NASDAQ:HQY—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

In this article we will dive into HEALTHEQUITY INC (NASDAQ:HQY) as a possible candidate for growth investing. Investors should always do their own research, but we noticed HEALTHEQUITY INC showing up in our strong growth, ready to breakout screen, which makes it worth to investigate a bit more.

Growth Insights: NASDAQ:HQY

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:HQY has earned a 8 for growth:

• The Earnings Per Share has grown by an impressive 54.78% over the past year.
• Measured over the past years, HQY shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.71% on average per year.
• 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!
• The Earnings Per Share is expected to grow by 33.64% on average over the next years. This is a very strong growth
• The Revenue is expected to grow by 12.65% on average over the next years. This is quite good.
• When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

A Closer Look at 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 4.03. This indicates that HQY is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 4.03, HQY is doing good in the industry, outperforming 79.82% of the companies in the same industry.
• HQY has a Debt to FCF ratio of 5.17. This is in the better half of the industry: HQY outperforms 66.67% of its industry peers.
• A Debt/Equity ratio of 0.45 indicates that HQY is not too dependend on debt financing.
• HQY has a Debt to Equity ratio of 0.45. This is in the better half of the industry: HQY outperforms 63.16% of its industry peers.
• A Current Ratio of 4.09 indicates that HQY has no problem at all paying its short term obligations.
• HQY has a better Current ratio (4.09) than 89.47% of its industry peers.
• A Quick Ratio of 4.09 indicates that HQY has no problem at all paying its short term obligations.
• With an excellent Quick ratio value of 4.09, HQY belongs to the best of the industry, outperforming 89.47% of the companies in the same industry.

Understanding NASDAQ:HQY's Profitability

ChartMill assigns a Profitability Rating to every stock. This score ranges from 0 to 10 and evaluates the different profitability ratios and margins, both absolutely, but also relative to the industry peers. NASDAQ:HQY scores a 5 out of 10:

• The 3 year average ROIC (1.54%) for HQY is below the current ROIC(2.23%), indicating increased profibility in the last year.
• With a decent Profit Margin value of 1.37%, HQY is doing good in the industry, outperforming 61.40% of the companies in the same industry.
• Looking at the Operating Margin, with a value of 8.93%, HQY belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
• The Gross Margin of HQY (59.69%) is better than 81.58% of its industry peers.

Why is NASDAQ:HQY a setup?

ChartMill takes into account not only the Technical Rating but also assigns a Setup Rating to each stock. This rating, on a scale of 0 to 10, reflects the degree of consolidation observed based on short-term technical indicators. Currently, NASDAQ:HQY exhibits a 8 setup rating, indicating its consolidation status in recent days and weeks.

Besides having an excellent technical rating, HQY also presents a decent setup pattern. Prices have been consolidating lately. There is very little resistance above the current price. There is a support zone below the current price at 70.82, a Stop Loss order could be placed below this zone. Very recently a Pocket Pivot signal was observed. This is another positive sign.

More Strong Growth stocks can be found in our Strong Growth screener.

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

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

Disclaimer

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.