There’s No Escaping Cerence Inc.’s (NASDAQ:CRNC) Muted Revenues Despite A 133% Share Price Rise
Cerence Inc. (NASDAQ:CRNC) shares have continued their recent momentum with a 133% gain in the last month alone. The bad news is that even after the stocks recovery in the last 30 days, shareholders are still underwater by about 2.9% over the last year.
In spite of the firm bounce in price, Cerence may still look like a strong buying opportunity at present with its price-to-sales (or “P/S”) ratio of 2.5x, considering almost half of all companies in the Software industry in the United States have P/S ratios greater than 5.6x and even P/S higher than 13x aren’t out of the ordinary. However, the P/S might be quite low for a reason and it requires further investigation to determine if it’s justified.
