HEALTHEQUITY INC (NASDAQ:HQY) – A Strong Growth Stock with Technical Breakout Potential

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

Fundamental Strengths

• Growth: HQY has demonstrated strong revenue and earnings growth, with revenue increasing by 19.21% over the past year and EPS growing by 28.91%. Future estimates suggest continued growth, with EPS expected to rise by 19.31% annually.
• Profitability: The company boasts an impressive operating margin of 19.59%, outperforming 96% of its peers in the Health Care Providers & Services industry. Its gross margin of 65.52% is also well above average.
• Financial Health: While debt levels are manageable, liquidity is strong, with a current ratio of 4.06, indicating no short-term solvency concerns.

Technical Setup

• Consolidation & Breakout Potential: HQY has been trading in a range between $98.05 and $116.65 over the past month. The stock is currently near the lower end of this range, presenting a potential entry point if support holds.
• Support Levels: Key support sits between $98.93 and $101.30, backed by moving averages and trendlines. A bounce from this zone could signal a continuation of the uptrend.
• Relative Strength: HQY has outperformed 81% of its industry peers over the past year, suggesting strong momentum.

Our Strong Growth Stocks with Good Technical Setup Ratings screener lists more stocks with similar characteristics and is updated daily.
For a deeper dive, review the full fundamental analysis of HQY or the technical analysis report.

Disclaimer

This is not investment advice. The observations here are based on current data, but investors should conduct their own research before making decisions.