One Penny Stock Posting Extraordinary Gains

The Fed’s persistent hawkish stance to tame the stubborn inflation and the consequent increase in recession fears have led the widely-followed stock indices to witness massive sell-offs this year.

While most well-known names in the market got caught in the brutal sell-off, penny stock Pulse Biosciences (PLSE) witnessed a solid uptrend, gaining 54.3% over the past month and 11.9% over the past three months.

PLSE Chart

Source: MarketClub

PLSE operates as a novel bioelectric medicine company. It provides CellFX System, a tunable, software-enabled, and console-based platform used to treat various medical conditions using its Nano Pulse Stimulation technology.

The medical therapy company delivered impressive results for the second quarter that ended June 30, 2022. During the quarter, the company transitioned its commercial focus toward utilizing CellFX Systems in a select group of dermatology clinics. In addition, the company completed two commercial sales of CellFX Systems.

Furthermore, PLSE is expanding strategic opportunities within healthcare and anticipates a concentrated focus on the oncology, gastroenterology, and cardiac sectors.

PLSE is trading above its 50-day moving average of $1.73, indicating an uptrend. While the company is yet to turn profitable, Wall Street expects its loss to decline in the upcoming quarters, which could help the stock grab some more investor attention and maintain its momentum.

In terms of its forward EV/Sales, PLSE is trading at 73.74x compared to the industry average of 3.81x. The stock’s forward Price/Sales of 72.31x compares to the industry average of 4.25x.

Is it a good idea to buy shares of a loss-making company if it trades at a high premium to its peers but is trending upward?

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Here is what could influence PLSE’s performance in the upcoming months: Continue reading "One Penny Stock Posting Extraordinary Gains"