After Leaping 35% Vivos Therapeutics, Inc. (NASDAQ:VVOS) Shares Are Not Flying Under The Radar

Despite an already strong run, Vivos Therapeutics, Inc. (NASDAQ:VVOS) shares have been powering on, with a gain of 35% in the last thirty days. But the last month did very little to improve the 62% share price decline over the last year.

Since its price has surged higher, you could be forgiven for thinking Vivos Therapeutics is a stock not worth researching with a price-to-sales ratios (or "P/S") of 1.6x, considering almost half the companies in the United States' Healthcare industry have P/S ratios below 1x. Nonetheless, we'd need to dig a little deeper to determine if there is a rational basis for the elevated P/S.

View our latest analysis for Vivos Therapeutics

What Does Vivos Therapeutics' P/S Mean For Shareholders?

Recent times haven't been great for Vivos Therapeutics as its revenue has been rising slower than most other companies. It might be that many expect the uninspiring revenue performance to recover significantly, which has kept the P/S ratio from collapsing. If not, then existing shareholders may be very nervous about the viability of the share price.

Want the full picture on analyst estimates for the company? Then our free report on Vivos Therapeutics will help you uncover what's on the horizon.

Is There Enough Revenue Growth Forecasted For Vivos Therapeutics?

The only time you'd be truly comfortable seeing a P/S as high as Vivos Therapeutics' is when the company's growth is on track to outshine the industry.

If we review the last year of revenue, the company posted a result that saw barely any deviation from a year ago. This isn't what shareholders were looking for as it means they've been left with a 7.7% decline in revenue over the last three years in total. So unfortunately, we have to acknowledge that the company has not done a great job of growing revenue over that time.

Looking ahead now, revenue is anticipated to climb by 25% during the coming year according to the dual analysts following the company. With the industry only predicted to deliver 8.5%, the company is positioned for a stronger revenue result.

With this in mind, it's not hard to understand why Vivos Therapeutics' P/S is high relative to its industry peers. It seems most investors are expecting this strong future growth and are willing to pay more for the stock.

What Does Vivos Therapeutics' P/S Mean For Investors?

Vivos Therapeutics shares have taken a big step in a northerly direction, but its P/S is elevated as a result. While the price-to-sales ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of revenue expectations.

As we suspected, our examination of Vivos Therapeutics' analyst forecasts revealed that its superior revenue outlook is contributing to its high P/S. Right now shareholders are comfortable with the P/S as they are quite confident future revenues aren't under threat. It's hard to see the share price falling strongly in the near future under these circumstances.

Before you take the next step, you should know about the 4 warning signs for Vivos Therapeutics (1 is significant!) that we have uncovered.

If these risks are making you reconsider your opinion on Vivos Therapeutics, explore our interactive list of high quality stocks to get an idea of what else is out there.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.