WEBULL

Revenues Tell The Story For HUHUTECH International Group Inc. (NASDAQ:HUHU) As Its Stock Soars 25%

Simply Wall St · 2d ago

Despite an already strong run, HUHUTECH International Group Inc. (NASDAQ:HUHU) shares have been powering on, with a gain of 25% in the last thirty days. The last month tops off a massive increase of 169% in the last year.

After such a large jump in price, when almost half of the companies in the United States' Construction industry have price-to-sales ratios (or "P/S") below 1.3x, you may consider HUHUTECH International Group as a stock not worth researching with its 14x P/S ratio. However, the P/S might be quite high for a reason and it requires further investigation to determine if it's justified.

Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit.

View our latest analysis for HUHUTECH International Group

ps-multiple-vs-industry
NasdaqCM:HUHU Price to Sales Ratio vs Industry December 23rd 2025

How Has HUHUTECH International Group Performed Recently?

HUHUTECH International Group has been doing a good job lately as it's been growing revenue at a solid pace. Perhaps the market is expecting this decent revenue performance to beat out the industry over the near term, which has kept the P/S propped up. You'd really hope so, otherwise you're paying a pretty hefty price for no particular reason.

Although there are no analyst estimates available for HUHUTECH International Group, take a look at this free data-rich visualisation to see how the company stacks up on earnings, revenue and cash flow.

What Are Revenue Growth Metrics Telling Us About The High P/S?

The only time you'd be truly comfortable seeing a P/S as steep as HUHUTECH International Group's is when the company's growth is on track to outshine the industry decidedly.

If we review the last year of revenue growth, the company posted a worthy increase of 9.3%. Pleasingly, revenue has also lifted 53% in aggregate from three years ago, partly thanks to the last 12 months of growth. So we can start by confirming that the company has done a great job of growing revenues over that time.

When compared to the industry's one-year growth forecast of 12%, the most recent medium-term revenue trajectory is noticeably more alluring

With this information, we can see why HUHUTECH International Group is trading at such a high P/S compared to the industry. It seems most investors are expecting this strong growth to continue and are willing to pay more for the stock.

What We Can Learn From HUHUTECH International Group's P/S?

Shares in HUHUTECH International Group have seen a strong upwards swing lately, which has really helped boost its P/S figure. We'd say the price-to-sales ratio's power isn't primarily as a valuation instrument but rather to gauge current investor sentiment and future expectations.

As we suspected, our examination of HUHUTECH International Group revealed its three-year revenue trends are contributing to its high P/S, given they look better than current industry expectations. In the eyes of shareholders, the probability of a continued growth trajectory is great enough to prevent the P/S from pulling back. Unless the recent medium-term conditions change, they will continue to provide strong support to the share price.

Don't forget that there may be other risks. For instance, we've identified 2 warning signs for HUHUTECH International Group (1 is a bit concerning) you should be aware of.

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