Veterinary health company Zomedica (NYSEAMERICAN:ZOM) enjoyed a surge of interest after the onset of the Covid-19 pandemic. Apparently, the demand for pet care came into focus and with that, ZOM stock spiked to short-terms highs.

The share price catapulted far above the crucial $1 level, but then retraced back below that level. As a result, technical traders are watching closely to see what happens next.

Concerning Zomedica’s financials, there was a recent data release and some folks might have misinterpreted the company’s quarterly revenues.

Today, we’ll attempt to clear up any misunderstanding regarding that. At the end of the day, the skeptics might even change their minds and consider a position in this fascinating pet health company.

ZOM Stock at a Glance

To say that this is a penny stock (defined by the U.S. Securities and Exchange Commission (SEC) as a stock that trades under $5 per share) would not be an exaggeration.

If you can believe it, ZOM stock shares were available for less than a dime in November of 2020. As it turns out, it would have been great to stock up on Zomedica shares back then.

There were two major price spikes in ZOM stock. The first one, in January of 2021, took the share price to $1.30.

Then, there was a second rally in February that took the stock price all the way up to a 52-week high of $2.91. But unfortunately, folks who chased the stock near the top were soon punished.

At the close of the markets on May 27, ZOM stock settled at around 84 cents. So, the battle over $1 is still in effect.

On the other hand, we now know that the stock is capable of moving much higher. A single catalyst could be all it takes for Zomedica’s faithful investors to see substantial gains.

An Innovative Diagnostic Product

Zomedica’s main business is to create products for companion animals, including dogs and cats.

March 16 was an important day for Zomedica. That’s when the company launched its Truforma diagnostic testing product for cats and dogs in veterinary offices.

As InvestorPlace contributor describes it, Truforma is a test for adrenal and thyroid health in dogs and cats. It’s designed for use in clinics, so test results can come back promptly – no need to send a blood test to a third-party lab and then wait for days.

This should make Truforma attractive to pet health clinics, as practitioners and pet owners would certainly appreciate getting fast results.

And as Zomedica innovates with the Truforma platform, the company is operating in a potentially lucrative addressable market.

In fact, as Zomedica reports, the global veterinary immunodiagnostic market has been predicted to expand at a CAGR of 9.6% and reach $2.1 billion by 2022.

ZOM Stock: Don’t Misinterpret the Results

As you can see, Zomedica could be a major competitor in a high-conviction market.

However, not everyone sees the potential in Zomedica. On May 12, the company released its first-quarter 2021 fiscal results, and some folks may have jumped to the wrong conclusion.

For that quarter, Zomedica recorded revenues of $14,124. Now, on the face of it, that might not sound too impressive.

Let’s keep in mind, though, that the first quarter ended on March 31. And as I alluded to earlier, the first sale of Truforma to a veterinarian took place on March 15 and was announced in a press release a day later.

In other words, upcoming fiscal reports will provide more clarity on the progress of Zomedica’s commercialization of Truforma.

As the company put it, “We expect that revenue will increase in subsequent periods as we increase our sales and marketing activities and have full periods during which we obtain sales and record related revenue.”

ZOM Stock: The Takeaway

Truforma could turn out to be a real game changer and a major revenue generator for Zomedica.

So, it doesn’t make sense to form premature conclusions based on the first-quarter results.

Instead, focus on the promising future of the pet-health industry — and Zomedica’s growth prospects within it.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.

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