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Exploring the Growth Potential of NASDAQ:HQY as It Nears a Breakout.

By Mill Chart

Last update: Sep 27, 2023

Exploring Growth Potential: HEALTHEQUITY INC (NASDAQ:HQY) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and HEALTHEQUITY INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected HEALTHEQUITY INC on our screen for growth with base formation, suggesting it merits a closer look.

Evaluating Growth: NASDAQ:HQY

Every stock receives a Growth Rating from ChartMill, ranging from 0 to 10. This rating assesses various growth aspects, including historical and projected EPS and revenue growth. NASDAQ:HQY boasts a 8 out of 10:

  • 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.
  • The Revenue has grown by 17.97% in the past year. This is quite good.
  • The Revenue has been growing by 30.29% on average over the past years. This is a very strong growth!
  • 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.

How do we evaluate the Health for NASDAQ:HQY?

ChartMill employs a unique Health Rating system for all stocks. This rating, ranging from 0 to 10, is determined by analyzing various liquidity and solvency ratios. For NASDAQ:HQY, the assigned 7 for health provides valuable insights:

  • HQY has an Altman-Z score of 4.00. This indicates that HQY is financially healthy and has little risk of bankruptcy at the moment.
  • HQY's Altman-Z score of 4.00 is fine compared to the rest of the industry. HQY outperforms 79.28% of its industry peers.
  • HQY has a better Debt to FCF ratio (5.17) than 66.67% of its industry peers.
  • HQY has a Debt/Equity ratio of 0.45. This is a healthy value indicating a solid balance between debt and equity.
  • Looking at the Debt to Equity ratio, with a value of 0.45, HQY is in the better half of the industry, outperforming 62.16% of the companies in the same industry.
  • A Current Ratio of 4.09 indicates that HQY has no problem at all paying its short term obligations.
  • Looking at the Current ratio, with a value of 4.09, HQY belongs to the top of the industry, outperforming 90.99% of the companies in the same industry.
  • A Quick Ratio of 4.09 indicates that HQY has no problem at all paying 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.

Assessing Profitability for 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 3 year average ROIC (1.54%) for HQY is below the current ROIC(2.23%), indicating increased profibility in the last year.
  • The Profit Margin of HQY (1.37%) is better than 62.16% of its industry peers.
  • With an excellent Operating Margin value of 8.93%, HQY belongs to the best of the industry, outperforming 82.88% of the companies in the same industry.
  • The Gross Margin of HQY (59.69%) is better than 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 8:

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 69.84, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

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

Check the latest full fundamental report of HQY for a complete fundamental analysis.

Check the latest full technical report of HQY for a complete technical analysis.

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.



NASDAQ:HQY (12/8/2023, 3:30:01 PM)

After market: 68.48 0 (0%)


+0.76 (+1.12%)

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