Zepp Health reported strong Q3 revenue growth of 78.5%, forecasted 40% growth in current quarter. Stock surged 10x. Amazfit brand helping inch back to profitability in wearables market. Undervalued stock with P/S ratio of 3.98. Analysts yet to cover company.

Zepp Health Corp., the maker of low-end wearable devices, reported a significant 78.5% revenue increase in the third quarter and expects this growth rate to ease to around 40% in the current quarter. The company achieved breakeven on an adjusted operating basis, marking its second consecutive quarter of strong revenue growth. Zepp Health's revenue growth is attributed to its Amazfit-brand products carving a niche in the lower end of the market. Despite its stock surging by over 10 times since July, it has lost 40% of its value from a peak in September. The stock is currently trading at a relatively modest price-to-sales ratio of 3.98, showcasing that the recent surge might be due to the company previously being undervalued. The article highlights skepticism regarding the legitimacy of Zepp Health's stock surge, drawing parallels to meme-stock phenomena, but posits that the increase seems sustainable. The company is yet to be fully recognized by the analyst community, with only one analyst currently covering it.