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Top 5 Companies in the Health Care Technology Industry With the Lowest P/E Ratio (CPSI, CERN, ATHN, HSTM, MDSO)

By David Diaz

Below are the three companies in the Health Care Technology industry with the lowest price to earnings (P/E) ratios. P/E is an important valuation tool when comparing companies in the same industry. A higher P/E ratio means that investors are paying more for each unit of net income, so the stock is more expensive compared to one with a lower P/E ratio.

Computer Program ranks lowest with a a P/E ratio of 25.87. Cerner Corp is next with a a P/E ratio of 33.26. Athenahealth Inc ranks third lowest with a a P/E ratio of 51.99.

Healthstream Inc follows with a a P/E ratio of 80.63, and Medidata Solutio rounds out the bottom five with a a P/E ratio of 120.50.

SmarTrend recommended that subscribers consider buying shares of Medidata Solutio on April 15th, 2019 as our technology indicated a new Uptrend was in progress when shares hit $78.18. Since that recommendation, shares of Medidata Solutio have risen 16.8%. We continue to monitor Medidata Solutio for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: lowest p/e ratio computer program Cerner Corp athenahealth inc :hstm healthstream inc medidata solutio