Health Catalyst: Tailwinds As Hospitals Use Tech To Offset Higher Costs

Jan. 05, 2023 1:41 PM ETHealth Catalyst, Inc. (HCAT)ORCL, IBM
Chetan Woodun profile picture
Chetan Woodun


  • Health Catalyst, Inc., after a 74% downside, spells opportunity, especially when ratings are all favorable.
  • However, analysts at Evercore think differently and have downgraded Health Catalyst stock.
  • After assessing opportunities and risks, I conclude that Health Catalyst stock is a buy, as it is benefiting from healthcare companies using technology to offset the higher cost of operations.
  • To support my position on Health Catalyst, Inc., I use studies by management consultancies about how inflation is transforming the healthcare sector.

Two doctors looking at patient data on digital tablet


Lying at the intersection of healthcare and technology, Health Catalyst, Inc. (NASDAQ:HCAT) stock has suffered from a 74% downside in the last year. Now at $10.49, HCAT stock seems a good investment, especially since its ratings are all green as pictured below.


Company metrics and Quant Ratings (


Segmental Revenues and Cost of Sales (


Quarterly Income Statement (

HCAT's Valuation Metrics (

This article was written by

Chetan Woodun profile picture
My aim is to provide differentiated insights, whether it is for investing, trading, or informational reasons. For this purpose, I am not a classical equity researcher or fund manager, but, I come from the IT world as the founder of Keylogin Information and Technologies Co. Ltd. Thus, my research is often backed by analytics and I make frequent use of charts to support my position.I also invest, and thus, in this tumultuous market, I often look for strategies to preserve capital. As per my career history below, I have wide experience, initially as an implementer in virtualization and cloud, and I was subsequently a team leader and project lead, mostly working in telcos.I have also been a mediocre entrepreneur in real estate, and a farmer, and like to dedicate at least 5 hours per week to working on a non-profit basis. For this purpose, I regularly contribute peer reviews and opinions for enterprise tech and help needy families by providing sponsored work.As for Research, I started with Tech stocks before going Multi-Tech with Fintechs, Biotechs, and Cryptotechs.I have been investing for the last 25 years, initially in mutual funds where the "learned economists" would always advise you to "think long term". Got a lot of experience in the 2008/2009 downturn when I lost a lot. Since then I do my own research and have fallen in love with Seeking Alpha because of the unique perspectives it provides to someone investing hard-earned money as well as access to some of the best financial advisors.We live only once but can have many "investment lives" especially when investing in individual stocks.

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This is an investment thesis and is intended for informational purposes. Investors are kindly requested to do additional research before investing.

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