InvestorPlace
Wait For a Pullback Before Jumping Into Xpeng Stock
Electric vehicle (EV) stocks remain hot. But, so far this month, none have held a candle to China-based Xpeng (NYSE:XPEV) stock. Shares have more than doubled since Nov 1. As a result, shares now trade at a sky-high valuation.
Source: Johnnie Rik / Shutterstock.com
Based on trailing twelve month revenues, shares currently sell for a price/sales (P/S) ratio of 18.8! Sure, considering rival Nio (NYSE:NIO) sports a P/S ratio of 34.2, this doesn’t look too unreasonable. But, that doesn’t mean its reasonably priced.
Yes, present results aren’t what investors are valuing this stock on. But, even when factoring for growth, it’s obvious investors have gotten carried away, with this stock fully in bubble mode. The…
Source link
