Zynerba Pharmaceuticals (NASDAQ:ZYNE) is on an absolute roll right now. Indeed, over the past five trading days, ZYNE stock has nearly doubled. Today, shares of this cannabis-related specialty pharmaceutical company have continued their rapid rise. In fact, these shares minted fresh 52-week highs as sentiment in this sector has gone from red-hot to white-hot.
What’s driving this impressive rally?
I think there are two key catalysts responsible for most of this move.
Medical Cannabis Is Hot Right Now
The recent Tilray (NASDAQ:TLRY) deal with Grow Pharma has stoked investor interest in the medical cannabis space. Cannabis is legalized in many jurisdictions globally for medicinal purposes. The market continues to grow for innovative therapies for serious illnesses such as epilepsy. Indeed, research supports the use of cannabis to treat a range of rare diseases with impressive efficacy.
Enter Zynerba. The company’s innovative cannabinoid therapeutic products are understandably intriguing for investors. The company’s core product, Zygel, is a cannabidiol gel. This is a differentiated product from what’s in the market today, and is formulated for transdermal delivery.
Accordingly, the market seems to be rewarding this differentiation right now. Indeed, it appears investors are very bullish on innovative therapeutics such as those on the process of being brought to market by Zynerba.
Retail Investors Jumping on ZYNE Stock Right Now
It appears retail investors on Reddit’s r/WallStreetBets forum have shifted gears in a big way. There’s a lot of discussion around the cannabis sector right now on this forum. Indeed, as more investors post about their ridiculous gains, the interest level continues to heat up. Accordingly, options like ZYNE stock look very appealing to many retail investors looking for a quick win. These smaller-cap speculative companies that are difficult to value intrinsically are easy targets.
On top of this, Zynerba has very strong long-term growth potential. Its core product offering is unique and differentiated. Additionally, its core product is patentable. The cannabis sector is filled with homogenous offerings. However, ZYNE stock stands out as a potential winner in its niche target market. This appears to be stoking retail investor interest to new highs.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.