HealthStream, Inc. (HSTM) Soars to 52-Week High, Time to Cash Out?

Company Performance - HealthStream (HSTM) shares have increased by 9.3% over the past month, reaching a new 52-week high of $31.7 [1] - Year-to-date, the stock has gained 16.1%, outperforming the Zacks Computer and Technology sector (29.4%) and the Zacks Internet - Services industry (24.8%) [1] Earnings and Revenue - HealthStream has consistently exceeded earnings expectations, reporting EPS of$ 0.19 against a consensus estimate of $0.12 in its last earnings report on October 21, 2024 [2] - For the current fiscal year, the company is projected to achieve earnings of$ 0.63 per share on revenues of $290.96 million, reflecting a 26% increase in EPS and a 4.26% increase in revenues [3] - The next fiscal year forecasts earnings of$ 0.64 per share on revenues of $306.45 million, indicating a year-over-year change of 2.12% in EPS and 5.32% in revenues [3] Valuation Metrics - HealthStream's current valuation metrics show a Price-to-Earnings (P/E) ratio of 50.1X for the current fiscal year, which is higher than the peer industry average of 33.1X [7] - The stock trades at a trailing cash flow basis of 14X compared to the peer group's average of 10.8X, and has a PEG ratio of 4.17 [7] Zacks Rank and Style Scores - HealthStream holds a Zacks Rank of 2 (Buy) due to favorable earnings estimate revisions from analysts [8] - The company has a Value Score of C, a Growth Score of A, and a Momentum Score of C, resulting in a combined VGM Score of B [6] Industry Comparison - The Internet - Services industry is performing well, ranking in the top 26% of all industries, providing a favorable environment for both HealthStream and its peer, Alphabet Inc. (GOOG) [12] - Alphabet Inc. also has a Zacks Rank of 2 (Buy) and has shown strong earnings performance, beating consensus estimates by 15.85% last quarter [11]