Health Catalyst (HCAT) Upgraded to Buy: Here's What You Should Know

Core Viewpoint - Health Catalyst (HCAT) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in earnings estimates, which are closely correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling pressure that affects stock prices [4]. Company Performance and Outlook - The recent upgrade for Health Catalyst indicates a positive outlook for its earnings, suggesting potential buying pressure and an increase in stock price [3][5]. - Health Catalyst is projected to earn $0.36 per share for the fiscal year ending December 2024, reflecting a year-over-year increase of 140% [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - Health Catalyst's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10].