Why Did Mingteng International (MTEN) Soar 13.66% on July 22, 2025?

Mingteng International Corporation Inc. (NASDAQ:MTEN) shares have surged by 13.66% in pre-market trading on July 22, 2025, continuing their recent upward momentum.

Mingteng International has experienced a remarkable 704% gain in the past year, with a 75% increase in the last month alone. This significant price surge has led to a high price-to-sales (P/S) ratio of 14.4x, which is notably higher than the industry average of below 0.7x. This high P/S ratio suggests that investors are optimistic about the company's future revenue growth, despite the industry's average growth rate of 9.8% over the next year.

Mingteng International's recent revenue growth has been impressive, with a 23% gain in the last year and a 31% increase over the past three years. This strong performance has likely contributed to the high P/S ratio, as investors anticipate continued growth. However, the company's recent medium-term revenue trends may not support such positive sentiment for long, potentially placing shareholders' investments at risk.

Despite the high P/S ratio, Mingteng International's strong share price surge and impressive revenue growth have made it an attractive investment option for many. However, potential investors should be aware of the risks associated with the high P/S ratio and the possibility of a share price correction if recent revenue trends do not continue.