Even With A 27% Surge, Cautious Investors Are Not Rewarding Vivos Therapeutics, Inc.'s (NASDAQ:VVOS) Performance Completely

Vivos Therapeutics, Inc. (NASDAQ:VVOS) shares have continued their recent momentum with a 27% gain in the last month alone. But the gains over the last month weren't enough to make shareholders whole, as the share price is still down 5.6% in the last twelve months.

In spite of the firm bounce in price, there still wouldn't be many who think Vivos Therapeutics' price-to-sales (or "P/S") ratio of 1.1x is worth a mention when the median P/S in the United States' Healthcare industry is similar at about 1.2x. While this might not raise any eyebrows, if the P/S ratio is not justified investors could be missing out on a potential opportunity or ignoring looming disappointment.

View our latest analysis for Vivos Therapeutics

How Vivos Therapeutics Has Been Performing

While the industry has experienced revenue growth lately, Vivos Therapeutics' revenue has gone into reverse gear, which is not great. It might be that many expect the dour revenue performance to strengthen positively, which has kept the P/S from falling. However, if this isn't the case, investors might get caught out paying too much for the stock.

If you'd like to see what analysts are forecasting going forward, you should check out our free report on Vivos Therapeutics.

How Is Vivos Therapeutics' Revenue Growth Trending?

Vivos Therapeutics' P/S ratio would be typical for a company that's only expected to deliver moderate growth, and importantly, perform in line with the industry.

In reviewing the last year of financials, we were disheartened to see the company's revenues fell to the tune of 9.2%. The last three years don't look nice either as the company has shrunk revenue by 3.6% in aggregate. Accordingly, shareholders would have felt downbeat about the medium-term rates of revenue growth.

Turning to the outlook, the next year should generate growth of 35% as estimated by the two analysts watching the company. With the industry only predicted to deliver 7.5%, the company is positioned for a stronger revenue result.

In light of this, it's curious that Vivos Therapeutics' P/S sits in line with the majority of other companies. It may be that most investors aren't convinced the company can achieve future growth expectations.

The Final Word

Vivos Therapeutics appears to be back in favour with a solid price jump bringing its P/S back in line with other companies in the industry 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.

Despite enticing revenue growth figures that outpace the industry, Vivos Therapeutics' P/S isn't quite what we'd expect. When we see a strong revenue outlook, with growth outpacing the industry, we can only assume potential uncertainty around these figures are what might be placing slight pressure on the P/S ratio. However, if you agree with the analysts' forecasts, you may be able to pick up the stock at an attractive price.

And what about other risks? Every company has them, and we've spotted 4 warning signs for Vivos Therapeutics (of which 2 are concerning!) you should know about.

If strong companies turning a profit tickle your fancy, then you'll want to check out this free list of interesting companies that trade on a low P/E (but have proven they can grow earnings).

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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.