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Why Zomedica Stock Surged Today

By Joe Tenebruso - Updated Feb 5, 2021 at 1:45PM

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WallStreetBets traders may have found their next target.

What happened

Shares of Zomedica (ZOM 6.30%) hit a new 52-week high on Friday. As of 12:25 p.m. EST, the veterinary health company's stock price was up more than 24%.

So what

Zomedica appears to have caught the attention of traders on the WallStreetBets group on Reddit. As Robinhood and other brokerages limited trading in GameStop and other volatile stocks following their wild price swings, Reddit's army of traders has searched for new profit opportunities.

A person is pointing to a rising stock chart.

Zomedica's stock price jumped on Friday. Image source: Getty Images.

With more than 10% of its shares held short, it's possible that some traders are hoping to ignite a short squeeze in Zomedica. However, the percentage of Zomedica's outstanding shares that are being shorted is far lower than that of GameStop during the time of its epic short squeeze, so it will likely be more difficult to do so. 

Now what

Still, Zomedica has a compelling growth opportunity. The veterinary health specialist is slated to launch its patented Truforma diagnostic system on March 30. The platform is designed to produce fast and accurate results when used to detect diseases in dogs and cats. InvestorPlace analyst Luke Lango believes Zomedica could generate $250 million in revenue by 2025, thanks to Truforma's time- and cost-saving advantages over existing veterinary diagnostic methods. If he's right, Zomedica's stock could have more upside ahead.

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