Zynex Inc. (ZYXI)

[banellie]

You think the stock trading at 43x estimated earnings is troublesome, but I see this as opportunity due to analysts' estimates being way too low. I believe this company will earn 55 cents this year, plus or minus 15 cents per share. That would put the p/e of somewhere around 20 for a company growing revenue well over 50%. I have their forward p/e of less than 10 to give you an idea of how much analysts could be off the mark. Since Zynex has a lot of operating leverage, earnings will be growing even faster than revenue over the coming years, especially once they're done expanding their sales force sometime next year.

Once analysts update their earnings forecast, the stock should respond accordingly. I could see Zynex blowing out earnings and sales growth for the next 3 years or so. According to my model, analysts will look like fools for their estimates being so low for both this year and next. We got a taste of this with their most recent earnings and order growth update, and that taste was just a sample of what is to come.