Posted 12/24/2023, 3:00:41 PM
Iris Energy Stock Soars Over 600% in a Year, Raising Questions on Growth Outlook
- Iris Energy's share price has risen 136% over the last month and 603% over the last year, possibly indicating the stock is overvalued based on its high P/S ratio compared to industry averages
- Iris Energy has shown strong revenue growth of 28% over the past year and is forecasted to grow revenue 55% each year over the next 3 years, much faster than the 17% industry average
- Iris Energy's high P/S ratio seems justified by analysts and investors expecting the company to continue its strong revenue growth performance
- The article states Iris Energy may be sending bearish signals with such a high valuation, presenting a risk if growth expectations aren't met
- The article concludes Iris Energy's high P/S is likely reasonable given confidence in future growth, though notes the stock could be overvalued if analysts' forecasts are too optimistic