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HealthStream has the Highest PEG Ratio in the Health Care Technology Industry (HSTM, ATHN, MDSO, CERN, CPSI)

By Amy Schwartz

Below are the three companies in the Health Care Technology industry with the highest price to earnings to growth (PEG) ratios. PEG is valuable in assessing the tradeoff between the price of a stock and expected growth. Generally, the lower the PEG, the better.

HealthStream ranks highest with a a PEG ratio of 3.69. athenahealth is next with a a PEG ratio of 3.58. Medidata Solutions ranks third highest with a a PEG ratio of 2.69.

Cerner follows with a a PEG ratio of 1.93, and Computer Programs & Systems rounds out the top five with a a PEG ratio of 1.83.

SmarTrend recommended that subscribers consider buying shares of Cerner on December 23rd, 2014 as our technology indicated a new Uptrend was in progress when shares hit $65.14. Since that recommendation, shares of Cerner have risen 12.5%. We continue to monitor Cerner for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest peg ratio healthstream Athenahealth medidata solutions cerner computer programs & systems