Why NASDAQ:HQY Is a Standout High-Growth Stock in a Consolidation Phase.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if HEALTHEQUITY INC (NASDAQ:HQY) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted HEALTHEQUITY INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

How We Gauge Growth for NASDAQ:HQY

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:HQY was assigned a score of 8 for growth:

• The Earnings Per Share has grown by an impressive 54.78% over the past year.
• HQY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.71% yearly.
• Looking at the last year, HQY shows a quite strong growth in Revenue. The Revenue has grown by 17.97% in the last year.
• Measured over the past years, HQY shows a very strong growth in Revenue. The Revenue has been growing by 30.29% on average per year.
• HQY is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 33.64% yearly.
• Based on estimates for the next years, HQY will show a quite strong growth in Revenue. The Revenue will grow by 12.65% on average per year.
• The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

A Closer Look at Health for NASDAQ:HQY

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:HQY has earned a 7 out of 10:

• An Altman-Z score of 3.94 indicates that HQY is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 3.94, HQY is in the better half of the industry, outperforming 79.28% of the companies in the same industry.
• Looking at the Debt to FCF ratio, with a value of 5.17, HQY is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
• A Debt/Equity ratio of 0.45 indicates that HQY is not too dependend on debt financing.
• The Debt to Equity ratio of HQY (0.45) is better than 62.16% of its industry peers.
• HQY has a Current Ratio of 4.09. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
• HQY has a better Current ratio (4.09) than 90.99% of its industry peers.
• HQY has a Quick Ratio of 4.09. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
• HQY's Quick ratio of 4.09 is amongst the best of the industry. HQY outperforms 90.99% of its industry peers.

Profitability Insights: NASDAQ:HQY

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:HQY has achieved a 6:

• HQY has a better Return On Equity (0.66%) than 60.36% of its industry peers.
• The last Return On Invested Capital (2.23%) for HQY is above the 3 year average (1.54%), which is a sign of increasing profitability.
• The Profit Margin of HQY (1.37%) is better than 62.16% of its industry peers.
• HQY has a better Operating Margin (8.93%) than 82.88% of its industry peers.
• HQY's Gross Margin of 59.69% is amongst the best of the industry. HQY outperforms 82.88% of its industry peers.

Looking at the Setup

ChartMill incorporates a Setup Rating in its analysis, which measures the extent of consolidation in a stock over recent days and weeks. This rating, ranging from 0 to 10, is updated daily and takes into account multiple short-term technical indicators. The current setup rating for NASDAQ:HQY is 9:

Besides having an excellent technical rating, HQY also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is very little resistance above the current price. There is a support zone below the current price at 70.30, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

Our latest full fundamental report of HQY contains the most current fundamental analsysis.

Our latest full technical report of HQY contains the most current technical analsysis.

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.