Penumbra Stock Discussion

Despite the high P/S ratio, shareholders are holding onto Penumbra's stocks due to its strong future revenue prospects. The strong revenue forecasts are expected to keep the share price buoyant unless the analysts have significantly misjudged the company's potential.

Penumbra's earnings outlook could be brighter than reflected in the statutory profit due to one-off items. The company's profitability this year shows a good sign after previous losses.

Penumbra's low ROE and declining net income over five years hint at sub-par performance. The earnings' decline, despite profit retention, could imply a struggling business or high payout ratio. Analyst estimates, however, foresee a better earnings growth rate.

These are the top stocks as ranked by a growth model that scores companies based on a 50/50 weighting of their most recent quarterly year-on-year (YOY) percentage revenue growth and their most recent quarterly YOY earnings per share (EPS) growth.
Both sales and earnings are critical factors in the success of a company. Therefore, ranking companies by only one growth metric makes a ranking susceptible to the accounting anomalies of that quarter (such as changes in tax law or...