There’s No Escaping Compugen Ltd.’s (NASDAQ:CGEN) Muted Revenues Despite A 25% Share Price Rise
Compugen Ltd. (NASDAQ:CGEN) shares have had a really impressive month, gaining 25% after a shaky period beforehand. While recent buyers may be laughing, long-term holders might not be as pleased since the recent gain only brings the stock back to where it started a year ago.
Although its price has surged higher, Compugen may still be sending bullish signals at the moment with its price-to-sales (or “P/S”) ratio of 7.6x, since almost half of all companies in the Biotechs industry in the United States have P/S ratios greater than 10.3x and even P/S higher than 89x are not unusual. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the reduced P/S.
