape Redditors. In fact, several posts from last week highlight the bull case for the pet-care play. One post outlined how shares could be a good alternative to GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC), which both faced heavy trading restrictions on platforms like Robinhood.
How does that benefit Zomedica today? Well, legendary investor Mark Cuban is taking a stand against short-sellers and Robinhood. In recent days, he has reminded r/WallStreetBets posters of their power against Wall Street. He also said that he sees more short squeeze potential ahead, encouraging retail investors to continue holding on to their shares. While this is more of a push for GME and AMC, there is reason to believe it is also helping speculative stocks like ZOM.
What should you do here? Zomedica continues to benefit from a longer-term trend in pet care. With Truforma sales launching in just a few weeks, this is definitely a stock to keep on your radar.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.