TransMedics Group, Inc.’s (NASDAQ:TMDX) P/S Is Still On The Mark Following 38% Share Price Bounce
TransMedics Group, Inc. (NASDAQ:TMDX) shares have continued their recent momentum with a 38% 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 6.4% over the last year.
After such a large jump in price, you could be forgiven for thinking TransMedics Group is a stock to steer clear of with a price-to-sales ratios (or “P/S”) of 8.8x, considering almost half the companies in the United States’ Medical Equipment industry have P/S ratios below 2.8x. However, the P/S might be quite high for a reason and it requires further investigation to determine if it’s justified.
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