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

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

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 69.49% over the past year.
• HQY shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.71% yearly.
• Looking at the last year, HQY shows a quite strong growth in Revenue. The Revenue has grown by 16.81% in the last year.
• 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 37.60% on average over the next years. This is a very strong growth
• HQY is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.98% yearly.
• 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 assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NASDAQ:HQY scores a 7 out of 10:

• HQY has an Altman-Z score of 4.24. This indicates that HQY is financially healthy and has little risk of bankruptcy at the moment.
• With an excellent Altman-Z score value of 4.24, HQY belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
• HQY has a better Debt to FCF ratio (4.96) than 66.67% 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.
• The Debt to Equity ratio of HQY (0.44) is better than 63.16% of its industry peers.
• A Current Ratio of 4.93 indicates that HQY has no problem at all paying its short term obligations.
• Looking at the Current ratio, with a value of 4.93, HQY belongs to the top of the industry, outperforming 92.11% of the companies in the same industry.
• 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 93.86% of the companies in the same industry.

Looking at the Profitability

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:HQY, the assigned 6 is noteworthy for profitability:

• With a decent Return On Equity value of 1.47%, HQY is doing good in the industry, outperforming 60.53% of the companies in the same industry.
• The 3 year average ROIC (1.54%) for HQY is below the current ROIC(2.77%), indicating increased profibility in the last year.
• HQY has a better Profit Margin (3.00%) than 71.93% of its industry peers.
• With an excellent Operating Margin value of 10.84%, HQY belongs to the best of the industry, outperforming 86.84% of the companies in the same industry.
• Looking at the Gross Margin, with a value of 60.90%, HQY belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.

Looking at the 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.

HQY has an excellent technical rating and also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. 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 77.33. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 76.93, 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.

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

Keep in mind

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.