HealthStream, Inc. (HSTM) Hit a 52 Week High, Can the Run Continue?

Company Performance - HealthStream (HSTM) shares have increased by 12.4% over the past month, reaching a new 52-week high of $33.09 [1] - Year-to-date, the stock has gained 20.4%, compared to 28.5% for the Zacks Computer and Technology sector and 20.1% for the Zacks Internet - Services industry [1] Earnings and Revenue - HealthStream has consistently exceeded earnings consensus estimates, reporting EPS of$ 0.19 against a consensus of $0.12 in the last earnings report on October 21, 2024 [2] - For the current fiscal year, HealthStream is projected to achieve earnings of$ 0.63 per share on revenues of $290.96 million, reflecting a 26% increase in EPS and a 4.26% increase in revenues [3] - The next fiscal year is expected to see earnings of$ 0.64 per share on revenues of $306.45 million, indicating a year-over-year change of 2.12% in EPS and 5.32% in revenues [3] Valuation Metrics - HealthStream currently trades at a valuation of 51.9X current fiscal year EPS estimates, significantly higher than the peer industry average of 21.4X [7] - On a trailing cash flow basis, the stock trades at 14.5X compared to the peer group's average of 10.5X, with a PEG ratio of 4.33 [7] - The stock has a Value Score of C, a Growth Score of A, and a Momentum Score of D, resulting in a VGM Score of B [6] Zacks Rank - HealthStream holds a Zacks Rank of 2 (Buy), supported by rising earnings estimates, which aligns with the recommendation for investors to select stocks with Zacks Rank of 1 (Strong Buy) or 2 (Buy) [8] Industry Comparison - The Internet - Services industry is performing well, ranking in the top 16% of all industries, providing favorable conditions for both HealthStream and its peer, Upwork Inc. (UPWK) [11] - Upwork Inc. has also shown strong performance, with a Zacks Rank of 2 (Buy) and a projected EPS of$ 1.13 on revenues of $759.04 million for the current fiscal year [10]