News Image

Is NASDAQ:HQY on the Verge of a Major Breakout as a Strong Growth Stock?

By Mill Chart

Last update: May 13, 2024

In this article, we'll take a closer look at HEALTHEQUITY INC (NASDAQ:HQY) as a potential candidate for growth investing. While it's important for investors to conduct their own research, HEALTHEQUITY INC has piqued our interest by appearing on our strong growth and breakout radar. Let's explore further.

Growth Examination for NASDAQ:HQY

To evaluate a stock's growth potential, ChartMill utilizes a Growth Rating on a scale of 0 to 10. This comprehensive assessment considers various growth aspects, including historical and estimated EPS and revenue growth. NASDAQ:HQY has achieved a 8 out of 10:

  • The Earnings Per Share has grown by an impressive 67.41% over the past year.
  • The Earnings Per Share has been growing by 13.50% on average over the past years. This is quite good.
  • Looking at the last year, HQY shows a quite strong growth in Revenue. The Revenue has grown by 15.99% in the last year.
  • Measured over the past years, HQY shows a very strong growth in Revenue. The Revenue has been growing by 28.33% 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 25.98% yearly.
  • Based on estimates for the next years, HQY will show a quite strong growth in Revenue. The Revenue will grow by 13.66% on average per year.
  • The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.

Deciphering NASDAQ:HQY's Health Rating

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 4.25. This indicates that HQY is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 4.25, HQY belongs to the top of the industry, outperforming 82.05% of the companies in the same industry.
  • With a decent Debt to FCF ratio value of 4.45, HQY is doing good in the industry, outperforming 77.78% of the companies in the same industry.
  • HQY has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
  • HQY has a Debt to Equity ratio of 0.43. This is in the better half of the industry: HQY outperforms 63.25% of its industry peers.
  • A Current Ratio of 4.76 indicates that HQY has no problem at all paying its short term obligations.
  • The Current ratio of HQY (4.76) is better than 92.31% of its industry peers.
  • HQY has a Quick Ratio of 4.76. This indicates that HQY is financially healthy and has no problem in meeting its short term obligations.
  • HQY has a better Quick ratio (4.76) than 92.31% of its industry peers.

How do we evaluate the Profitability for NASDAQ:HQY?

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:HQY was assigned a score of 6 for profitability:

  • HQY has a better Return On Assets (1.76%) than 66.67% of its industry peers.
  • HQY has a better Return On Equity (2.74%) than 66.67% of its industry peers.
  • The last Return On Invested Capital (3.12%) for HQY is above the 3 year average (1.69%), which is a sign of increasing profitability.
  • HQY has a Profit Margin of 5.58%. This is amongst the best in the industry. HQY outperforms 82.91% of its industry peers.
  • HQY's Operating Margin of 12.82% is amongst the best of the industry. HQY outperforms 90.60% of its industry peers.
  • Looking at the Gross Margin, with a value of 62.29%, HQY belongs to the top of the industry, outperforming 85.47% of the companies in the same industry.

How do we evaluate the setup for NASDAQ:HQY?

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:HQY has a 7 as its setup rating:

HQY has only a medium technical rating, but it does show a decent setup pattern. Prices have been consolidating lately. There is a support zone below the current price at 77.32, a Stop Loss order could be placed below this zone.

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

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

For an up to date full technical analysis you can check the technical report of HQY

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.

Back

HEALTHEQUITY INC

NASDAQ:HQY (7/10/2024, 7:06:40 PM)

After market: 78.75 -0.29 (-0.37%)

79.04

-2.62 (-3.21%)

Follow us for more