A Nearly 1,100% Gain: Here's the 1 Key Reason Why This Forgotten Tech Stock Crushed the S&P 500

• Zepp Health makes wellness wearables specified arsenic smartwatches, astute rings, and astute bands with biometric sensors that way the vitals of their users.

• The banal has climbed by astir 1,100% implicit the past six months.

• Even aft that monolithic rise, Zepp whitethorn inactive beryllium a bully tech concern to consider.

• 10 stocks we similar amended than Zepp Health ›

It's not often that a banal that skyrockets by astir 1,100% implicit conscionable six months, but that's precisely what shares of Zepp Health (NYSE: ZEPP) person done. That meteoric rise, however, whitethorn look a spot little awesome aft 1 notices that the banal is inactive down by astir 37% from wherever it debuted connected nationalist markets successful February 2018, and disconnected much than 60% from its peak.

Let's instrumentality a person look to spot what has driven the marketplace to bid this shaper of wellness wearables higher successful 2025, and what investors should bash now.

Zepp Health experienced galore ups and downs successful the years pursuing its archetypal nationalist offering, erstwhile it was known arsenic Huami. Beginning successful 2022, however, the banal swung sharply little and stayed down as, aft years of growth, the company's gross reversed people and plummeted.

More recently, however, Zepp delighted investors successful August with second-quarter results that featured notable top-line growth, driven by beardown income of its Amazfit wearables. Zepp reported Q2 gross of $59.4 million, a year-over-year summation of 46.2%. That exceeded the higher extremity of the scope of $50 cardinal to $55 cardinal that absorption had forecast 3 months earlier.

The institution besides projected that robust income maturation would continue, forecasting Q3 gross successful the scope of $72 cardinal to $76 million. And it did study Q3 gross of $75.8 cardinal -- up 78.5% twelvemonth implicit year.

The institution is besides making advancement toward achieving profitability.

Granted, there's inactive immoderate hazard with Zepp banal arsenic the institution continues to incur losses, but the tech stock's 54% pullback from an intraday precocious of $61.85 connected Oct. 9 and the information that it's presently valued astatine lone 1.2 times guardant net suggest that now's a bully clip to see opening a position.

Before you bargain banal successful Zepp Health, see this:

The Motley Fool Stock Advisor expert squad conscionable identified what they judge are the 10 champion stocks for investors to bargain now… and Zepp Health wasn’t 1 of them. The 10 stocks that made the chopped could nutrient monster returns successful the coming years.