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IPOs: The 5 Best New Stocks of Q1 2014

Pharmaceutical companies dominate the list of best IPOs


New Stocks — Castlight Health (CSLT)

new-stocks-iposIPO Return: 83.4%

Castlight Health (CSLT) leverages Big Data to help enterprises provide low-cost healthcare to employees. A key part of this is using sophisticated algorithms and machine learning systems.

All in all, Castlight Health has been able to attract a sterling customer list, which includes 24 members of the Fortune 500. The client roster features names such as Walmart (WMT), Microsoft (MSFT) and Honeywell (HON).

Growth has been robust, but the revenue levels are still fairly small. From 2011 to 2013, revenues spiked from $1.9 million to $13 million. Last year, the net loss was substantial at $62.2 million.

But investors are taking the long view on things. After all, the market potential is massive. For 2014, U.S. spending on healthcare is projected to reach $3.1 trillion, roughly $620 billion of which is expected to come out of the coffers of employers.

Article printed from InvestorPlace Media,

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