Is Zomedica (ZOM) Stock a Good Buy Near 60 Cents?

The Zomedica (NYSEAMERICAN:ZOM) stock has come into focus among investors at different points this year but the stock has not really been a particularly strong performer. At this point of time, the stock may look like a risky bet for most investors and for good reason too. At this point in time, the company’s business remains at a nascent stage despite having launched its pet diagnostics platform Truforma earlier on this year in March.

As a matter of fact, when the company announced its financial results for the 2020 fiscal year, its management noted that Zomedica remained at a ‘development stage’. It also made losses of as much as $16.9 million and recorded no revenues. Such things can be off putting for investors but it might not be a bad idea to take a closer look into Zomedica.

The fundamental business of the company has the promise of growing into something meaningful considering the fact that pet owners in America spent as much as $103.6 billion on their pets in 2020 alone, according to figures from the American Pet Products Association.

That’s a huge market and if the company can make a dent in that market through its Truforma platform then it could only be a good thing for the Zomedica stock. Moreover, spending on pets is not even dependent on the macro economic situation in the country and that is another factor that one needs to remember. Yes, the stock has its fair share of risks and could well be a speculative play at this point, but on the theoretical level investors have reasons to be optimistic.