If You Invested $1,000 In Zomedica Stock 1 Year Ago, Here's How Much You'd Have Now

Investors who have owned stocks in the last year have generally experienced some big gains. In fact, the SPDR S&P 500 SPY total return over the last 12 months is 48.7%. But there is no question some big-name stocks performed better than others along the way.

Zomedica’s Huge Run: One company that has been a great investment in the last year has been veterinary health technology company Zomedica Corp ZOM.

Unfortunately for Zomedica investors, all of the company’s eggs are essentially in one basket at this point, and so far that basket has yielded no financial benefits.

Zomedica is in the process of commercializing its Truforma device, which measures cortisol levels in dogs and cats using bulk acoustic wave technology. If Truforma is a hit, investors are betting on some big sales numbers in coming years. However, at this point, Zomedica’s $0 in product revenues and $16.9 million in net losses in 2020 aren’t doing much to support the stock’s $776.9 million market cap.

Zomedica recently signed an agreement with veterinary distributor Miller Vet Supply, which called Truforma “an industry-changing” technology. The bad news is Zomedica has been flooding the market with shares of stock, diluting investors and raising its share count from around 100 million to nearly 1 billion in the past 12 months.

At the beginning of 2020, Zomedica shares were trading around 33.6 cents. By the beginning of March, the stock had dropped to just 20 cents after news of the coronavirus spreading in China prompted concerns about a U.S. pandemic. When the broad market bottomed in late March, Zomedica shares were trading at around 16.5 cents. The stock didn’t follow the rest of the market in bouncing off of those lows.

Zomedica shares ultimately bottomed at just 6.3 cents in November 2020 before optimism surrounding the Truforma device caught the attention of retail traders on Robinhood and in other online stock trading communities. The stock skyrocketed off its November lows, reaching $1.00 in early January 2021.

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Zomedica In 2021, Beyond: Zomedica shares continued their meteoric rise in late January during a surge in so-called “meme stocks,” such as GameStop Corp. GME and AMC Entertainment Holdings Inc AMC.

The flood of retail stock buying sent the stock skyrocketing to as high as $2.91 in February. Since that time, the dust has settled on the massive run, and expectations for the small company have seemingly come back down to Earth a bit. The stock now trades at around 85 cents.

Zomedica investors who bought one year ago and held on were completely bailed out by the recent run and have now generated an impressive return on their investment. In fact, $1,000 in Zomedica stock bought on April 21, 2020, would be worth about $5,627 today.

Looking ahead, the one analyst covering the stock is expecting a bounce in the next 12 months. The average price target for the lone analyst covering the stock is $1.2, suggesting 43.3% upside from current levels.