Back to top

Image: Bigstock

Bull Of The Day: Heath Catalyst (HCAT)

Read MoreHide Full Article

Health Catalyst (HCAT - Free Report) is a Zacks  Rank #2 (Buy) that sports an F for Value and B for Growth.  I love to see that growth divergence with a strong growth style score and a weak value style score.  It tells me right away that I am on the correct path. HCAT is a provider of data and analytics technology and services to healthcare organizations. 

The company is utilizing data to address pain points for its customers and in watching a company event I learned that the customers are often the ones that build on the platform.  The company will then share this “best practice” with other customers in an effort to improve the overall system.

Let’s take a deeper look at this stock in this Bull of the Day article.

Description

Health Catalyst Inc. is a provider of data and analytics technology and services to healthcare organizations. Health Catalyst Inc. is based in Salt Lake City, Utah.

Earnings History

When I look at a stock, the first thing I do is look to see if the company is beating the number.  This tells me right away where the market’s expectations have been for the company and how management has communicated to the market.  A stock that consistently beats has management communicating expectations to Wall Street that can be achieved.  That is what you want to see.

For HCAT, I see a good history of beating the Zacks Consensus Estimate.  There are four beats over the last four quarters.

The average positive earnings surprise over the last fours quarters works out to be 46%, which means the company is consistently posting good-sized beats of the Zacks Consensus Estimate. 

Earnings Estimates Revisions

The Zacks Rank tells us which stocks are seeing earnings estimates move higher.  For HCAT, I see estimates moving higher.

Over the last 60 days, I see a few increases.

This quarter has seen a one cent increase.

Next quarter has held still.

The full year 2021 is holding still right now as well.

Next year has seen an increase of 1 cent.

Positive movement in earnings estimates like that is why this stock is a Zacks Rank #2 (Buy).

Valuation

The company is running a loss so there is no forward PE to lean on.  I see 8x book multiple which is a little high.  The price to sales multiple is 10.2x, and that too is a bit high.  I say that as there is great growth of 37% in the most recent quarter.  This year the company is expected to post 23.5% topline growth and accelerate to 28.5% next year.  That year over year growth is just what we love to see from a name like this.  Throw in a few positive reports and this stock could easily be up triple digits a year from now.

Chart

Health Catalyst, Inc. Price, Consensus and EPS Surprise

Health Catalyst, Inc. Price, Consensus and EPS Surprise

Health Catalyst, Inc. price-consensus-eps-surprise-chart | Health Catalyst, Inc. Quote


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Health Catalyst, Inc. (HCAT) - free report >>

Published in