Despite strong revenue growth, market expectations of dwindling future performance have suppressed the P/S ratio. Limited growth rates and expectations of their continuation have reduced willingness to pay more for the stock.
Investors expect the company's limited growth rates to continue, reflected in the low P/S ratio. Unless conditions improve, this will form a barrier for the share price.
The surge in Xiamen King Long Motor Group's share price and revenue hints at business momentum, which might be worth deeper exploration. Be mindful of the 2 warning signals. Large insider buys could boost confidence.
Xiamen King Long Motor Group Stock Forum
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