Treace Medical Concepts, Inc. (NASDAQ:TMCI) shares have continued their recent momentum with a 26% gain in the last month alone. Unfortunately, the gains of the last month did little to right the losses of the last year with the stock still down 28% over that time.
Since its price has surged higher, Treace Medical Concepts may be sending strong sell signals at present with a price-to-sales (or "P/S") ratio of 5.6x, when you consider almost half of the companies in the Medical Equipment industry in the United States have P/S ratios under 3.4x and even P/S lower than 1.3x aren't out of the ordinary. However, the P/S might be quite high for a reason and it requires further investigation to determine if it's justified.
NasdaqGS:TMCI Price to Sales Ratio vs Industry February 16th 2024
How Treace Medical Concepts Has Been Performing
Treace Medical Concepts certainly has been doing a good job lately as it's been growing revenue more than most other companies. The P/S is probably high because investors think this strong revenue performance will continue. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.
If you'd like to see what analysts are forecasting going forward, you should check out our free report on Treace Medical Concepts.
How Is Treace Medical Concepts' Revenue Growth Trending?
Treace Medical Concepts' P/S ratio would be typical for a company that's expected to deliver very strong growth, and importantly, perform much better than the industry.
Retrospectively, the last year delivered an exceptional 39% gain to the company's top line. The latest three year period has also seen an excellent 204% overall rise in revenue, aided by its short-term performance. Therefore, it's fair to say the revenue growth recently has been superb for the company.
Turning to the outlook, the next year should generate growth of 23% as estimated by the seven analysts watching the company. That's shaping up to be materially higher than the 8.8% growth forecast for the broader industry.
In light of this, it's understandable that Treace Medical Concepts' P/S sits above the majority of other companies. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future.
The Final Word
Shares in Treace Medical Concepts have seen a strong upwards swing lately, which has really helped boost its P/S figure. Typically, we'd caution against reading too much into price-to-sales ratios when settling on investment decisions, though it can reveal plenty about what other market participants think about the company.
Our look into Treace Medical Concepts shows that its P/S ratio remains high on the merit of its strong future revenues. It appears that shareholders are confident in the company's future revenues, which is propping up the P/S. Unless these conditions change, they will continue to provide strong support to the share price.
Plus, you should also learn about this 1 warning sign we've spotted with Treace Medical Concepts.
If these risks are making you reconsider your opinion on Treace Medical Concepts, explore our interactive list of high quality stocks to get an idea of what else is out there.
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Treace Medical Concepts, Inc.(纳斯达克股票代码:TMCI)的股价延续了最近的势头,仅在上个月就上涨了26%。不幸的是,上个月的涨幅几乎没有弥补去年的亏损,在此期间,该股仍下跌了28%。
由于价格飙升,Treace Medical Concepts目前可能正在发出强劲的卖出信号,市销率(或 “市销率”)为5.6倍,因为美国医疗设备行业将近一半的公司的市销率低于3.4倍,甚至低于1.3倍的市销率也并非不寻常。但是,市销率可能很高是有原因的,需要进一步调查以确定其是否合理。
纳斯达克GS: TMCI 与行业的股价销售比率 2024 年 2 月 16 日
Treace Medical Concepts 的表现如何
Treace Medical Concepts最近确实做得很好,因为它的收入增长幅度超过了大多数其他公司。市销率可能很高,因为投资者认为这种强劲的收入表现将继续下去。你真的希望如此,否则你会无缘无故地付出相当大的代价。
如果你想了解分析师对未来的预测,你应该查看我们关于Treace Medical Concepts的免费报告。
Treace Medical Concepts的收入增长趋势如何?
Treace Medical Concepts的市销率对于一家预计将实现非常强劲的增长且重要的是表现要好于行业的公司来说是典型的。