The shares of Clear Secure (YOU) gained nearly 30% in price on its stock market debut on June 30, 2021. However, the stock has been retreating since. So, considering the company’s poor fundamentals and profitability, is it worth adding the stock to one’s portfolio? Let’s find out.Biometric security company Clear Secure Inc. (YOU), which is headquartered in New York City, made its stock market debut on June 30, 2021, and gained nearly 30% in early trading on its first day. The company has established itself as a pioneer in biometric security services by providing a secure identification platform, a multi-layered infrastructure consisting of a front-end–including enrollment, verification–and a strong, secure, and scalable back-end.
However, YOU’s shares have plummeted 41.3% in price over the past three months and 42.5% over the past month to close yesterday’s trading session at $26.30. Though the company made significant progress after shifting to biometric screening services to capitalize on the increased travel restrictions during the COVID-19 pandemic, its financials are yet to reflect the benefits of the strategic shift.
In addition, YOU is currently trading at a premium valuation, considering its poor prospects. In terms of its forward EV/Sales, the stock is currently trading at 6.54x, which is 58.1% higher than the 4.13x industry average. Furthermore, YOU's 7.88x forward Price/Sales is 95.3% higher than the 4.03x industry average. This, along with YOU's weak profitability, could cause the stock to suffer further price declines in the near term.