HealthStream, Inc. ($HSTM) Target: $9 Confident Investor Rating: Fair

Several times a year, a Confident Investor must reevaluate the companies in the portfolio. Keeping your money in a stock that no longer qualifies as a "Good" company can end up hurting your investment performance a great deal.  Also, there are a lot of Good Companies so losing the worst of the best is not going to impact the ability to have a balanced portfolio.  Over the coming days, this site will evaluate each stock on the Watch List.

 

Company name HealthStream, Inc.
Stock ticker HSTM
Live stock price [stckqut]HSTM[/stckqut]
P/E compared to competitors Fair
MANAGEMENT EXECUTION
Employee productivity Poor
Sales growth Good
EPS growth Poor
P/E growth Good
EBIT growth Good
ANALYSIS
Confident Investor Rating Fair
Target stock price (TWCA growth scenario) $11.61
Target stock price (averages with growth) $14.11
Target stock price (averages with no growth) $7.94
Target stock price (manual assumptions) $11.4

The following company description is from Google Finance: http://www.google.com/finance?q=hstm
HealthStream, Inc. (HealthStream) provides Internet-based learning and research solutions to meet the training, information, and education needs of the healthcare industry. The Company?s learning products are used by healthcare organizations to meet a range of their training and assessment needs, while its research products provide its customers information about patients? experiences, workforce challenges, physician relations, and community perceptions of their services. HealthStream's customers include healthcare organizations, pharmaceutical and medical device companies, and other participants in the healthcare industry. Its customer base across both learning and research business units includes over 2,500 healthcare organizations (predominately acute-care facilities) throughout the United States. It delivers educational and training courseware to its customers through the HLC platform.

 

Confident Investor comments: At this time, I think that a Confident Investor can cautiously invest in this stock as long as the price is correct. Most of the fundamentals of this company are good but there are some concerns. Since the company is no longer ranked as Good, I will remove it from my Watch List.  If you have already built up a position in this stock, you may want to hold this stock and not aggressively add to your position.

 

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