Published on 18 Dec 2023 on Simply Wall St. via Yahoo Finance

Alector, Inc. (NASDAQ:ALEC) Shares Fly 92% But Investors Aren't Buying For Growth

Alector, Inc. (NASDAQ:ALEC) shareholders would be excited to see that the share price has had a great month, posting a 92% gain and recovering from prior weakness. The bad news is that even after the stocks recovery in the last 30 days, shareholders are still underwater by about 6.3% over the last year.

In spite of the firm bounce in price, Alector may still be sending bullish signals at the moment with its price-to-sales (or "P/S") ratio of 7.2x, since almost half of all companies in the Biotechs industry in the United States have P/S ratios greater than 11.6x and even P/S higher than 49x are not unusual. However, the P/S might be low for a reason and it requires further investigation to determine if it's justified.

View our latest analysis for Alector