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

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether HEALTHEQUITY INC (NASDAQ:HQY) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but HEALTHEQUITY INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Evaluating Growth: NASDAQ:HQY

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:HQY has received a 8 out of 10:

• HQY shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 69.49%, which is quite impressive.
• 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 16.81% 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 37.60% yearly.
• The Revenue is expected to grow by 14.73% 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.

Understanding NASDAQ:HQY's Health

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:HQY has achieved a 7 out of 10:

• HQY has an Altman-Z score of 4.43. This indicates that HQY is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 4.43, HQY belongs to the best of the industry, outperforming 83.62% of the companies in the same industry.
• HQY has a better Debt to FCF ratio (4.96) than 69.83% of its industry peers.
• HQY has a Debt/Equity ratio of 0.44. This is a healthy value indicating a solid balance between debt and equity.
• HQY has a better Debt to Equity ratio (0.44) than 62.93% of its industry peers.
• HQY has a Current Ratio of 4.93. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
• The Current ratio of HQY (4.93) is better than 92.24% of its industry peers.
• A Quick Ratio of 4.93 indicates that HQY has no problem at all paying its short term obligations.
• Looking at the Quick ratio, with a value of 4.93, HQY belongs to the top of the industry, outperforming 93.97% of the companies in the same industry.

Profitability Assessment of NASDAQ:HQY

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:HQY, the assigned 6 is a significant indicator of profitability:

• Looking at the Return On Equity, with a value of 1.47%, HQY is in the better half of the industry, outperforming 61.21% of the companies in the same industry.
• The last Return On Invested Capital (2.77%) for HQY is above the 3 year average (1.54%), which is a sign of increasing profitability.
• The Profit Margin of HQY (3.00%) is better than 73.28% of its industry peers.
• With an excellent Operating Margin value of 10.84%, HQY belongs to the best of the industry, outperforming 87.93% of the companies in the same industry.
• The Gross Margin of HQY (60.90%) is better than 84.48% of its industry peers.

How does the Setup look for NASDAQ:HQY

Alongside the Technical Rating, ChartMill assigns a Setup Rating to evaluate the consolidation level of a stock. This rating, ranging from 0 to 10, is updated daily and considers various short-term technical indicators. The current setup rating for NASDAQ:HQY is 8:

HQY has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately. A pullback is taking place, which may present a nice opportunity for an entry. There is a resistance zone just above the current price starting at 82.08. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 81.04, a Stop Loss order could be placed below this zone.

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.

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

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.