In a week where stocks have seen sweeping declines, Zynerba Pharmaceuticals Inc. (NASDAQ: ZYNE) shares are up 23.65% over the last five days. Analysts are optimistic about this stock and its potential recovery after the current market downturn. It’s a pick worth considering for an alternative portfolio.
Zynerba is a pharmaceutical company that focuses on cannabinoid therapies. Its most promising product, Zygel™, is a CBD based transdermal gel that has the potential to treat ultra-rare epilepsies like Fragile X Syndrome in children. The gel has also shown potential as an Autism Spectrum Disorder treatment. Although still in trial stages, the company’s novel therapies could create strong revenue streams in the long term.
Financial results are impressive. Cash and cash equivalents grew last year. In its fourth-quarter report, the company reported cash and equivalents of $70.1 million, compared to $59.8 million in the year before. Zynerba currently has sufficient cash to fund itself through to submission and approval of Zygel in 2021.
For investors who aren’t interested in the recreational cannabis market, this stock offers exposure to the wider industry. With a price target of $17.14, there’s a significant upside implied.
- 1 Year Price Growth: 76%
- YTD Price Growth: -13.55%
- 3 Month Price Growth: -12.46%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.