Is ZOM a Good Stock to Buy? Detailed Analysis (Nov. 2023)

Written By Ben Broadwater

Posted November 7, 2023

In light of a recent uptick in share price, many investors are wondering "is ZOM a good stock to buy"? Zomedica Corp. (NYSEAMERICAN: ZOM) is a veterinary health company that develops and commercializes diagnostic and therapeutic products for companion animals. The company's flagship product is TRUFORMA, a point-of-care diagnostic platform that can detect a variety of diseases in dogs and cats. Zomedica also offers other products, such as the VetGuardian remote monitoring system and the PulseVet shockwave therapy platform.

ZOM stock has been volatile in recent years, but it has shown signs of promise in recent months.

is zom a good stock to buy?

Is ZOM a Good Stock to Buy?

Whether or not ZOM stock is a good stock to buy depends on a number of factors, including your investment goals, risk tolerance, and time horizon.

Investment Goals

First, if you are looking for a stock that has the potential to generate high returns over the long term, ZOM may be a good investment for you. The company has a number of innovative products in development, and it is operating in a large and growing market. However, it is important to remember that ZOM is still in the early stages of growth, and its products are not yet widely adopted. This means that there is a risk that the company may not be successful in the long term.

Risk Tolerance

ZOM stock is a high-risk investment. The company is still in the early stages of growth, and its products are not yet widely adopted. This means that there is a risk that the company may not be successful in the long term. Additionally, ZOM faces competition from other established veterinary companies, as well as from startups.

Time Horizon

The question "is ZOM a good stock to buy?" depends on time horiozon. If you are investing for the long term (5+ years), ZOM may be a good investment for you. The company has a number of innovative products in development, and it is operating in a large and growing market. However, if you are investing for the short term (less than 5 years), you may want to avoid ZOM stock, as there is a risk that the company may not be successful in the short term.

Here is a more detailed analysis of the pros and cons of investing in ZOM stock:

is zom a good stock to buy - chart?

Pros:

  • Strong growth potential: Zomedica is operating in a large and growing market. The global pet care market is expected to reach $270 billion by 2026. The company is also well-positioned to benefit from the increasing trend of pet humanization.
  • Innovative products: Zomedica is developing a number of innovative products, such as TRUFORMA, which has the potential to revolutionize the way that diseases are diagnosed in veterinary medicine.
  • Experienced management team: Zomedica's management team has a deep understanding of the veterinary industry and a proven track record of success.

Cons:

  • Product development risk: Zomedica is still in the early stages of product development. There is a risk that the company's products may not be successful in the market.
  • Competition: Zomedica faces competition from other established veterinary companies, as well as from startups.
  • Regulatory risk: Zomedica's products are subject to government regulation. There is a risk that the company may not be able to obtain or maintain regulatory approval for its products.
  • Financial risk: Zomedica is burning through cash and has a significant amount of debt. The company will need to raise additional capital to continue funding its growth initiatives.

Whether or not ZOM stock is a good stock to buy depends on your investment goals, risk tolerance, and time horizon. If you are looking for a stock that has the potential to generate high returns over the long term and you are comfortable with taking on risk, ZOM may be a good investment for you. However, if you are investing for the short term or you have a low risk tolerance, you may want to avoid ZOM stock. 

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Is ZOM a Good Stock to Buy? – Additional Information

Here is some additional information that you may want to consider before investing in ZOM stock:

ZOM stock is trading at a significant discount to its peers

The stock's price-to-sales ratio is currently 6.34, which is significantly higher than the median healthcare stock. This suggests that ZOM stock may be overvalued.

Expanding Sales and Marketing Efforts

Zomedica is expanding its sales and marketing efforts in order to reach more veterinarians and pet owners. The company recently hired a new VP of Sales and Marketing who has a proven track record of success in the veterinary industry. Zomedica is also investing in new marketing campaigns to raise awareness of its products among veterinarians.

Launching New Products

Zomedica plans to launch several new products in the coming months, including a new rapid test for canine parvovirus and a new blood chemistry analyzer. These new products have the potential to expand Zomedica's reach into new markets and generate additional revenue for the company.

Entering New Markets

Zomedica recently announced that it will be expanding into the international market. The company has already signed distribution agreements with companies in several countries, and the company expects to begin selling its products in these new markets in 2023.

Financial Performance

Zomedica is still in the early stages of growth, and the company is not yet profitable. In 2022, Zomedica generated $17.86 million in revenue and lost $17.86 million. The company expects to continue to burn through cash in 2023 as it invests in growth initiatives.

Is ZOM a Good Stock to Buy – Conclusion

ZOM stock is a high-risk, high-reward investment. The company has strong growth potential and a number of innovative products in development. However, investors should be aware of the risks associated with investing in ZOM, such as product development risk, competition, regulatory risk, and financial risk.

Overall, ZOM stock may be a good investment for aggressive investors who are willing to take on risk in exchange for the potential for high returns. However, conservative investors may want to avoid the stock until it has a more proven track record.

Additional Considerations

Here are some additional things to consider before investing in ZOM stock:

  • Zomedica is still in the early stages of growth. This means that there is a risk that the company may not be successful in the long term.
  • Zomedica faces competition from other established veterinary companies, as well as from startups. This competition could make it difficult for Zomedica to gain market share and generate revenue.
  • Zomedica is burning through cash. The company will need to raise additional capital in order to continue funding its growth initiatives. If Zomedica is unable to raise additional capital, it could be forced to slow down its growth plans or even go out of business.

We hope this article was able to answer the question, "Is ZOM a Good Stock to Buy?" Want more information on ZOM stock and other investment opportunities? Sign up for our free Wealth Daily newsletter today.

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