Why Did Chanson International Holding (NASDAQ:CHSN) Plunge 11.11%?

On June 16, 2025, Chanson International Holding (NASDAQ:CHSN) experienced a significant drop of 11.11% in pre-market trading, marking a challenging period for the company's stock performance.

Chanson International Holding has faced a tumultuous month, with its shares plummeting by 58% following a relatively stable period. This decline has resulted in a 92% decrease in share price over the past year, making it a difficult time for long-term investors. Despite the substantial drop in price, the company's price-to-sales (P/S) ratio remains at 0.3x, which is close to the industry median of 0.4x. This ratio suggests that while the company's valuation may not be alarming, investors should be cautious about potential risks or opportunities that may arise.

Chanson International Holding has shown decent revenue growth recently, which could explain the moderate P/S ratio. The company's revenue has increased by 5.7% over the past year and 24% over the past three years. This growth rate is higher than the industry's predicted growth of 4.9% for the next 12 months, indicating that the company's performance is stronger than its peers. However, the P/S ratio suggests that investors may not be convinced that Chanson can maintain its recent growth rates, leading to a cautious outlook on the stock.

Despite the recent challenges, Chanson International Holding's revenue trends over the past three years have not significantly impacted its P/S ratio. This could be due to potential risks that investors are anticipating, such as revenue instability. The company's strong revenue growth and faster-than-industry growth rates should normally provide a boost to the share price, but the current market sentiment suggests otherwise. Investors should be aware of these risks and consider them when evaluating the company's future prospects.