ZOM Stock: Can the Latest Meme Stocks Surge Take Zomedica to $1?

In recent days, meme stocks have turned green in a big way. Shares of GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) are both up big over the past week. Investors in Zomedica (NYSE:ZOM) and ZOM stock appear to be riding these coattails.

A magnifying glass zooms in on the website for Zomedica (ZOM).
Source: Postmodern Studio / Shutterstock.com

Indeed, ZOM stock has surged from under 50 cents per share this time last week to as high as 67 cents today. This move has been driven, at least in part, by surging retail investor interest.

Today, social media is exploding with interest in ZOM stock as it shoots 20% higher. Some retail traders think Zomedica is headed for the $1 level in short order. As a highly shorted stock, Zomedica is a company that is in the crosshairs of short-squeeze speculators. The company’s recent rallies provide credence to this thesis and allow investors’ imaginations to run wild.

However, some retail traders may be cautious with Zomedica. After all, this is a company that has seen an absolutely massive 52-week range of 6 cents to $2.91. Volatility is the name of the game with these meme-stock plays, making this stock well-suited for those with a penchant for high-risk, high-reward plays.

Let’s take a look at some of the catalysts Zomedica bulls are pointing to as reasons to buy into this risk-reward today.

ZOM Stock Surging on Retail Investor Interest

One of the key catalysts fellow InvestorPlace contributor David Moadel pointed out in a recent piece is the commercialization timeline of Zomedica’s proprietary TRUFORMA platform. This veterinary diagnostics tool has seen limited adoption thus far. The company notes this in its recent earnings releases. However, the company expects the fourth quarter to bring higher sales. This is a result of a fT4 assay which will be available for commercial sale later this year.

“We expect that the fT4 assay will be available for commercial sale in the fall of 2021 and that the ACTH assay will be available for commercial sale by the end of 2021,” Zomedica assured.

It appears investors are demanding immediate results for Zomedica. For investors who believe in this company’s product pipeline and sales funnel, there’s little to worry about. However, as with other execution-based bets, there is some level of risk. Today, investors appear to be taking a risk-on approach to such stocks.

On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2021/08/zom-stock-can-the-latest-meme-stocks-surge-take-zomedica-to-1/.

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