What Happened?
Shares of healthcare software provider Health Catalyst (NASDAQ:HCAT) jumped 6.6% in the afternoon session after the stock gained ground amid broader positive market sentiment ahead of a busy week for corporate earnings.
U.S. stock futures indicated a higher open for the markets, setting a positive tone for investors who were anticipating a heavy slate of earnings reports from major companies during the week. Notably, the earnings season got off to a strong start: More than 85% of the S&P 500 stocks that reported earnings exceeded expectations, according to FactSet data. This robust performance fueled positive sentiment, suggesting that corporate profitability remained resilient despite ongoing economic uncertainties.
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What Is The Market Telling Us
Health Catalyst’s shares are extremely volatile and have had 42 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 12 months ago when the stock gained 40.1% on the news that the company reported second-quarter results that narrowly topped analysts' revenue expectations, while EPS beat by a more convincing margin. Adjusted EBITDA and Free cash flow also beat Wall Street's estimates during the quarter. On the other hand, its revenue guidance for the next quarter missed analysts' expectations, and its gross margin shrunk. Overall, this was a mixed, yet decent quarter for the company.
Health Catalyst is down 47% since the beginning of the year, and at $3.88 per share, it is trading 56.9% below its 52-week high of $9.02 from December 2024. Investors who bought $1,000 worth of Health Catalyst’s shares 5 years ago would now be looking at an investment worth $106.93.
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