HEALTHEQUITY INC (NASDAQ:HQY) – A Strong Growth Stock with Bullish Technical Setup

HEALTHEQUITY INC (NASDAQ:HQY) was identified by our screener as a strong growth stock with a favorable technical setup. The company combines solid fundamental growth metrics with a bullish chart pattern, making it worth a closer look for investors seeking growth opportunities.

Fundamental Strengths

• Growth Rating (8/10): HQY has demonstrated strong revenue and earnings growth, with revenue increasing by 20.03% over the past year and EPS growing by 38.50%. Future earnings are expected to rise by 19.79% annually.
• Profitability (6/10): The company maintains healthy margins, with a profit margin of 8.06% and an operating margin of 16.91%, outperforming most peers in the Health Care Providers & Services industry.
• Financial Health (6/10): HQY has a solid balance sheet, with a current ratio of 3.06 and a manageable debt-to-equity ratio of 0.50, indicating good liquidity and solvency.

Technical Setup

• Bull Flag Pattern: The stock is currently forming a bull flag, a continuation pattern that often precedes further upside after a strong prior move.
• Positive Trends: Both short-term and long-term trends are bullish, with the stock trading near the upper end of its 52-week range.
• Support & Resistance: Key support lies around $97.60-$100.38, while resistance is seen near $101.67 and $114.51. A breakout above $101.67 could signal further gains.

Why HQY Stands Out

HQY’s combination of strong growth fundamentals and a constructive technical pattern makes it an interesting candidate for investors looking for growth stocks with momentum potential. The company’s focus on health savings accounts (HSAs) and consumer-directed benefits positions it well in a growing industry.

For more details, review the full fundamental analysis and technical analysis reports.

Our Strong Growth Stocks with Good Technical Setup screener lists more stocks with similar characteristics and is updated daily.

Disclaimer

This is not investment advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.